PRINTER'S NO. 1410
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.1267
Session of
2025
INTRODUCED BY SAMUELSON, GREINER, HILL-EVANS, SANCHEZ, VENKAT,
SCHLOSSBERG, KHAN, GIRAL, HADDOCK, CERRATO, NEILSON AND
D. WILLIAMS, APRIL 17, 2025
REFERRED TO COMMITTEE ON FINANCE, APRIL 17, 2025
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in Pennsylvania Economic Development for a
Growing Economy (PA EDGE) tax credits relating to
semiconductor manufacturing and biomedical manufacturing and
research, further providing for definitions and for
application and approval of tax credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "qualified taxpayer" and
"semiconductor manufacturing" in section 1771-L of the act of
March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
1971, are amended and the section is amended by adding a
definition to read:
Section 1771-L. Definitions.
The following words and phrases when used in this subarticle
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23 shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Early stage semiconductor business." A business with less
than $10,000,000 in revenue and in the areas of research or
design of semiconductor materials, semiconductor devices or
semiconductor packing and testing.
* * *
"Qualified taxpayer." A company that satisfies all of the
following or is an early stage semiconductor business :
(1) Conducts semiconductor manufacturing, biomedical
manufacturing or biomedical research in this Commonwealth at
a project facility in this Commonwealth that has been placed
in service on or after the effective date of this section.
(2) Has made a capital investment of at least
[$200,000,000] $100,000,000 in order to construct the project
facility and place the project facility into service in this
Commonwealth.
(3) Has created a minimum aggregate total of [ 800] 100
permanent jobs.
(4) Has made good faith efforts to recruit and employ,
and to encourage any contractors or subcontractors to recruit
and employ, workers from the local labor market for
employment during the construction of the project facility.
(5) Has demonstrated that the new jobs created at the
project facility or for work covered by Subarticle F are paid
at least the prevailing minimum wage and benefit rates for
each craft or classification as determined by the Department
of Labor and Industry.
(6) The construction work to place a project facility
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30 into service shall be performed subject to the act of March
3, 1978 (P.L.6, No.3), known as the Steel Products
Procurement Act.
"Semiconductor manufacturing." [ The manufacture of
components or the creation of advanced processes or technology
within the semiconductor manufacturing and related equipment and
material supplier sector. ] Any of the following within the
semiconductor manufacturing and related equipment and material
supplier sector:
(1) The manufacture of components, including
semiconductor manufacturing, semiconductor wafer production,
semiconductor fabrication, semiconductor packaging,
manufacturing of semiconductors, manufacturing of
semiconductor manufacturing equipment or semiconductor
manufacturing equipment as defined in 26 CFR 1.48D-2
(relating to definitions) as of the effective date of this
paragraph.
(2) The creation of advanced processes or technology.
(3) The advanced testing and packaging of components.
Section 2. Section 1773-L(a) and (d)(2) of the act are
amended and subsection (d) is amended by adding a paragraph to
read:
Section 1773-L. Application and approval of tax credit.
(a) Determination of tax credit amount.--[ The] Except as
provided under paragraph (3), the annual tax credit amount may
be determined based upon any one or more of the following:
(1) No more than 2.5% of the capital investment.
(2) No more than 100% of tax withheld from employees and
paid under Article III or $20,000, whichever is less, for
each permanent job at the project facility.
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30 project facility in the prior calendar year.
(3) If the applicant is an early stage semiconductor
business, the applicant must have at least $3,000,000 in
research and development investment during the previous year.
* * *
(d) Availability of tax credits.--
* * *
(2) The department shall issue [ up to $10,000,000] a
minimum of $1,000,000 in a fiscal year to [ the qualified
taxpayer] qualified taxpayers engaged in semiconductor
manufacturing which first meets the qualifications to receive
a tax credit under this subarticle. The department shall not
exceed $8,000,000 in aggregate tax credits issued in one
year.
* * *
(3.1) The department shall issue a minimum of $100,000
in a fiscal year to an early stage semiconductor business. An
individual early stage semiconductor business may not receive
more than $1,000,000 in any fiscal year. An award may be for
up to five years. The department shall not exceed $2,000,000
in aggregate tax credits in one year.
Section 3. This act shall take effect in 60 days.
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