Bethlehem – June 15, 2022 – State Senator Lisa M. Boscola released the following statement today regarding a favorable vote on decreasing the corporate net income tax in Pennsylvania:
“Pennsylvania has one of the highest corporate net income tax rates in the country. Senate Bills 447 and 771 would gradually reduce the corporate net income tax from 9.99% to 6.99% over the next few years. This shift in tax rates will attract business and individuals to move to Pennsylvania and discourage our current residents to move to states with more favorable tax laws.]
Additionally, this reduction in corporate net income tax will have a direct impact on utility prices. Pennsylvania has previously seen a reduction in utility rates in 2018 when the Federal Government reduced tax rates under the Tax Cuts and Jobs Act (TCJA) of 2017. This past precedent tells us that if a utility’s corporate tax rates are reduced so will the cost paid by a ratepayer.
Under Pennsylvania law, if corporate taxes are lowered for utility companies than those companies must lower their rates or provide a negative surcharge to customers to reflect such a change. Therefore, reducing the corporate net income tax would effectively lower utility bills for all Pennsylvanian’s during a time where utility rates are increasing.
Today’s vote is a step forward in continuing to make Pennsylvania a more competitive state across the country and ensures more dollars will be saved by consumers.”