State to Broaden Base of Corporation Net Income Tax

From PA Chamber of Business & Industry

Beginning in January of 2020, the Pennsylvania Department of Revenue will begin to assess the state’s Corporate Net Income Tax on out-of-state corporations that do business in the Commonwealth. 

The change in policy comes on the heels of last year’s U.S. Supreme Court decision in South Dakota v. Wayfair which found that states can collect sales tax from corporations that, while not physically located within the states’ boundaries, do business within the state.  According to a Corporate Tax Bulletin issued by the Department, corporations that aren’t located in the state but have “$500,000 or more of direct or indirect gross receipts pursuant to their sales factor” sourced to Pennsylvania will be required to pay the state’s CNI tax.  The gross receipts sales can be factored from a combination of the following three categories: 1. the sale, rental, lease or licensing of tangible personal property; 2. the sales of services; and/or 3. the sale of licensing of intangibles, including franchise agreements. 

The Wolf administration has not publicly stated how much additional revenue this expansion of the CNI tax is expected to bring into the state’s General Fund.  The tax generated $3.4 billion in the 2018-2019 fiscal year.



Member News – October 16, 2019

  • DRIVE will host an Open House tomorrow, Thursday, Oct. 17, from 4-6 p.m., at its new office building located at 418 Railroad St., Danville (in the old Metso Minerals Building). Come check out the newly renovated DRIVE office space and common areas, which include a 700 square foot training room available for daily rental and 24,000 square feet available for fit-out and lease. Refreshments will be provided. RSVP by emailing or call 570-284-4296. 

 

 

 

  • There will be a fun, Halloween-themed, family-friendly fundraising event on Saturday, Oct. 26, at Hawkins Chevrolet, located at 1856 Montour Blvd. (Rt. 11), Danville, to benefit the Montour Area Recreation Commission, which manages the Montour Preserve. This event is being hosted by the Danville Business Alliance and several other Danville-based organizations. It will feature an obstacle course, pumpkin toss, trunk or treat and much more. All proceeds raised from the event will benefit MARC, which currently does not have enough funding to sustain operations beyond next fall. For additional information, visit the Facebook event page, and view the below video. 

  • Hand in Hand Family Resource Center will present a special Halloween edition of C.A.M.P.S. (Construction, Art, Music, Play, Sensory), called Tricks & Treats on Sunday, Oct. 27, from 2-5 p.m. at Arnold’s Golf Course in Mifflinville. The event will begin with a Halloween golf cart parade (with golf card decorated by local families), and then will move onto the C.A.M.P.S. program, which will include: building haunted houses from recycled materials, skeleton handprints, apple, pumpkin and potato stamping, blowing ghost paintings, making musical instruments, eyeball putting, pumpkin bowling, and more. This free event (which includes a suggested but not mandatory donation to benefit Hand in Hand), is for all ages and every ability. For more information, visit the Facebook event

Economic Development Groups Considering Opportunities

More information about the Opportunity Zone program

Economic development organizations from the region gathered recently at Monty’s on the Upper Campus of Bloomsburg University to learn more about a Federal program designed to spur development in selected communities. Qualified Opportunity Zones were created as part of the 2017 Tax Cuts and Jobs Act. The program provides tax benefits for investing eligible capital into designated zones.  

Investors who realize capital gains can defer their tax liability by investing in Qualified Opportunity Funds (QOF), which are established to provide funding for projects in Opportunity Zones. Funds can be used to invest in commercial properties, housing, and stock or interest in a business. If funds are held in a QOF for at least five years, 10% of the liability on the investment is eliminated. If the investment is held for at least seven years, an additional 5% of the liability is eliminated. If the investor holds the investment for at least 10 years, when the investor sells or exchanges the investment, the liability for the gain on the increased value of the investment is also eliminated. There are deadlines for investing funds in order to maximize tax benefits.

Opportunity Zones were established by census tract based on economic demographics. There are zones in significant areas of Berwick, Bloomsburg, and Danville. Congressman Dan Meuser spoke about the program with Chamber members in August. Meuser attended the workshop in early October which was sponsored by State Senator John Gordner and SEDA-COG. Representatives Kurt Masser and David Millard were also in attendance.

The Chamber has been in discussions with other economic development groups about potential projects in the three local zones.

Welcome Pennsylvania MENTOR

More than 400 businesses and organizations belong to the Chamber to receive benefits and support efforts to strengthen their businesses and our region. Increased membership allows us to offer additional programs and benefits, have a stronger voice in advocacy and be involved in more activities and initiatives in our communities. The Chamber welcomes its newest member, Pennsylvania MENTOR, to help us fulfill our mission.

Pennsylvania MENTOR is a leading home and community-based human services provider that serves individuals, both adults and children, with intellectual or developmental disabilities, as well as emotional, behavioral and mental health challenges. Part of how they go about serving the children among this population is through therapeutic foster care and foster parents, which are called “Mentors.” Founded in 1989, PA Mentor is part of The MENTOR Network, which is in 36 states. PA Mentor will soon be opening an office in the Columbia/Montour region, and can be reached at 570-982-4112, by email, or visit its website

United Way to Host United in Recovery Conference for Employers

Conference Agenda

The United Way of Columbia and Montour Counties will hold a United in Recovery Employer Conference on Friday, Nov. 8, from 8 a.m. – 4 p.m. at the Henry Hood Center on the campus of Geisinger Medical Center. There is no cost to attend and anyone is welcome. 

This conference will feature several sessions designed to make employers better aware of various aspects of opioid awareness. Session topics include: supervisor training; benefits of an employee assistance program (EAP); signs and symptoms of substance misuse; drug testing in a drug-free workplace; tools and techniques for reasons suspicion; why hire those in recovery and more. 

Sponsors of the event include the Chamber, Pine Barn Inn and Henry Dunn Insurance. Both a continental breakfast and lunch are included. Registration is preferred but not required, and can be done by emailing the United Way. For additional conference details or information about United in Recovery, visit the United Way’s website