HARRISBURG – A new $5 million manufacturing tax credit, contained in legislation that State Sen. John Wozniak is introducing, will help create jobs and bolster the economy, he said today.
“Helping the manufacturing sector of our economy with tax credits will result in more jobs and commercial activity,” Wozniak said. “We can use tax credits to prime the economic pump and ignite new manufacturing activity.”
The legislation Wozniak is introducing would put into action the Manufacturing Tax Credit Program that was part of Gov. Tom Wolf’s budget plan.
“The tax credit will be disbursed to qualifying companies in the manufacturing sector that generate quality jobs,” Wozniak said.
Under the legislation, tax credits of up to 5 percent of new taxable payroll will be distributed to those manufacturers who increase their annual payroll by at least $1 million.
To qualify, the jobs must be full-time, offer health benefits and have wages comparable to the county average wage where the company is locating or expanding. The jobs must be maintained for five years.
The manufacturing sector represents more than 10 percent of Pennsylvania’s total employment. It is the third largest employer among industry groups in the state. A new study from the Center for Workforce Information and Analysis projects showed that Pennsylvania will lose more than 2,600 manufacturing jobs by 2020.
“We can do more to help Pennsylvania manufacturers compete in national and international markets,” Wozniak said. “Providing tax credits is one way to entice manufacturers to move here or have those that are already at work in Pennsylvania expand their operations.”
The senator said that he believes that the manufacturing tax credit will be featured during the discussion of this year’s state budget.