|Posted:||July 9, 2019 09:36 AM|
|From:||Senator Jay Costa|
|To:||All Senate members|
|Subject:||Requiring Resource Manufacturing Tax Credit Recipients to Buy American Steel|
|In the near future, I plan to introduce legislation that will require the beneficiaries of the Resource Manufacturing Tax Credit (a.k.a. the Cracker Tax Credit) to meet the same requirements as public works projects and Redevelopment Assistance Capital Program (RACP) projects.
In 2012, the Resource Manufacturing Tax Credit was adopted as part of the Tax Code to attract a large ethane cracker plant to Western Pennsylvania. That incentive has now succeeded, and Shell Chemicals has now begun construction of a $6 billion plant in Beaver County. That is certainly good for jobs and the local economy, but it has been discovered that the construction of the facility is being completed with foreign steel.
Under the Steel Products Procurement Act, we require that public works and RACP projects are completed using American steel. The RACP projects are private sector projects completed partially with public resources. At a potential cost of over $60 million per year for a single tax payer, the beneficiary of the Cracker Tax Credit should have the same obligation to use American made products.
Please join me in cosponsoring this legislation.