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FOR IMMEDIATE RELEASE
January 17, 2008

Committee Approves Economic Stimulus Bill

Senate Bill 1229 would reform CNIT, eliminate NOL cap

The Senate Finance Committee approved an economic stimulus measure on Wednesday (January 16), according to Committee Chairman Pat Browne (R-16).

Senate Bill 1229, also known as the High-Tech & Manufacturing Stimulus Act, would revise the formula for Pennsylvania's Corporate Net Income Tax (CNIT) to one solely based on sales. It would also remove the Net Operating Loss (NOL) cap.

"These measures are intended to help Pennsylvania’s businesses particularly cyclical companies such as manufacturers and those in high-tech fields," said Senator Browne, prime sponsor of the bill. "Moving to single sales factor will ease the burden on Pennsylvania’s employers while leveling the playing field in the area of competition with companies located in other states. Improving our competitive stance is also the key component of the elimination of the NOL cap. Currently, with the cap, Pennsylvania manufacturers can be taxed at a rate much higher than a similar manufacturer would be taxed in Ohio, New York or New Jersey."

Contact:

Stacey M. Connors
(717) 787-1349