Pennsylvania Rep. Kerry Benninghoff, a Republican representing Centre and Mifflin counties, has proposed a jobs bill that would allow relocating companies to keep 95 percent of the state personal income tax revenue they withhold on behalf of employees.
House Bill 2626, also known as Promoting Employment Across Pennsylvania, is modeled after a similar program in Kansas, according to a fact sheet from Benninghoff’s office. The state would keep the remaining 5 percent of PIT taxes and would see a state revenue increase due to the businesses locating in Pennsylvania, he said.
“By giving up one source of revenue, we will be gaining many more,” Benninghoff said in a statement. “We have nothing now, so we have nothing to lose and everything to gain. This bill would allow employers to keep, spend and invest more of their own money in our communities.”
Relocating companies would pay all other applicable taxes, including sales and use taxes, corporate net income, local property taxes and local PIT taxes, according to the bill.
Other provisions of the bill include:
• Employers would be required to hire minimum numbers of people between five and 15 depending on the county where they relocate.
• Wages paid to employees compared with average wages of the county where they hire would determine the number of years a company is eligible for the incentive.
• The state Department of Community and Economic Development would have authority to review and approve incentive applications.
• Eligibility would require a for-profit entity relocating a facility, office, department or other operation.
• The company must provide health insurance to full-time employees with the company paying 50 percent of the premium.
Retail stores, public administration and education services, utility companies, food-service companies, entities filing or intending to file for bankruptcy, and any company delinquent in federal, state or local taxes would not be eligible, according to the bill.