Pennsylvania 2025-2026 Regular Session

Pennsylvania Senate Bill SB440

Introduced
3/21/25  

Caption

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, for eligibility, for application and approval of tax credit and for sale or assignment.

Impact

The implementation of SB 440 is expected to boost the state’s economy significantly by attracting investment in high-tech industries. The bill outlines a framework where qualified taxpayers engaged in semiconductor or biomedical sectors can access up to $20 million in tax credits each fiscal year. To qualify, companies must demonstrate substantial capital investments and job creation, which will likely stimulate local economies and address increasing demand for skilled labor and services in these burgeoning fields.

Summary

Senate Bill 440 pertains to the Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits focused on encouraging semiconductor manufacturing and biomedical manufacturing and research. The bill proposes modifications to existing definitions, eligibility requirements, application processes, and the assignment of tax credits to businesses that meet specific criteria. The core objective is to foster growth in these critical sectors through substantial fiscal incentives, creating job opportunities and enhancing technological capabilities within the state.

Sentiment

The overall sentiment surrounding SB 440 is largely positive among legislators who advocate for increased economic activity and innovation. Supporters argue that the bill will not only enhance the state's competitive position in the manufacturing landscape but also provide essential support for budding companies and research institutions. Conversely, some concerns about equitable tax benefits and the long-term effectiveness of such tax incentives may arise, especially from critics who question whether these funds should be allocated to specific industries over others.

Contention

There remain notable discussions regarding the criteria for qualification as a 'qualified taxpayer,' particularly the thresholds for job creation and capital investment, which some may find overly stringent. This could potentially exclude smaller firms or early-stage companies from accessing the benefits intended to foster broad economic development and innovation. As the bill progresses, further scrutiny will focus on how effectively it balances support for large corporations with the needs of smaller, emerging businesses within Pennsylvania's diverse economy.

Companion Bills

No companion bills found.

Previously Filed As

PA HB2565

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.

PA HB2402

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, further providing for definitions and for application and approval of tax credit, providing for sustainable aviation fuel and further providing for definitions.

PA HB1219

In personal income tax, further providing for classes of income and for special tax provisions for poverty and providing for alternative special tax provisions for poverty; in corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax, for consolidated reports and for manufacturing innovation and reinvestment deduction; in realty transfer tax, further providing for transfer of tax; in tax credit and tax benefit administration, further providing for definitions; in entertainment production tax credit, further providing for definitions, for credit for qualified film production expenses, for carryover, carryback and assignment of credit and for limitations; in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for biotechnology; in neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit; providing for expanded neighborhood improvement zones; in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for credit for child and dependent care employment-related expenses; providing for Public Transportation Trust Fund; and, in general provisions, further providing for underpayment of estimated tax, for method of filing and for allocation of tax credits.

PA HB1215

In regional clean hydrogen hubs, further providing for definitions, for eligibility and for application and approval of tax credit, providing for qualifying clean hydrogen uses and further providing for guidelines and regulations.

PA SB334

In research and development tax credit, further providing for limitation on credits; and providing for Angel Investment Tax Credit.

PA SB497

Providing for advanced manufacturing facilities and infrastructures through business partnerships with State-related institutions; establishing the Max Manufacturing Initiative Fund and Max Manufacturing Endeavor Loan Fund; providing for prevailing wage; and imposing powers and duties on the Department of Community and Economic Development.

PA HB2132

Establishing the Pennsylvania-Ireland Trade Commission and the Pennsylvania-Ireland Trade Commission Fund; imposing duties on the Department of Community and Economic Development; providing for the Entertainment Economic Enhancement Program;

PA SB815

In personal income tax, further providing for imposition of tax and for taxability of estates, trusts and their beneficiaries; and, in corporate net income tax, further providing for manufacturing innovation and reinvestment deduction.

PA SB1272

In manufacturing and investment tax credit, further providing for definitions relating to rural jobs and investment tax credit, for rural growth funds, for claiming the tax credit and for revocation of tax credit certificates.

PA HB2414

In tax credits relating to beginning farmers, further providing for scope of article, for definitions, for beginning farmer management tax credit and for approval of tax credit.

Similar Bills

NJ AR141

Urges Congress to reconcile United States Innovation and Competition Act and American COMPETES Act to expedite funding for semiconductor production and innovation.

PA HB2565

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.

PA HB1267

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.

TX HB5174

Relating to the establishment and administration of the Texas Semiconductor Innovation Consortium.

TX SB2288

Relating to the creation of the Texas semiconductor innovation consortium and fund.

TX HR1993

Urging Congress to pass the "CHIPS for America Act" or any legislation that substantially increases the United States' investments in semiconductor manufacturing and research.

GA HB1440

Richard H. Smith Georgia CHIPS Advancement in Research and Economic Development Act; enact

TX HB4850

Relating to programs to promote economic development in the Office of the Governor and to the repeal of the governor's broadband development council.