CompetePA is a coalition of businesses and organizations representing more than half the private sector employment in Pennsylvania that wants to see the Commonwealth compete successfully for new jobs and investment.

The Coalition has been working since 2005 to solve the serious business tax competitiveness problem in PA. We work to educate legislators about the need to eliminate the cap on Net Operating Loss (NOL) carryforwards and lower the overall rate of the Corporate Net Income (CNI) tax. These steps are necessary to begin to close the gap with growing competitor states.

The Case for Change

  • Overall, we have one of the least competitive corporate tax environments in the country. In 2017, the Commonwealth ranked 44th out of 50 states in the Tax Foundation’s Corporate Tax Rank; only six states were listed as having a worse corporate tax environment.
  • Pennsylvania is one of only a few states in the nation that caps the usage of net operating losses (NOLs), and we have the highest non-graduated Corporate Net Income (CNI) tax rate in the country, at 9.99 percent.

Policy Agenda

  • Our coalition’s top priority is to fix the bonus depreciation changes made in PA Corporation Tax Bulletin 2017-02. Pennsylvania is the only state that made such drastic changes to its bonus depreciation law in reaction to the 2017 federal tax reform legislation. The Bulletin, which eliminates the ability for the taxpayer to take any deduction until qualified property is sold or disposed of, strongly discourages business expansion and investment in Pennsylvania.
  • ​Instituting Mandatory Unitary Combined Reporting (MUCR) would have a broad range of negative consequences on Pennsylvania’s economic climate. MUCR creates complexity and uncertainty for businesses.
  • We support a reduction of the CNI tax rate. We understand the current budgetary complexities with reducing the CNI rate, but we look forward to ongoing discussions with legislators and the administration around how we can work to reduce this uncompetitive rate in the near future.
  • ​Proposals to make the Commonwealth’s business climate more competitive should not target businesses unequally. The coalition encourages policy makers to consider any tax reform holistically (i.e., how one change could substantially alter the overall effective tax rate) and through a pro-economic growth lens.
  • The cap on the usage of Net Operating Losses (NOLs) should be fully lifted. Pennsylvania is one of only a few states that caps the amount of net operating losses (NOLs) a company can offset against its current corporate net income.

Download our 2018 Policy Agenda

Members of CompetePA

CompetePA has over 130 members throughout Pennsylvania – including nearly all statewide and regional business groups, small businesses and Fortune 500 companies. CompetePA has been representing the business community on corporate tax issues for more than ten years.

Download our 2018 Membership List

Join CompetePA

We invite you to join the coalition. If your business or organization supports the policy priorities outlined above, please complete the contact information below. Your organization’s name will then be added to our membership list.