Bill would provide tax credit for energy, fertilizer manufacturing

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The state House Finance Committee voted Tuesday to advance the Energy and Fertilizer Manufacturing Tax Credit, which seeks to encourage manufacturing companies to invest in Pennsylvania.

The bill amends the Tax Reform Code of 1971 and mirrors the Pennsylvania Resource Manufacturing tax credit. The credit is attributed with the Shell Cracker Plant’s investment in western Pennsylvania.

“This legislation would provide our region with ample investment, workforce, and economic growth opportunities,” Rep. Aaron Kaufer (R-Luzerne), who introduced the energy and fertilizer credit, said. “We are talking about over a billion-dollar investment and over a thousand permanent jobs along with thousands of construction jobs. This is truly a once in a generation investment and will be a game-changer for the economy in northeast Pennsylvania.”

The energy and fertilizer credit focuses on manufacturers using methane to produce ammonia, urea, and methanol.

Manufacturers must meet three requirements to qualify for the credit. They must purchase and use methane in the manufacture of petrochemicals or fertilizers at a facility in Pennsylvania, must make a capital investment of at least $1 billion in construction of the facility, must create at least 1,000 full-time jobs during the construction phase.

The bill is part of the “Energize PA” legislative package.