The Mayor of Philadelphia, Michael Nutter, announced a pilot program that will reduce the city’s tax rate for certain business industries. The program targets  Research-and-development firms in engineering and life sciences as well as computer system design firms.  Under the program, these city will exempt a portion of their net income from the business privilege tax.  For everyone else, the formula will remain the same: 50 percent on sales, 25 percent on payroll and 25 percent on property.   The revenue commissioner will issue new regulations in the spring to introduce the pilot program. The program is an effort to make Philadelphia more competitive and attractive to businesses.

Sharmil McKee | Business Attorney | blog@mckeeoffice.com