That combined with her access to over 60% of the U.S. & Canadian population, 6 of the 10 largest U.S. markets, placing Pennsylvania right between the financial market of New York City and the regulation hub of Washington, D.C., simply supports Pennsylvania as a great place to do business!

The state’s Foreign Direct Investment services include:

  • Aiding companies in setting up their U.S. Entity
  • Provide information on Pennsylvania’s labor, averages wages, business tax structure and more.
  • Coordinating visits to the Commonwealth and potential sites.
  • Most important is connecting them to regional partners that will assist them with creating a successful business such as; Economic Development Experts, Suppliers, lawyers, accountants, bank experts, colleges/universities and more.
  • Extensive highway system – over 194,000 km
  • Modern freight railroad systems – 5th largest in U.S. – over 8,200 km
  • Three major ports with access to the Atlantic Ocean, Great Lakes and Gulf of Mexico
  • Six international airports (Philadelphia & Pittsburgh are major centers)

Financial Incentives:

* Pennsylvania offers a manufacturing exemption to manufacturers with a facility located in Pennsylvania. Manufacturers are exempt from taxation on property that is incorporated into the manufactured product.

* Property and equipment that are used predominantly and directly to produce the product are also exempt.

* The PA Resource Manufacturing Tax Credit establishes a new tax credit for an entity purchasing ethane for    use in manufacturing ethylene at a facility in Pennsylvania.

* The credit is equal to $.05 per gallon of ethane used beginning in January 1, 2017 through July 1, 2042.

* Eligible entities must make a capital investment of at least $1 billion and create the equivalent of at least 2,500 * full-time jobs while constructing the manufacturing facility.

* Pennsylvania offers a 100 percent single sales factor for corporate net income tax apportionment purposes that encourages businesses to locate within the commonwealth. Under a single sales factor formula, the tax is now based solely on the percentage of a corporation’s total sales occurring in Pennsylvania.

* Market-based sourcing in Pennsylvania, where the customer receives the benefit, provides corporate income tax advantages.

* Net Operating Loss Deduction cap has increased to $4 million or 25 percent of Pennsylvania taxable income for tax year 2014 and $5 million or 30 percent for tax year 2015 and beyond. Additionally, the Corporate Loans Tax was repealed effective in 2014.

* Pennsylvania has the lowest marginal personal income tax rate (3.07 percent) in the nation among states that levy an income tax. This benefit: Shareholders of an S corporation or LLC Partners in a partnership Sole proprietorships Employees of any entity engaged in the manufacturing industries.

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