Pennsylvania 2023-2024 Regular Session

Pennsylvania House Bill HB2565

Introduced
9/17/24  
Refer
9/17/24  
Refer
10/22/24  
Report Pass
10/23/24  
Engrossed
10/23/24  

Caption

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) Tax Credits, repealing provisions relating to local resource manufacturing and for Pennsylvania Milk Processing and providing for Reliable Energy Investment Tax Credit and for Pennsylvania Milk Processing; in Regional Clean Hydrogen Hubs, further providing for definitions, for eligibility, for application and approval of tax credit, for use of tax credits and for applicability; in semiconductor manufacturing and biomedical manufacturing and research, further providing for definitions and for application and approval of tax credit and providing for sustainable aviation fuel; and, in application of Prevailing Wage Act, further providing for definitions.

Impact

If adopted, the bill is expected to bolster the state's economy, particularly in high-tech industries like semiconductor production and biomedical research. It establishes that qualified taxpayers must create a minimum number of jobs and make substantial investments in project facilities to be eligible for these tax credits. This legislative move aims to position Pennsylvania as a leader in advanced manufacturing and innovation by offering financial incentives to attract and retain businesses within these strategic sectors.

Summary

House Bill 2565 introduces a framework for providing tax credits to promote semiconductor manufacturing and biomedical manufacturing in Pennsylvania. It amends the existing Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, ensuring that tax benefits are available for companies making substantial capital investments in these sectors. The bill emphasizes job creation and economic growth by encouraging significant capital expenditures and local hiring.

Sentiment

The sentiment around HB 2565 appears largely positive among supporters who view it as a critical step towards enhancing Pennsylvania's competitive edge in the tech industry. Proponents argue that the tax credits will not only stimulate economic growth but also foster innovation and job opportunities. However, there are concerns from some critics regarding the sustainability of such incentives and whether they will effectively lead to long-term employment growth or merely temporary gains in jobs and investment.

Contention

Key points of contention may revolve around the criteria for 'qualified taxpayers' and the processes for applying and securing tax credits. The requirements stipulate that entities must demonstrate significant expenditures and job creation, which some may argue limits the accessibility of these incentives to larger companies. Additionally, there may be debate over whether the tax credits provide sufficient public benefit relative to the revenue loss the state government may experience from such tax-break policies.

Companion Bills

No companion bills found.

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