On July 8, after years of attempted tax cuts, the Pennsylvania legislature finally adopted a change to Pennsylvania's corporate net income tax (CNIT) and adopted other provisions targeted at reaching out-of-state companies doing business in the Keystone State. (See H.B. 1342.) Here are the top three corporate tax takeaways from the bill:

1. CNIT Reduction

Pennsylvania has long been criticized for its growth-inhibiting high tax rate of 9.99 percent. Pennsylvania's CNIT rate has consistently ranked it at the very top among states with the highest corporate income tax rates nationwide. The new bill lowers the CNIT rate incrementally, until it bottoms out at 4.99 percent in 2031. Upon being fully phased in, Pennsylvania's CNIT rate will rank among the lowest nationwide.

The lower CNIT rate could make Pennsylvania more attractive to businesses looking to relocate, given that neighboring states have significantly higher tax rates. This should also help Philadelphia as it hopes to attract more businesses. Philadelphia has been impacted by its own high business income and receipts tax rate, the effect of which has been further exacerbated by the high CNIT rate.