Legislation will be catalyst for economic growth, protect taxpayers
Senator Vogel announced today that he has introduced legislation designed to attract investment into the growing ethane supply market in Pennsylvania. The legislation is written as a way to encourage Shell and other ethylene producers and downstream manufacturers to locate their operations in Pennsylvania while at the same time protecting taxpayers.
“This legislation will show Shell and other manufacturers that Pennsylvania is open for business. The tax credit will be performance based and up for annual review by the legislature. This will balance the need to attract investment with a strong protection for taxpayers,” Vogel said.
The legislation is designed to attract natural gas ethane feedstock to stay in Pennsylvania, while encouraging manufacturers who use that feedstock to make everyday products to locate their operations in Pennsylvania. Tax credits differ from direct payments by allowing companies to reduce or eliminate their tax burden rather than using direct money from the taxpayers.
Rather than offering a set amount of available tax credits for a long period of time, Senator Vogel’s legislation would require that the amount of the tax credit shall be determined annually by the General Assembly, beginning in 2017.
“We owe it to the taxpayers to ask, is $66 million a year the right amount for this tax credit? Maybe so.” Vogel said. “But let’s make that determination. Let’s make sure Shell is going to come, and let’s make sure we protect the taxpayers. This is a once in a life-time opportunity for job creation, so let’s make sure the cracker plant gets built, and also ensure accountability measures are in place.”
“Anyone that thinks that this legislation is targeted only at Shell is thinking too small. I foresee the cracker facility as an anchor tenant that spurs investment throughout the Commonwealth. And that means more jobs and economic growth than western Pennsylvania has seen in generations. We should help put the people of Pennsylvania back to work,” Vogel added.
Pennsylvania has utilized tax credits to attract other industry clusters – including the Research and Development Tax Credit, which has helped create an industry cluster of pharmaceutical companies in Southeast Pennsylvania. Other examples include tax credits for alternative energy development, the film tax credit, and job creation tax credits.
CONTACT: Joe Weidner