With the New Year approaching, Pennsylvania businesses have plenty of reasons to feel optimistic. This past year brought meaningful achievements in tax and permitting reform — the result of years of advocacy by the business community working closely with state lawmakers. These wins show what can be accomplished when bipartisan leaders collaborate to strengthen Pennsylvania’s economy.

As the largest business association in the state, the PA Chamber is the Commonwealth’s frontline advocate for business growth. Every day, we work to shape policies that make it easier for businesses of all sizes to succeed.

Fresh off a presidential election that put Pennsylvania at the center of the national conversation, 2025 brings both opportunities and challenges at the state and federal levels. The decisions made in Harrisburg and Washington this year will profoundly affect Pennsylvania’s employers, workers, and families.

At the federal level, Republican majorities in Congress and the incoming Trump administration have elevated tax reform as an early priority. A modern, competitive tax code is essential to driving investment and job growth. The PA Chamber is partnering with the U.S. Chamber of Commerce to ensure that the pro-growth provisions of the Tax Cuts and Jobs Act (TCJA) are not only preserved but expanded before they expire in 2025. 

We will likely see a shift in federal regulatory policy, including workplace rules, environmental standards, and energy policy. Streamlining regulations could ease operational hurdles and foster innovation in industries like manufacturing, energy, and technology — sectors critical to Pennsylvania’s economy.

Closer to home, the bipartisan cooperation that delivered tangible wins for employers in the 2024-25 state budget offers a blueprint for continued progress. While we achieved milestone tax and permitting reforms this past year, there is broad recognition that more must be done to ensure Pennsylvania’s long-term competitiveness.

Sustainable transportation funding will be a major priority for 2025. Our aging infrastructure — roads, bridges, and transit systems — requires investment to meet today’s needs and prepare for tomorrow’s economy. A forward-looking, adaptable, comprehensive funding model that includes all aspects of transportation can support commerce and keep communities across the Commonwealth connected.

Pennsylvania communities and employers also need reliable, affordable energy to power our homes, businesses, and state economy. This actually presents the biggest generational challenge and opportunity for us as a Commonwealth: Pennsylvania is the top electricity exporter in the country and a global energy leader home to abundant natural resources, thought leaders, and innovators. Despite our enviable status, employers report rising energy prices and growing energy demands, which threatens overall growth. The business community, energy providers, consumers, and policymakers must embrace a comprehensive, all-of-the-above energy policy aimed at increasing capacity and work together to ensure supply meets demand. 

We cannot run a full-time economy on part-time energy — and increasing our energy capacity could fuel generations of economic development.

Expanding energy development ties directly into the need to achieve further progress on permitting reform. Delays in permitting processes still hinder investment and economic growth. The launch of the SPEED program that was enacted in 2024 proved that prioritizing efficiency and transparency can yield results. We must build on this momentum so Pennsylvania can operate a permitting system that gives businesses the confidence to expand.

In addition to permitting reform, tax reform remains at the forefront. Despite recent improvements, Pennsylvania still lags competitor states. Accelerating the reduction of our Corporate Net Income tax rate and further improving the state’s treatment of Net Operating Losses will signal to employers nationwide that Pennsylvania is serious about attracting and retaining businesses.

Despite our progress, Pennsylvania continues to struggle to attract businesses. We must commit to undoing our reputation as hostile to employers. For example, a national organization that tracks state litigation climates recently ranked Pennsylvania courts as the No. 1 “judicial hellhole” in the country. This is terrible marketing to employers looking for the best state in which to invest, resulting in fewer Pennsylvania jobs and driving up costs for our residents. We are urging lawmakers to advance policies that foster a more balanced legal and workplace environment. 

Pennsylvania businesses share a common goal: to innovate, expand, and create jobs. What they need from policymakers are practical, forward-looking solutions that foster growth and remove unnecessary barriers. The bipartisan progress we have seen proves that collaboration yields results.

The PA Chamber remains committed to advocating for policies that make our state a more competitive, vibrant place to live and work. 

This coming year offers a clear opportunity to build on the recent bipartisan successes that have made Pennsylvania a better state for business. By continuing to focus on policies that drive growth and reduce barriers, we can ensure a stronger, more prosperous future for all our state’s residents.

Luke Bernstein is president and CEO of the PA Chamber of Business and Industry.