POPULATION: 12,773,801
LABOR FORCE: 6,347,000
RIGHT TO WORK: No
TRADITIONAL INDUSTRIES:Energy, life sciences, agriculture, advanced manufacturing and materials, tourism
TARGETED INDUSTRIES: Energy, life sciences, advanced manufacturing and materials, technology, agribusiness, plastics, aviation
COLLEGE GRADUATES: (Age 25 and over) 27.0%
BASIC BUSINESS TAXES:
Corporate Net Income Tax: 9.99 percent on federal taxable income, without the federal net operating loss deduction and special deductions, and modified by certain additions and subtractions. Domestic and foreign corporations are subject to the corporate net income tax for the privilege of doing business; carrying on activities; having capital or property employed or used in Pennsylvania; or owning property in Pennsylvania.
Capital Stock and Foreign Franchise Tax: Imposed at a rate of 0.67 mills; this tax is being phased out and is anticipated to be completely eliminated by 2016. Entities exempt from the capital stock/foreign franchise tax include certain qualifying not-for-profit organizations, homeowners’ associations, membership organizations, family farm corporations, agricultural cooperatives, restricted professional companies, and business trusts.
Sales and Use Tax: 6 percent on the retail sale, consumption, rental or use of tangible personal property in Pennsylvania. The tax is also imposed on certain services relating to such property and on the charge for specific business 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. Major items exempt from the tax include food (not ready-to-eat), candy and gum, most clothing, textbooks, computer services, pharmaceutical drugs, sales for resale, and residential heating fuels such as oil, electricity, gas, coal and firewood.
Property Tax: Imposed by counties, municipalities, and school districts on the assessed 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 - eligible uses of the programs include:
Grants and loans for:
• Business relocation/attraction
• Business retention
• Expansion and construction
• Infrastructure
• Land and building acquisition
• Machinery and equipment purchases
• Planning (agriculture and tourism)
• Site remediation
• Start-up businesses
• Technical assistance
• Technology development & investment
• Work force development
• Working capital
Private financing:
• Tax-exempt and taxable bonds
• Loan Guarantees
Venture capital loans:
• Company investment
• Job creation
• Tax Abatements
