SENATOR YUDICHAK, REP KAUFER AND SUPPORTERS CELEBRATE SIGNING OF LOCAL RESOURCE MANUFACTURING TAX CREDIT

 

Harrisburg, July 23, 2020 – State Senator John Yudichak (I-Luzerne/Carbon), Representative Aaron Kaufer (R-Luzerne) and supporters of House Bill 732 gathered together to celebrate the signing of House Bill 732 by Governor Tom Wolf.

Last week, Senator Yudichak offered an amendment to House Bill 732, after negotiations with the Wolf Administration and several business and labor organizations, that establishes the Local Resource Manufacturing Tax Credit to attract private investment in the construction and operation of Pennsylvania manufacturing facilities that use dry natural gas to produce fertilizer and other petrochemical products.

Specifically, Senator Yudichak’s amendment provided a tax credit against 20 percent of a qualified company’s annual tax liabilities.  Qualifying for the Local Resource Manufacturing Tax Credit requires a company to invest $400 million in the construction of a new manufacturing facility, create 800 new and permanent jobs, pay prevailing wages and benefits, and use carbon capture and sequestration technology when economically feasible.

The Local Resource Manufacturing Tax Credit has no immediate fiscal impact to the state budget, and no tax credit is payable until at least 2025 when companies would become eligible to apply.

The Pennsylvania Manufacturers’ Association’s economic analysis of House Bill 732 estimates that more than 4,400 jobs and over $1.6 billion in economic benefits would be generated from the construction of four manufacturing facilities under the provisions of the legislation.

The Senate passed the legislation by a vote of 40-9. The House concurred with the changes made in House Bill 732 by a vote of 163-38. Governor Wolf signed the bill on Thursday morning.

State Senator John Yudichak (I-Luzerne/Carbon)

“Never has the interest of business and labor worked harder for the greater public good than the enactment of the Local Resource Manufacturing Tax Credit that will create thousands of new jobs and set the stage for the growth of entirely new manufacturing industries in northeastern Pennsylvania,” said State Senator John Yudichak. “Act 66 of 2020 is a bipartisan, thoughtful compromise between Governor Tom Wolf and the legislature that will leverage northeastern Pennsylvania resources to create northeastern Pennsylvania jobs for northeastern Pennsylvania families.”

Representative Aaron Kaufer (R-Luzerne)

“The legislation is about bringing good-paying jobs and cutting-edge technologies to northeastern Pennsylvania,” said Representative Aaron Kaufer (R-Luzerne). “It is about ensuring that we will be a manufacturing hub for the foreseeable future.”

Dennis Martire, Vice President and Mid-Atlantic Regional Manager of the Laborers’ International Union of North America (LIUNA)

“Bipartisan compromise prevailed to create thousands of construction and manufacturing jobs,” said Dennis L. Martire, Vice President and Mid-Atlantic Regional Manager of the Laborers’ International Union of North America (LIUNA). “I commend the lawmakers, especially Rep. Kaufer, Sen. Yudichak, Senate Majority Leader Jake Corman, and Governor Wolf, who worked tirelessly with business and labor advocates in this effort. Together, we have set a historic precedent in terms of both bipartisan achievement and policy. The legislation creates critical economic opportunities for many areas of the state while offering strong worker protections.”

Warren Faust – President, Northeast Pennsylvania Building and Construction Trades Council

“Act 66 will spark economic growth that is long overdue in northeast Pennsylvania,” said Warren Faust, President, Northeast Pennsylvania Building and Construction Trades Council. House Bill 732 will bring good jobs to our area both during the construction of these plants as well as the manufacturing of the products they will produce.”

David N. Taylor, President and CEO, Pennsylvania Manufacturers’ Association

“The enactment of the Local Resource Manufacturing Tax Credit will establish an entirely new manufacturing sector in Pennsylvania, adding a billion dollars in upfront capital investment, hundreds of millions of dollars in wages to construct and staff the new plants, and thousands of direct, indirect, and induced jobs across the areas of Pennsylvania that need them the most.”