|Posted:||June 8, 2017 11:19 AM|
|From:||Senator Bob Mensch and Sen. Kim L. Ward, Sen. Andrew E. Dinniman, Sen. Wayne D. Fontana|
|To:||All Senate members|
|Subject:||21st Century Manufacturing Innovation and Reinvestment Deduction Act|
|In the near future we plan to introduce legislation amending 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 $100 million to claim a deduction against their taxable income.
This proposal will allow manufacturers who make significant financial capital improvements to claim a deduction against their taxable income. Upon the completion of the capital project, and successful review of eligibility criteria, the manufacturer will be eligible for a tax deduction against its taxable income. The tax deduction is not a tax credit, it is non-deferrable, or transferable to another entity. The deduction cannot reduce the manufacturer’s tax liability by more than 50%.
This 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.
If you have any questions call Bill Joraskie 717-787-3110.
Introduced as SB794