CompetePA is a coalition of businesses and organizations representing more than half the private sector employment in Pennsylvania that wants to see the Commonwealth compete successfully for new jobs and investment.'

The Coalition has been working since 2005 to solve the serious business tax competitiveness problem in PA. We work to educate legislators about the need to eliminate the cap on Net Operating Loss (NOL) carryforwards and lower the overall rate of the CNI. These steps are necessary to begin to close the gap with growing competitor states.

The Case for Change
Policy Priorities
In the News
Get Involved
Coalition Members
Learn More
Contact Us

The Case for Change

  • Pennsylvania is one of only a few states that cap the amount of net operating losses (NOLs) that a company can carry forward and offset against their CNI tax liabilities in future years.
  • The state's 9.99% CNI tax rate is now the second-highest in the nation and a red flag to existing and potential new businesses about how serious Pennsylvania is about economic growth. Employers consistently cite the CNI tax as a major contributor to the poor business climate and a red flag that warns away companies that might otherwise consider locating or expanding in the Commonwealth.

Policy Priorities

  • We advocate lifting the cap on NOL carryforwards. PA is one of only a few states that cap NOL carryforwards. Read our summary to learn more.
  • We support a reduction of the Corporate Net Income (CNI) tax rate. Read our summary to learn more.
  • Instituting Mandatory Unitary Combined Reporting (MUCR) would have a broad range of negative consequences on Pennsylvania's economic climate. MUCR creates complexity and uncertainty for businesses.

In the News

June, 2015
Letter to the PA General Assembly & Governor on NOL policy

October, 2015
Letter addressing our top priorities to the PA General Assembly & Governor

February 12, 2015
Greater Pittsburgh Chamber of Commerce Joins with the CompetePA Coalition and Speaker Turzai to Call for the Elimination of the Capital Stock & Franchise Tax

March 3, 2014
CompetePA Coalition Approves 2014 Tenets with a Continued Focus on Job Creation and Retention

February 6, 2013
CompetePA Commends Governor for Pro-Growth Budget Proposal

July 9, 2012
CompetePA Applauds Legislative Leaders, General Assembly and Governor for Implementation of Single Sales Factor Formula and Continued Phase-Out of Capital Stock and Franchise Tax

Get Involved

Learn More

Un-cap the Net Operating Loss (NOL) Carryforward

The majority of other states DO NOT CAP the NOL carryforward deduction in their states.

The current cap is $3 million or 20 percent.

Removing the cap on the NOL deduction would help two kinds of firms, both key to Pennsylvania's economy:

  • start-up firms in technology and biosciences which experience huge losses in early years that could be recouped, to some degree, if they reduced future taxes; and
  • cyclical firms, often manufacturers in commodity markets like steel, chemicals, or pulp and paper where profits and losses fluctuate in wide swings.

Find more information on net operating loss carryforwards (PDF file)

Oppose Mandatory Unitary Combined Reporting

Mandatory Unitary Combined Reporting will make Pennsylvania less competitive. In these economic times, a competitive business climate that leads to jobs and investment must be our primary goal. Any measure of combined reporting would deter business investment and make Pennsylvania even less competitive.

  • Combined reporting would discourage new businesses from locating here because it would expose their income in other states and countries to Pennsylvania business taxes. Industries such as manufacturing, business services and trade will experience tax increases under mandatory combined reporting.
  • It is easy to find an example of a firm that would pay 50% or even 100% more in businesses taxes under mandatory combined reporting. That is enough to force a decision to move jobs and investment out of our state.
  • Combined reporting creates uncertainty in revenue forecasts and collection and will result in increased administration and litigation costs for the Commonwealth.

Learn more about why Mandatory Unitary Combined Reporting will make Pennsylvania less competitive (PDF file)

The following links and reports will help you learn more about CompetePA and its priorities:


If you have questions or comments, please contact us via email, at or by phone at 412.281.4783 x3114.