Sometimes, when I look out over the Pennsylvania business landscape, it looks like a field of raging fires — problems to solve — and it seems overwhelming. That’s when it’s time to reset and define priorities. Advocating for and implementing policies that help our members is within reach in the PA General Assembly when we work with colleagues.
The MBA’s focus is on health-care costs, workforce, taxes, regulations, energy, permitting and labor.
Please note: PA is the only state in the union to have a divided legislature. Compromise is how bills are passed and signed into law. We have a Democratic governor, the PA Senate has a Republican majority, and the PA House has a Democratic majority by one seat. It’s a challenge. No, we did not get everything we wanted. Some MBA-supported legislation remains in the PA House and Senate committees — not unusual — and that’s our assignment for the next session. That’s the future.
However, presently, we are grateful for our legislative victories whether they were passed as separate pieces of legislation or included in code bills.
CORPORATE NET INCOME TAX (CNIT) PHASEDOWN
The CNIT will further reduce from 8.49 percent to 7.99 percent in 2025 and is on track to phase down to 4.99 percent by tax year 2031. Although this passed last year, note that lawmakers can stop it if they choose.
NET OPERATING LOSS (NOLs)
NOLs are unused tax losses carried forward from prior tax years that can be used to offset current year taxable income. The deduction threshold increased from 40 percent of taxable income for tax year 2024 to 80 percent by tax year 2028. The compromise here is the higher thresholds only apply to NOLs generated after tax year 2024; older NOLs can only offset up to 40 percent of taxable income.
PERMITTING
Significant improvements to permitting processes were made that will reduce delays in development and business expansion projects. Businesses may now work with third-party professionals to help facilitate the review of applications for many key permits. Timeframes have been established for responses. Measures have been implemented for easier and more transparent tracking of permit applications.
TRANSPORTATION
Electric vehicles (EV) and hybrid vehicles will now pay annual fees to the Motor License Fund to make-up for lost gas taxes. Starting next year EV owners will pay a $200 fee with the fee jumping to $250 in 2026 and $286 by 2030. Hybrid owners will pay $50 in 2025 and $72 by 2030.
Addressing the shortage of commercial license drivers (CDL)
PA urged the U.S. Congress to lift restrictions for holders of Commercial Driver Licenses who are 18–20 years old, allowing them to transport goods across state lines.
Workforce/Education/Demographics:
The MBA was definitely instrumental in getting these bills passed. Our advocacy is focused on workforce given that PA’s demographic outlook is grim. An estimated 30 percent of the workforce will age out over the next decade.
The PA Senate’s GROW PA package of bills addresses workforce via post-secondary education, and career preparation planning.
Scholarships of $5,000 will be available to students enrolled in high-demand education programs if they agree to live and work in these industries in Pennsylvania after graduation for 12 months per each year of assistance.
Another program will let PA state schools charge the in-state tuition rate for first- time, first-year students from out-of-state students who commit to live and work in Pennsylvania after graduation for 12 months per each year of assistance.
The annual household income limit for the “Ready to Succeed” scholarship program was increased from $126,000 to $175,000, and program funding was increased by $36 million.
Here is to continuing success in the next legislative session!
Eileen Anderson
is the director of Government Relations at the Manufacturer & Business Association. Contact her at 412/805-5707 or eileenanderson@ mbausa.org.
