Harrisburg, February 4, 2020 – State Senator John Yudichak (I-Luzerne/Carbon) announced today that his amendment to House Bill 1100 that guarantees a minimum investment of $450 million, the creation of 800 new jobs, the payment of prevailing wage rates, and the use of local labor passed the Senate by a vote of 39-11. The bill will now move to the House of Representatives for concurrence.
House Bill 1100, introduced by Representative Aaron Kaufer (R- Luzerne), establishes an Energy and Fertilizer Manufacturing Tax Credit to foster the development and construction of new petrochemical and fertilizer manufacturing plants in Pennsylvania. The tax credit is similar to the Pennsylvania Resource Manufacturing Tax Credit program that has leveraged $6 billion in private investment in the Shell Cracker plant that has created 6,000 new jobs in Beaver County.
“House Bill 1100 is a bipartisan bill that takes advantage of Pennsylvania’s abundance of natural gas and uses proven economic incentives to attract manufacturing companies to build world class petrochemical facilities in northeastern Pennsylvania,” said Senator John Yudichak. “We have a proven tax credit model that has worked in western Pennsylvania, it’s time we deploy these same economic incentives in northeastern Pennsylvania that will help us attract historic private investment in our communities and create thousands of family sustaining, prevailing wage construction trade jobs.”
As amended, House Bill 1100 would require companies to make the following investments in Pennsylvania:
- A capital investment of at least $450 million to construct the facility and place it into service.
- Creation of at least 800 full-time jobs (construction and/or permanent jobs).
- Payment of prevailing wage on any construction, reconstruction, demolition, alteration or maintenance of the facility.
- A company must make a good faith effort to employ local construction workers.
- A company must purchase and use Pennsylvania natural gas to produce a Pennsylvania manufactured petrochemical product.
“This bill is about using natural gas in Northeast Pennsylvania to compete with manufacturers overseas for the benefit of the people of Northeast Pennsylvania,” said Representative Kaufer. “By utilizing natural gas to encourage manufacturing, we are making sure that the residents of northeastern Pennsylvania will benefit by attracting billions of dollars of investment, thousands of family-sustaining jobs, and world class facilities locating to our region. This is a once in a generation opportunity, and our region cannot afford to miss it.”
Senator John Yudichak