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12/10/2019 11:11 PM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20190&cosponId=26638
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House of Representatives
Session of 2019 - 2020 Regular Session

MEMORANDUM

Posted: December 3, 2018 03:27 PM
From: Representative Christopher B. Quinn
To: All House members
Subject: 21st Century Manufacturing Innovation and Reinvestment Deduction Act (Former HB 1533)
 
In the near future, I plan to reintroduce legislation from last session that would amend Article IV of the Tax Reform Code to provide an incentive to Pennsylvania manufacturers that make large scale investments to increase or establish manufacturing capacity within the Commonwealth. The 21st Century Manufacturing Innovation and Reinvestment Deduction Act will permit manufacturers making capital investments in excess of $50 million to claim a deduction against their taxable income.

This proposal will permit manufacturers to enter into an agreement with the Commonwealth in advance of a capital project. Upon the completion of the project, the Department of Community and Economic Development is required to execute a satisfaction determination that would permit the taxpayer to claim a deduction against its taxable income. This incentive is not like a tax credit that can be deferred for tax planning purposes or assigned to another entity. The incentive/deduction can only be utilized by an entity that actually has a Corporate Net Income Tax liability and at no time can a taxpayer’s deduction reduce a taxpayer’s liability by more than 50%.

This is a new concept that will permit Pennsylvania to provide an incentive to attract capital investment in our manufacturing facilities now without any negative impact on our budget process or revenue collections.

Please consider cosponsoring this legislation.