State Senate increases of cap of Local Resource Manufacturing Tax Credit

Oct. 28—WILKES-BARRE — Sen. John Yudichak and Sen. Lisa Baker this week announced that new jobs and more investment will be coming to northeastern Pennsylvania after the Senate voted to create and expand tax credit programs to support targeted investments in key industries.

House Bill 1059 would make new resources available for job growth under the newly established Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credit program.

The program will be made up of four components to attract major new investments to Pennsylvania communities.

A key component of the House Bill 1059 legislation is the increase of the cap of the Local Resource Manufacturing Tax Credit Program from $26.6 million to $56.6 million annually, while ensuring tax credits remain available for construction of a smaller project facility in the near future.

The new tax credits are intended to continue to build on Pennsylvania's success in bringing high-quality jobs to the state.

Act 66, the Local Resource Manufacturing Tax Credit Program was sponsored by Sen. Yudichak, I-Swoyersville, and Rep. Aaron Kaufer, R-Kingston, and was enacted into law in 2020 to provide tax credits for petrochemical and fertilizer manufacturing within the Commonwealth.

With the passage of House Bill 1059, the Local Resource Manufacturing Tax Credit legislation will now fall under the PA EDGE package and will provide $115 million in new tax credits annually and features the following parameters:

—Expands the existing tax credit from $26,666,668 to $56,666,668 for petrochemical and fertilizer manufacturing.

—The taxpayer that qualifies for the smaller tax credit must make a $400 million capital investment and create 800 new and permanent jobs.

—The taxpayer that qualifies for the larger tax credit must make a $1 billion capital investment and create 1,800 new and permanent jobs.

"The package of tax credit expansion bills passed today will help to continue to build on the historic economic growth we are experiencing here in northeastern Pennsylvania and will set the stage for transformative economic growth across a wide array of industries throughout the Commonwealth," Yudichak said. "Specifically, the $30 million increase of the cap with the Local Resource Manufacturing Tax Credit Program will help secure good-paying and family-sustaining jobs for Pennsylvanians. The PA EDGE legislation passed today invests in the working families of Pennsylvania."

Even before the passage of the expansion of the program, the Local Resource Manufacturing Tax Credit Program was already making a significant impact as it led to Nacero Inc. committing to build a new $6 billion lower carbon gasoline manufacturing facility in northeastern Pennsylvania.

"This legislation is one more step in the direction of bringing a generational investment to Luzerne County," Kaufer said. "Nacero offers the single greatest economic opportunity our region has ever seen and will make northeastern Pennsylvania a major hub in the clean energy revolution."

"This tax credit program is an exciting initiative that represents a tremendous opportunity for continued economic advancement and job expansion across northeastern Pennsylvania," added Baker, R-Lehman Township. "We must ensure good, family-sustaining jobs are accessible throughout our region, while pursuing new ways to foster greater workforce development."

Warren Faust, President, Northeast Pennsylvania Building and Construction Trades Council, said, the tax credit also advances core labor issues, like prevailing wage rates, and positions Pennsylvania to secure more than 200 million construction hours for the Pennsylvania Building Construction Trade Unions on projects that will transform Pennsylvania communities with thousands of jobs."

Yudichak, Baker and Kaufer said State Senators David Argall, John Gordner and Marty Flynn and State Representatives Robert Schnee, Eddie Day Pashinski, Mike Carroll, Karen Boback and Gerald Mullery were all instrumental in the passage of the PA EDGE legislation.

Kaufer's crime victims access legislation awaits governor's signature

Rep. Aaron Kaufer, R-Kingston, announced that his legislation, which focuses on the rights of crime victims, is on its way to Gov. Tom Wolf's desk for his signature after its final approval by the House of Representatives.

Kaufer, a recipient of the 2019 Guardian of Victims' Rights award, sponsored this bill to address the blatant inequities between offenders and their victims.

"At a time in our nation and state history where crime is up, it's high time that the scales of justice balance to the rights of crime victims," Kaufer said. "This legislation will give crime victims access to information that was once unavailable to them should there be a need to bring forth a civil lawsuit."

House Bill 2525 makes it easier for crime victims to obtain relevant information learned by law enforcement during the investigation of a crime to possibly use that information in subsequent civil legal actions to recover damages for their injuries.

"I would also like to thank Sen. Lisa Baker for her advocacy on this important issue," Kaufer said. "Her support was crucial to the passage of this legislation."

