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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2015 - 2016
Regular Session
MEMORANDUM
| Posted: | December 19, 2014 10:02 AM |
|---|---|
| From: | Senator Vincent J. Hughes |
| To: | All Senate members |
| Subject: | Cosponsor memo #7 – Build PA Bond and Tax Credit Program |
| In the near future I plan to reintroduce SB 201 of the 2013-14 legislative session. This bill would create the Build PA Bond and Tax Credit Program. The plan would allow CFA and PENNVEST to issue $1billion in bonds over the next 5 years. Each would be capped at $500 million and a maximum of $200 million in debt would be issued annually. Principal on the bonds would be paid from shale tax revenues currently earmarked for the CFA and PENNVEST under the shale impact fee law (Act 13 of 2012). Instead of providing funds to make sure the bondholders get a "return" on their investment, the "return" will be in the form of tax credits that the bondholders can apply to Pennsylvania taxes. This will reduce debt costs for the issuing agencies by more than half of what they would otherwise pay. The first year cost of the tax credit is $10M, assuming interest rates remain below 5% and will increase in the out years as more debt is incurred. The maximum cost of the tax credit would be approximately $50M when the $1 billion in debt is totally incurred. Please join me in cosponsoring this legislation. Previous cosponsors included BREWSTER, TARTAGLIONE, FONTANA, YUDICHAK, COSTA, and FARNESE. |
Introduced as SB244