Pennsylvania House Republicans are pushing for Gov. Tom Wolf to sign into law an energy and fertilizer manufacturing tax credit, part of a series of bills called ‘Energize PA,’ aimed at job growth without increasing taxes and fees.
House Bill 1100 would give tax credits to manufacturers using Pennsylvania-produced methane to make ammonia, urea and methanol. The tax credits would be given to a company that invested at least $450 million in a project and created at least 800 temporary and permanent jobs. The benefits would come after the project is completed.
“Many of these products would be used in agribusiness,” said House Speaker Mike Turzai (R-Allegheny) in a news conference at the State Capitol in Harrisburg on Monday. “We will have facilities that will make use of this tax credit and create permanent jobs and create jobs constructing these facilities. This is going to be a gamechanger for the Commonwealth of Pennsylvania.”
Turzai likened the legislation to a similar bill passed in 2013, which brought Royal Dutch Shell to build a multibillion-dollar ethane cracker petrochemical plant in Beaver County. The facility, when finished early in the next decade, will produce ethylene, a chemical found in the production of plastics. It will employ about 600 people.
“We have already seen the positive effect a similar bill had on western Pennsylvania,” said Warren Faust, president of the Northeastern PA Building and Construction Trades. “The hands of those in the building trades are ready for the jobs. Facilities like this are good-paying jobs with family-sustaining wages, not to mention health care and retirement benefits.”
Lawmakers said HB 1100 is the ‘leading piece’ of legislation of an energy legislative package, which would also streamline the regulatory process and expand a grant program to bring natural gas pipelines into businesses.
The governor has said he would veto HB 1100, although the bill passed with a bipartisan vote of 157-35 in the House and 39-11 in the Senate.
“These are veto-proof majorities,” said Turzai.
“This legislation empowers Pennsylvania to leave low-wage jobs behind,” said House Majority Leader Bryan Cutler (R-Lancaster), “to cut the cord on government programs, and find individual success and opportunity right here in the Commonwealth. We strongly believe that HB 1100 is the next step on that path to that success.”
State Sen. John Yudichak (I-Luzerne/Carbon) said the bill has bipartisan support. “Republicans, Democrats, Independent, organized labor, chambers of commerce and leading economic development organizations from all across Pennsylvania, agree House Bill 1100 will create good jobs for Pennsylvania,” said Yudichak.
He said the legislation capitalizes on the growing natural gas industry in Pennsylvania as well as protecting the environment.
“Over the last decade as Marcellus Shale boomed in Pennsylvania, the natural gas industry created over 300,000 good jobs,” said Yudichak. “While we were producing those good jobs, Pennsylvania did more than its fair share to address climate change by cutting CO2 emissions by 30 percent and methane emissions by 40 percent. Pennsylvania can do both.”
“These are our livelihoods at stake,” said Tony Seiwell, business manager for LiUNA Eastern District Council. “This is the future of communities. It’s a chance to put us on the map.”
House Bill 1100, sponsored by Rep. Aaron Kaufer (R-Luzerne) said he drafted the legislation to bring jobs to the northeast part of the state. “These investments would also give a much-needed boost to our local and regional economy,” he said in a statement.