HARRISBURG – The Senate approved bipartisan legislation today that would help create thousands of family-sustaining jobs and provide a boost to Pennsylvania’s energy economy, according to Senate Majority Leader Jake Corman.
“This tax credit is a game changer for Pennsylvania,” Senator Corman said. “This isn’t money that is coming out of the state treasury. This is money that once the employers have created the jobs and made the investments then the employer gets a tax break. As a trade, we have hundreds of workers who have good jobs, which means they are investing in their community, buying homes and providing for their families. If we don’t do this tax credit, these jobs aren’t created, and these additional community investments are not made. We are creating money and wealth for the Commonwealth here today.”
House Bill 732 would create the Local Resource Manufacturing Tax Credit Program to add an incentive for manufacturers to invest in Pennsylvania communities. The program would be available to facilities that use dry natural gas to produce fertilizer and other petrochemical products.
Under the program, a business would be required to invest more than $400 million in a Pennsylvania facility and create at least 800 jobs in order to qualify for a tax credit.
The bill would require companies to make a good faith effort to recruit and employ local workers in Pennsylvania. A company would not be eligible for the tax credit until the jobs have already been created.
The program is capped at $6.6 million per facility, and the number of facilities that can receive tax credits is limited to four projects for a maximum total fiscal impact of $26.7 million per year.
The approach of the bill mirrors the Pennsylvania Resource Manufacturing tax credit, which was established during the 2012-13 budget and led to the location of the Shell Pennsylvania Petrochemicals Complex in Beaver County. Construction of that plant has already created thousands of jobs and is projected to have a long-term economic impact of $6 billion.
The bill was sent back to the House of Representatives for consideration.
CONTACT: Jenn Kocher – email@example.com