Pennsylvania House of Representatives Speaker Mike Turzai (R-Allegheny) recently praised the Senate Finance Committee for advancing House Bill 1100, which reforms the energy and fertilizer manufacturing tax credit.
The bill, which was sponsored by Rep. Aaron Kaufer (R-Luzerne), advanced the House in September. It amends the Tax Reform Code of 1971 and mirrors the Pennsylvania Resource Manufacturing tax credit that became law in 2013.
That tax credit was used for the construction of the Shell petrochemical plant being built on a brownfield site in Beaver County. At the time, it was the largest construction project in North America, and nearly 6,500 skilled tradespersons worked to construct the facility.
House Bill 1100 would allow manufacturers of urea, methanol, and ammonia to seek a tax credit. These products can be used in agriculture.
The manufacturers would be required to create at least 1,000 full-time jobs during the construction of a facility. They would also need to make a capital investment of at least $1 billion to be eligible for the tax credit.
The bill moves to the full Senate for consideration. It is a piece of the “Energize PA” package.
If it becomes law, it will go into effect in 60 days.