Wozniak: New Manufacturing, Coal Tax Credits Approved

Harrisburg, July 15, 2016 − Tax credits designed to promote the use of coal refuse plus a new tax credit to spur manufacturing and create jobs were included as a part of the recently approved revenue package (House Bill 1198, Act 84), state Sen. John N. Wozniak (D-Cambria/Bedford/Clearfield) said today.

The tax credits for using waste coal as fuel at energy generation facilities will help support the industry and protect jobs, Wozniak said. The coal industry is an important part of the economic mix of our area and I was pleased that the tax credits were included in the revenue package.

Under the provisions of the new law, waste coal electric generation facilities that use coal refuse as a fuel will be eligible for a $4 per ton tax credit. There will be $7.5 million in credits available this year. In 2017-18, the amount of the tax credit is increased to $10 million. The total amount of credits available for each facility is capped at $2.22 million per year.

Wozniak said that a new manufacturing tax credit will go into effect beginning in the 2017-2018 fiscal year.   Manufacturing companies who pledge to maintain an increase in payroll of at least $1 million for five years could receive a tax credit of up to 5 percent of the increase.

This new manufacturing tax credit is another tool that can be used to help bolster manufacturing jobs, Wozniak said. We have to find ways to build our manufacturing base as our economy transitions.

Wozniak said he introduced the manufacturing tax credit as Senate Bill 112. It was part of an initiative to help manufacturing offered by Gov. Tom Wolf.

Manufacturing accounts for more than 10 percent of total employment in Pennsylvania, according to report from the National Governors Association. The Center for Workforce Information and Analysis projects that Pennsylvania will lose 2,600 manufacturing jobs by 2020.