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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | November 9, 2023 01:23 PM |
|---|---|
| From: | Senator Gene Yaw |
| To: | All Senate members |
| Subject: | Extension of the Rural Jobs and Investment Tax Credit Program |
| In the near future, I plan to introduce legislation requesting an extension of the Rural Jobs and Investment Tax Credit (RJITC) program. The RJITC program was created to assist small businesses expand and create jobs by providing access to affordable capital for development in rural areas. This program is used to attract and retain businesses, create family sustaining jobs, and stimulate economic development in rural Pennsylvania. Under the program, the Department of Community and Economic Development may grant approved rural growth funds up to $50 million in investment authority, with $30 million of that authorized as credit eligible contributions. Businesses who contribute capital may receive equity interest in the fund and qualify for tax credits equal to 100% of the credit-eligible investment. The contribution made by the business must be used by the rural growth fund for investment in rural growth businesses. As of June 2023, $21.3 million has been invested in 11 unique businesses in Pennsylvania towns as small as 600 residents. All $50 million of the authorized funds must be invested by summer 2024. Renewing the program this year prevents a gap where these businesses will not be able to access the financing they need to succeed. There is $28.7 million currently available in the program, but investment requests from small businesses exceed $60 million. Please join me in supporting an extension of the RJITC program to ensure continuous access to critical investment in rural Pennsylvania. |