"Rep. Kaufer's bill significantly assists district attorneys' offices in removing barriers that historically have frustrated crime victims from attaining justice in civil court," said Sam Sanguedolce, Luzerne County district attorney. "His legislation recognizes the importance of bipartisan efforts to help victims be made whole because true justice for crime victims often does not end with a criminal conviction. Where victims are entitled to monetary relief, we, as district attorneys, should be permitted to share evidence that would lead to such recovery. Importantly, this bill also allows us to keep confidential information that would be harmful to victims, investigations and the community at large were it to be released. On behalf of law enforcement and prosecutors statewide, I would like to express my gratitude to Rep. Kaufer and his colleagues for their hard work on this vital piece of legislation."

Once a bill reaches the governor's desk, he has 10 days to sign it into law, veto it or allow it to become law without his signature. If signed, House Bill 2525 would take effect in 180 days.

Pashinski, Mullery: $5.35M RACP grants awarded for local improvement projects

Four projects throughout Luzerne County have received funding approval from the State's Redevelopment Assistance Capital Program, totaling $5.35 million according to state Reps. Eddie Day Pashinski and Gerald Mullery.

"Each of these projects is a worthwhile investment in the economic success and quality of life in our communities," said Pashinski, D-Wilkes-Barre. "These projects, whether it's improving the agriculture industry, improving higher education facilities or promoting local arts, are all not only important, but will have a lasting impact on our region."

"Investments like these are essential to keep Luzerne County a thriving place for businesses to boom and families to live," said Mullery, D-Newport Township. "At a time when our region's economy needs a boost, I am happy to see these long-term investments come to our area."

According to Pashinski and Mullery, the following organizations are receiving funding in their districts:

—Wilkes University — $2.5 million for making ADA-compliant renovations to the Dorothy Dickson Darte Center.

—Upward Farms — $1 million for the purchase and installation of plumbing, mechanical and electrical upgrades to the base building, and purchase and installation of the Aquaculture system.

—Wyoming Valley Art League — $750,000 for Circle Center for the Arts renovation and addition projects.

—IBEW Local 163 JATC — $600,000 for increasing interior and exterior space to meet the growing demand of the electrical apprenticeship program.

—King's College — $500,000 for renovations at the Corgan Library.

Baker working to simplify grantor trust process for Pennsylvania taxpayers

Legislation to simplify and streamline the process for irrevocable grantor trusts was unanimously passed by the Pennsylvania Senate, according to Sen. Lisa Baker, R-Lehman Township, who introduced the measure.

An irrevocable grantor trust is a type of trust that cannot be modified, amended, or terminated, without the permission of the grantor's beneficiaries. These types of trusts are often established by someone as a means of reducing taxes and protecting property.

In many cases the grantor, who establishes the trust, wants to pay the income taxes, so that the trust's beneficiaries are not negatively impacted. Senate Bill 1321 would remove the present barrier, allowing grantors to meet this obligation if they choose to do so.

"This option has been available at the federal level for decades, and we are the only state that does not permit the grantor of a trust to pay any income taxes that may be due," Baker said. "It is our hope that this legislation will increase our competitiveness and encourage establishment of trusts here in Pennsylvania while simplifying the process for taxpayers."

Baker noted that the bill was developed with and is supported by the Joint State Government Commission's Advisory Committee on Decedents' Estates Laws.

Senate Bill 1321 has been sent to the House of Representatives for consideration.

Boback's bill to rename bridge in honor of veterans, first responders

A bill sponsored by Rep. Karen Boback, R-Harveys Lake, to rename a Wyoming County bridge in honor of local veterans and first responders was sent to the governor's desk for his signature after its unanimous final approval by the House of Representatives on Tuesday.

"As majority chairman of the House Veterans Affairs and Emergency Preparedness Committee, I have a great understanding of the sacrifices made by our veterans and first responders," Boback said. "Now everyone who travels over this bridge will forever be reminded of their contributions to our country and communities."

Boback's measure designates the bridge carrying State Route 29 over the Susquehanna River in Tunkhannock Borough and Eaton Township, Wyoming County, as the "Wyoming County Veteran and First Responder Bridge of Valor."

The bill also directs PennDOT to erect and maintain signs in both directions displaying the new name of the bridge.

Boback's legislation was one of two dozen bridge or highway renaming proposals included in House Bill 2637.

Reach Bill O'Boyle at 570-991-6118 or on Twitter @TLBillOBoyle.

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