CompetePA. www.CompetePA.com. CompetePA Briefing Presentation to the PA Foundry Association Monday, May 16, 2011 11:00am – 12:00pm Days Inn, State College, PA. Presentation Agenda. Background What is CompetePA? What are our top policy priorities? What has the coalition accomplished?
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Presentation to the PA Foundry Association
Monday, May 16, 2011
11:00am – 12:00pm
Days Inn, State College, PA
Pennsylvania Economy League, March 2011
Corporate Net Income Tax Rate
Pennsylvania Economy League, May 2010
HB650 which eliminates the cap on the amount of net operating loss a company can carry forward is passed in House (176-18)
HB515 which introduces a sales factor weight of 100% in the CNI apportionment formula is passed in House (197-0)
HB515 passed in Senate (31-19) with amendments that include the addition of language from HB650 to eliminate the cap on NOL
House concurred in Senate amendments, as amended by the House
Senate concurred in House amendments to Senate amendments
HB515 Signed in House and Senate/Vetoed by Governor
Motion to override Governor\'s Veto defeated, and the Governor\'s Veto sustained (116 - 76)
2006-07 enacted budget includes improvements to CNI tax: 1) cap on NOL carryforwards raised from $2 million to $3 million or 12.5% (whichever is greater), 2) sales factor raised from 60% to 70%, and 3) CSFT phase-out lowered from 4.99 to 4.89 for 2006
Coalition successfully defends against new business taxes and supports the continued phase out of the CSFT
2009-10 enacted budget includes improvements to CNI tax: 1) cap on NOL carryforwards raised to $3 million or 20% (whichever is greater) and 2) sales factor raised from 70% to 90%. These improvements will be made through a two-year phase-in and coupled with a three-year increase in the CSFTCompetePA Progress Through the Years
BOTTOM LINE – If Pennsylvania is to compete nationally and globally, we must have a pro-growth plan that attracts new companies to locate here and encourages those already in business here to expand their operations. We feel we can increase our competitiveness by moving to a single sales factor, eliminating the cap on NOL carryforwards and reducing the CNI rate.
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