|Posted:||May 9, 2016 02:39 PM|
|From:||Senator Wayne D. Fontana|
|To:||All Senate members|
|Subject:||R&D Tax Credit|
|In 1997, the Pennsylvania General Assembly created the Research and Development (R&D) Tax Credit to promote competition among businesses to expand research and create jobs. Specifically, the credit is available to businesses and individuals that are doing qualified research in the commonwealth, particularly in technological or scientific nature. The tax credit may be claimed against the capital stock and franchise tax, corporate net income tax and personal income tax. This program is currently capped annually at $55 million, of which $11 million is set aside for small businesses. More than 2,000 companies have been awarded with these tax credits since the program began.
Act 85 of 2012 was passed to make permanent the R&D Tax Credit, or so most people thought. However, an expiration date was left in place and the credit actually ended at the close of 2015.
More recently, the federal government voted to make permanent their version of the R&D Tax Credit, ending the more than 25 year old temporary provision. Believing Pennsylvania should also continue to allow the issuance of future R&D Tax Credits, I will be introducing legislation that would reauthorize the program as well as make it permanent. By doing away with any sunset provisions, I feel that businesses can come to the commonwealth with the certainty that the tax credit will be available and encourage long-term investments.
I encourage you to co-sponsor this business and job-friendly legislation!
Introduced as SB1278