This bill amends the Tax Reform Code of 1971, specifically focusing on the corporate net income tax rates. The amendment modifies Section 402(b) to establish a new schedule for the annual tax rates on corporate net income. The tax rate will decrease from 9.99% for taxable years through December 31, 2022, to 8.99% for 2023, 8.49% for 2024, and 7.99% for 2025. Notably, the bill eliminates the previously scheduled rates for 2026 through 2031 and instead sets a flat rate of 4% for taxable years beginning January 1, 2026, and thereafter.

The changes reflect a significant reduction in the corporate net income tax rate over the coming years, aiming to provide a more favorable tax environment for corporations in Pennsylvania. The bill is set to take effect immediately upon passage.

Statutes/Laws affected:
Printer's No. 154 (Jan 29, 2025): P.L.6, No.2
Printer's No. 0154: P.L.6, No.2