Legislation would create construction tax credit

Legislation soon to be introduced in the state House of Representatives would create a construction job tax credit.

The Construction Job Tax Credit, formerly HB 1125, would create a construction job tax credit of $20,000 per full-time equivalent job that is created during the construction phase. It would be awarded to manufacturing or processing facilities in Pennsylvania that meet six qualifications.

The facilities must create at least 200 new jobs during the construction phase of the project; make good faith efforts to recruit and employ workers from the local labor market; comply with the Prevailing Wage Act for the new construction jobs created; maintain the project facility operations in Pennsylvania for at least 10 years; make a private capital investment of at least $450 million; and use at least 50 percent of the raw materials during construction that are sourced from within the state.

The goal of the bill is to meet the ongoing demands for construction workers and tradespeople and sustain statewide job growth.

State Rep. Ed Neilson (D-Philadelphia County) sent a memorandum to all House members on Monday, announcing that he will introduce the bill.

“Please join me in this effort to build Pennsylvania’s economic development incentives and attract capital investment from companies willing to create and retain good paying jobs,” Neilson said.