Pennsylvania House Bill HB517

Pennsylvania 2023-2024 Regular Session

• Introduced: 3/17/23
• Refer: 3/17/23

Caption

Providing for a construction job tax credit and for compliance with prevailing wage for tax credits and imposing penalties.

Impact

This legislation will amend the existing Tax Reform Code of 1971, creating a new framework for tax credits aimed at construction projects. It introduces mechanisms for job creation and mandates that these jobs meet specific wage and operational standards. By imposing these requirements, the bill aims to ensure that new employment opportunities are not only plentiful but also provide fair wages to workers. Additionally, there are provisions for audits and penalties to enforce compliance with the rules established for the tax credit, which will enhance the accountability of businesses receiving these benefits.

Summary

House Bill 517 seeks to enhance economic development in Pennsylvania by establishing a construction job tax credit. This credit is designed to incentivize companies to invest in substantial construction projects while ensuring compliance with the prevailing wage regulations. Companies that complete eligible construction projects must create a minimum of 200 new jobs and commit to utilizing local labor and materials. The bill applies to facilities that require an investment of at least $450 million, thus primarily targeting large-scale construction efforts that may significantly affect local economies.

Sentiment

The sentiment surrounding HB 517 appears to be generally positive among proponents who see it as a vital step toward fostering job growth and attracting significant investments in the state. Supporters, including various legislators and business groups, argue that these tax incentives are crucial for competing with neighboring states and will lead to long-term economic benefits. However, there may be dissent among those who raise concerns about potential abuses of the tax credit or the adequacy of wage requirements, emphasizing the importance of sincere compliance with the prevailing wage standard.

Contention

Notable points of contention may arise regarding the criteria for eligibility and the effectiveness of compliance measures included in the bill. Critics could argue that while the tax credit encourages investment, it may not sufficiently protect against wage violations or ensure that local employment needs are met. Moreover, the requirement for a large financial commitment may deter small to mid-sized contractors from participating, potentially concentrating economic benefits among larger corporations. As with many legislative efforts aimed at economic stimulation, the balance between incentivizing growth and protecting worker rights will likely be a focal point of ongoing discussions.