July 20, 2020
In one of their final acts before heading back to their districts likely until the fall, the General Assembly sent Gov. Tom Wolf a bill with strong bipartisan support that would help to direct Pennsylvania’s natural gas resources toward growth within the manufacturing sector.
House Bill 732 would establish the Local Resource Manufacturing Tax Credit Program, which is much like the existing Pennsylvania Resource Manufacturing Tax Credit that was established in 2012 and is widely viewed as the catalyst for bringing Shell’s multi-billion dollar ethane “cracker” plant to Beaver County. House Bill 732 aims to provide a tax credit (against 20 percent of annual tax liabilities to companies) to no more than four companies that meet certain eligibility requirements and that use methane from Pennsylvania natural gas in the manufacturing of petrochemicals or fertilizers. This credit would be awarded once the initial 30-month construction phase of a new facility has been completed (at a minimum cost of $400 million) and the plant is fully operational; and must also have created at least 800 construction and permanent full-time jobs. The bill also stipulates that the company pay all taxes during the construction phase and that the facility utilizes carbon capture and sequestration technology when economically able.
According to a story in Capitolwire, supporters of the legislation estimate that the program will generate more than $600 million in annual labor income and leverage over $1.6 billion in economic output, with two companies already interested in the type of investment necessary to be eligible for the program.
Founded in 1916, the Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with its membership comprising businesses of all sizes and across all industry sectors. The PA Chamber is The Statewide Voice of BusinessTM.