Apr. 26, 2022 / Press Release

HARRISBURG – The Pennsylvania House of Representatives today passed major economic ignition legislation to lower the Corporate Net Income Tax and provide additional tax relief to job creators as House Republicans continue their work to make Pennsylvania the economic Envy of the East, House Majority Leader Kerry Benninghoff (R-Centre/Mifflin) said Tuesday.

“The House Republican Caucus is focused on passing legislation to make Pennsylvania the Envy of the East—to set our economy on fire so as to drive investment, create family-sustaining jobs and grow our communities,” Benninghoff said. “The concepts in this legislation have bipartisan support and are seen as critically necessary to change the perception of Pennsylvania’s lack of openness to receiving additional investment.”

The legislation, House Bill 1960 by Rep. Josh Kail (R-Beaver/Washington), would lower the Corporate Net Income Tax by one percentage point to 8.99 percent starting Jan. 1, 2023, with additional triggers to further lower the tax rate in future years.

The legislation would also provide additional tax simplification and fairness for Pennsylvania’s job creators by increasing the cap for net operating loss carry forwards.

The bill passed the House by a vote of 195 to 8.

“This is strong pro-growth legislation that will provide good jobs for Pennsylvanians and stand up for taxpayers and Pennsylvania families,” Benninghoff said. “This is legislation that, while just a start, will strengthen our communities, help stop our brain drain and bring investment into our state. We will never stop working to increase investment in Pennsylvania and grow our economy and there is more to come.”

The legislation is one of eight tax reform bills that have recently passed the House to help small business job creators and drive investment in Pennsylvania.

The other bills include:

  •   House Bill 199 (Rep. George Dunbar, R-Westmoreland): Amends the Tax Reform Code to align the Commonwealth’s Personal Income Tax with the federal Internal Revenue Code for the purposes of calculating cost, and percent, depletion of mines, oil and gas wells, and other natural deposits.
  •   House Bill 285 (Rep. Daryl Metcalfe, R-Butler): Amends the Tax Reform Code to apply certain provisions of the Internal Revenue Code permitting the deferral of taxation on a lump sum distribution from the Employee Stock Ownership Plan (ESOP) of a company.
  •   House Bill 324 (Rep. Martina White, R-Philadelphia): Amends the First Class City Business Tax Reform Act to extend the ability of businesses operating in the City of Philadelphia to carry forward net operating losses.
  •   House Bill 333(Rep. Eric Nelson, R-Westmoreland): Amends the Tax Reform Code to change certain depreciation deduction issues in Pennsylvania law.
  •   House Bill 385 (Rep. George Dunbar, R-Westmoreland): Amends the Tax Reform Code to exclude a forgiveness of indebtedness granted under the Coronavirus Aid, Relief, and Economic Security Act or Consolidated Appropriations Act, 2021, from Personal Income Tax.
  •   House Bill 1059 (Rep. Dave Hickernell, R-Lancaster/Dauphin): Amends the Tax Reform Code to increase the Personal Income Tax threshold whereby a taxpayer is required to make estimated payments.
  •   House Bill 2277 (Rep. Jesse Topper, R-Bedford): Amends the Tax Reform Code to repeal the requirement for Pennsylvania businesses to remit “prepayments” for their sales tax collections.

House Bill 1960 now similarly heads to the Senate for consideration.

Representative Kerry Benninghoff
Pennsylvania House Majority Leader
171st Legislative District
Pennsylvania House of Representatives

Media Contact: Jason Gottesman
(717) 512-0620
KerryBenninghoff.com / Facebook.com/RepBenninghoff

Pennsylvania House Passes Legislation to Help Make Pennsylvania the Envy of East, Benninghoff says