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 ending in 2022 to 8.99% in 2023, 8.49% in 2024, and 7.99% in 2025. Notably, the rate for the year 2026 is reduced from 7.49% to 5.99%. Furthermore, starting in 2027, the tax rate will be set at 4% for that year and all subsequent taxable years, replacing the previously proposed rates for 2028 through 2031.

The bill aims to provide a more favorable tax environment for corporations in Pennsylvania by significantly lowering the corporate net income tax rates over the next several years. The changes are designed to encourage business investment and economic growth within the state. The act is set to take effect immediately upon passage.

Statutes/Laws affected:
Printer's No. 784 (Mar 03, 2025): P.L.6, No.2
Printer's No. 0784: P.L.6, No.2