|Posted:||December 3, 2020 12:59 PM|
|From:||Senator Bob Mensch|
|To:||All Senate members|
|Subject:||Expanding the 21st Century Manufacturing Innovation and Reinvestment Deduction Act|
|In the near future, I will be reintroducing Senate Bill 747 of last session, legislation to expand the 21st Century Manufacturing Innovation and Reinvestment Deduction Act.
The 21st Century Manufacturing Innovation and Reinvestment Deduction Act provides an incentive to Pennsylvania manufacturers that make capital investments in excess of $60 million; giving them the ability to claim a deduction against their taxable income.
This initial program has been well received by the business community; however, many smaller-scale businesses have also approached us to ask how they can use the program to grow their businesses and create additional jobs. As a result, this bill will amend this section of the Tax Reform Code to provide an incentive to Pennsylvania manufacturers that make large scale investments in excess of $1 million dollars within the Commonwealth.
Specifically, this proposal will state that any manufacturer that makes a private capital investment will be able to claim a deduction against its taxable income for a period of five years in the mannor below:
This concept will permit Pennsylvania to provide an incentive to attract capital investment in new manufacturing facilities now without any negative impact on our budget process or revenue collections.
Previous co-sponsors of Senate Bill 747 were: BROWNE, BARTOLOTTA, J. WARD, REGAN, DINNIMAN, BOSCOLA and YUDICHAK.
Introduced as SB288