POPULATION: 12,604,767
LABOR FORCE: 6,395,000
RIGHT TO WORK: No
TRADITIONAL INDUSTRIES: Mineral extraction and processing,
agriculture, advanced manufacturing,
pharmaceutical manufacturing,
tourism
EXPANDING INDUSTRIES: Life sciences, business and financial
services, high technology,
advanced materials and diversified
manufacturing, building and
construction, education, agriculture
and food production, information
and communication services,
logistics and transportation,
lumber wood, paper
COLLEGE GRADUATES: (Age 25 and over) 25.0%
BASIC BUSINESS TAXES:
Corporate Net Income Tax: 9.99
percent based on federal taxable
income before the net operating
loss deduction with certain modifications;
generally, Pennsylvania
follows the federal rules for
depreciation, except that it does
not allow for the deduction of
post-9/11 "bonus" depreciation;
for corporate net income tax purposes,
limited liability companies
are treated in the same manner as
for federal income tax purposes
Capital Stock and Foreign
Franchise Tax: Imposed at a rate
of 2.89 mills; this tax is being
phased out and is anticipated to
be completely eliminated by
2014. Assets used in manufacturing,
processing, or research and
development are exempt from
this tax.
Sales and Use Tax: 6 percent on
the sale at retail of tangible personal
property and certain specifically
enumerated services. By law, a 1
percent local tax is added to purchases
made in Allegheny County,
and 2 percent local tax is added
to purchases made in
Philadelphia. Purchases of materials
to be consumed in manufacturing
or those to be used
directly in manufacturing (e.g.,
equipment, raw materials, etc.)
are exempt from the sales and
use tax.
Property Tax: Imposed by counties,
municipalities, and school
districts on the assesed value of
property as established by local
assessor; no county or state tax
on personal property, whether
tangible or intangible
BUSINESS INCENTIVES:
Department of Community and
Economic Development (DCED)
Single Application for
Assistance – Financial assistance
(under a comprehensive
Economic Stimulus package
passed by the legislature in April
2004) can be obtained with a
simplified application form available
from the DCED's Customer
Service Center; eligible uses of
the programs include:
• planning grants (agriculture and
tourism)
• working capital
• payment of debt service
• business relocation/attraction
• land and building acquisition
• business retention
• expansion and construction
• startup businesses
• machinery and equipment
purchases
• site remediation
• work force development
• refinancing
• infrastructure
• venture capital
• job creation
• technical assistance
• technology investment
• tax credits and abatements
