Luke Bernstein, President & CEO, PA Chamber

In an interview with Invest:, Luke Bernstein, president and CEO of the PA Chamber, discussed the organization’s efforts to enhance Pennsylvania’s economic competitiveness through the Keystone Initiative – the long-term economic blueprint of the PA Chamber Foundation – and its strategic reforms. “Through sustained advocacy, we reduced the Corporate Net Income Tax rate to 7.99%, on a path to 4.99% within nine years,” Bernstein said, highlighting the impact of corporate tax reform on attracting business investment. The interview covered legislative priorities, workforce development, energy-driven tech growth, and future opportunities to position Pennsylvania as a global innovation leader.

What changes over the past year have had the greatest impact on the PA Chamber, and how have they shaped the organization’s direction or priorities?

In the three years since I became president of the PA Chamber, we’ve launched the Keystone Initiative — a collaborative, year-long process engaging private sector leaders, higher education, and government to develop a strategic blueprint for making Pennsylvania the most competitive state for business. This year, we finalized the report with roughly 100 specific recommendations. Among the most impactful achievements has been bipartisan corporate tax reform. Pennsylvania previously had the second-highest corporate net income tax rate at 9.99%, influencing companies like Intel to choose Ohio instead of Pennsylvania for investments. Through sustained advocacy, we reduced this rate to 7.99%, on a path to 4.99% within nine years. Another reform addressed our punitive treatment of startups. Pennsylvania’s 40% cap on net operating loss deductions created a startup tax, discouraging entrepreneurs, we raised this cap to 80%, eliminating this disadvantage for emerging companies. The third priority, permit reform, led to the SPEED Program, streamlining permitting while maintaining environmental protections, and establishing a shift in how Pennsylvania competes for projects. These changes were central Keystone Initiative recommendations, positioning Pennsylvania closer to states like Virginia and North Carolina through cross-party collaboration. 

What are your top legislative priorities for this year and how do they align with the needs of the business community?

Building on the Keystone Initiative, the PA Chamber is advancing four legislative priorities to boost Pennsylvania’s competitiveness. First, we aim to accelerate tax reform, by reducing the Corporate Net Income Tax rate to 4.99%, and increasing the net operating loss cap to 80% to attract investment faster. Second, we seek bolder permitting reforms beyond last year’s SPEED Program to make construction approvals more competitive, supported by a $70 million investment in pad-ready sites. Third, comprehensive regulatory reform is essential to reduce business barriers. Fourth, we prioritize developing a workforce for tomorrow’s economy, tying these priorities together. Pennsylvania’s energy advantage — being the largest electricity exporter and second-largest natural gas producer with resources surpassing Saudi Arabia’s oil reserves — offers a major opportunity. This energy abundance can power innovation economies, especially energy-intensive sectors like AI data centers, where queries consume seven to 10 times more power than traditional searches. During January’s polar vortex, our grid reliably supported neighboring states while meeting Pennsylvania’s needs, demonstrating our capacity to drive regional and national growth in biotech, advanced manufacturing, and beyond, positioning Pennsylvania as the engine of America’s energy and innovation future. 

What are the most promising opportunities currently emerging in Pennsylvania’s economic landscape, and how is the PA Chamber positioning itself to help businesses capitalize on them?

Major tech companies like Google, Meta, and NVIDIA are all expanding in Pittsburgh, betting on the region’s potential. This growth is fueled by Pennsylvania’s energy resources. In central Pennsylvania, the decommissioned Three Mile Island nuclear plant has been recommissioned through a partnership with Microsoft to power their data centers. In the Northeast, an old PPL and Talen Energy facility now supplies Amazon Web Services for their AI operations. Philadelphia’s Comcast AI center further demonstrates this momentum. With these developments, Pennsylvania is uniquely positioned to power the global innovation economy — transforming former energy assets into infrastructure for tomorrow’s technology. The opportunities are tremendous as we leverage our energy capacity to attract and sustain cutting-edge industries, driving economic growth and innovation across the state for years to come.

How is the PA Chamber supporting workforce development initiatives to ensure the state has the skilled labor needed to meet its growing economic potential?

Pennsylvania faces a workforce gap with only 66 qualified workers for every 100 jobs. We’re addressing this through our education system and innovative policies. First, we’ve tied education funding to performance metrics for high-growth industries like technology. Second, we’re tackling systemic barriers with comprehensive childcare reform, including regulatory changes, liability adjustments, and strategic funding for lasting solutions. We’re also advancing criminal justice reform via Clean Slate 3.0, as 70% of incarcerated individuals are functionally illiterate and 67% recidivate. Employment cuts recidivism by 23% to 24%, so we’re removing occupational licensing barriers and creating job pathways, benefiting individuals and the economy. Additionally, we promoted expanding internships this year by hosting Pennsylvania’s “Greatest Places to Intern” competition, converting “brain drain” into “brain gain,” especially with 93% of Carnegie Mellon students from out of state, anchoring talent here. These strategies address our workforce shortage while strengthening communities.

What are the PA Chamber’s top strategic priorities and goals for the next five years?

Pennsylvania can become the most competitive state for business by leveraging its strengths: vast energy resources, a robust education system, abundant water supplies, and proximity to major markets like New York, Washington D.C., Baltimore, Richmond, Charlotte, and the Midwest via Ohio. Our energy sector can drive the innovation economy in healthcare, education, automation, and life sciences, particularly in Southeast Pennsylvania’s bio and medical fields. By implementing the right policies and cutting regulatory burdens, we can compete globally, removing red tape while rolling out the red carpet for businesses. I’m excited about Pennsylvania’s future with its unique attributes — energy, location, and innovation sectors. Next year offers major opportunities as Philadelphia hosts the World Cup, MLB All-Star Game, PGA Championship, and America 250, celebrating the birthplace of independence. These events will showcase Pennsylvania globally, proving it’s the ideal place to move, work, and raise a family, capitalizing on this unprecedented convergence of advantages and attention.