Pennsylvania 2021-2022 Regular Session Status: In Committee Bipartisan · 3 R · 1 D cosponsors

SB 288 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in corporate net income tax, further providing for manufacturing innovation and reinvestment deduction.

Last action — Re-referred to APPROPRIATIONS

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2021-2022 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

119 added · 53 removed

Plain-language change summary

The recent changes to Bill SB 288 significantly lower the required private capital investment from $60 million to just $1 million to qualify for the manufacturing innovation and reinvestment deduction. This adjustment aims to encourage smaller businesses to invest in new or refurbished manufacturing capacity. By making it easier for these businesses to access tax deductions, the bill seeks to stimulate growth, job creation, and innovation in the manufacturing sector. Such a change could have a positive impact on local economies by supporting smaller manufacturers.

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PRINTER'S NO.
PRIOR PRINTER'S NO.
276 THE GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.
276 PRINTER'S NO.
800 THE GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.
WARD AND BOSCOLA, FEBRUARY 26, 2021 REFERRED TO FINANCE, FEBRUARY 26, 2021 AN ACT Ameact relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon;
WARD AND BOSCOLA, FEBRUARY 26, 2021 SENATOR HUTCHINSON, FINANCE, AS AMENDED, MAY 25, 2021 AN ACT Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon;
providing procedures for the payment, collection, administration and enforcement thereof;
providing procedures for the payment, for tax credits in certain cases;
providing for tax credits in certain cases;
conferring powers andviding imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities;
conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities;
prescribing crimes, offenses and penalties," in corporate net income tax, further providing for manufacturing innovation and reinvestment deduction.
prescribing crimes, offenses and for manufacturing innovation and reinvestment deduction.ng The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:
The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:
Section 407.7(a) and (d)(1.1) and (1.2) of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended or added June 28, 2019 (P.L.50, No.13), are amended to read:
Section 407.7(a) and (d)(1.1) and (1.2) of the <-- act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended or added June 28, 2019 (P.L.50, No.13), are amended to read:
SECTION 1.
SECTION 407.7(A) AND (D) OF THE ACT OF MARCH 4, <-- 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, ARE AMENDED AND THE SECTION IS AMENDED BY ADDING A SUBSECTION TO READ:
Manufacturing Innovation and Reinvestment Deduction.--(a) In order to be eligible to receive a manufacturing innovation and reinvestment deduction, a taxpayer must demonstrate to the department a private capital investment in excess of [sixty million dollars ($60,000,000)] one hundred million dollars ($100,000,000) for the creation of new or refurbished manufacturing capacity within three years of a designated start date.
Manufacturing Innovation and Reinvestment Deduction.--(a) In order to be eligible to receive a manufacturing innovation and reinvestment deduction, a taxpayer must demonstrate to the department a private capital investment in excess of [sixty million dollars ($60,000,000)] one hundred <-- million dollars ($100,000,000) ONE MILLION DOLLARS ($1,000,000) <-- for the creation of new or refurbished manufacturing capacity within three years of a designated start date.
* * * (d) (1.1) If the private capital investment is in excess of [sixty million dollars ($60,000,000), but not more than one hundred million dollars ($100,000,000)] one million dollars ($1,000,000), but not more than ten million dollars ($10,000,000), the maximum allowable deduction shall be equal to [thirty-seven and one-half] ten per cent of the private capital investment utilized in the creation of new or refurbished manufacturing capacity[.
* * * <-- (d) (1.1) If the private capital investment is in excess of [sixty million dollars ($60,000,000), but not more than one hundred million dollars ($100,000,000)] one million dollars ($1,000,000), but not more than ten million dollars ($10,000,000), the maximum allowable deduction shall be equal to [thirty-seven and one-half] ten per cent of the private capital investment utilized in the creation of new or refurbished manufacturing capacity[.
A taxpayer may utilize the deduction in an amount not to exceed five per cent of the private capital investment utilized in the creation of new or refurbished manufacturing capacity in any one year of the succeeding ten tax years immediately following the department's 20210SB0288PN0276 - 2 - satisfaction determination and the execution of a satisfaction commitment letter, up to the maximum allowable deduction.] for a period of five years.
A taxpayer may utilize the 20210SB0288PN0800 - 2 - deduction in an amount not to exceed five per cent of the private capital investment utilized in the creation of new or refurbished manufacturing capacity in any one year of the succeeding ten tax years immediately following the department's satisfaction determination and the execution of a satisfaction commitment letter, up to the maximum allowable deduction.] for a period of five years.
* * * Section 2.
* * * (A.1) THE QUALIFIED MANUFACTURING INNOVATION AND <-- REINVESTMENT DEDUCTION SHALL BE APPLIED TO A TAXPAYER'S TAXABLE INCOME TO REDUCE THE TAXPAYER'S LIABILITY FOLLOWING THE ALLOCATION AND APPORTIONMENT OF INCOME.
* * * (D) (1.1) IF THE PRIVATE CAPITAL INVESTMENT IS IN EXCESS OF ONE MILLION DOLLARS ($1,000,000), BUT NOT MORE THAN TEN MILLION DOLLARS ($10,000,000), THE MAXIMUM ALLOWABLE DEDUCTION SHALL BE EQUAL TO SIXTY-TWO AND ONE-HALF PER CENT OF THE PRIVATE CAPITAL INVESTMENT UTILIZED IN THE CREATION OF NEW OR REFURBISHED MANUFACTURING CAPACITY.
A TAXPAYER MAY UTILIZE THE DEDUCTION IN AN AMOUNT NOT TO EXCEED TWELVE AND ONE-HALF PER CENT OF THE PRIVATE CAPITAL INVESTMENT UTILIZED IN THE CREATION OF NEW OR REFURBISHED MANUFACTURING CAPACITY IN ANY ONE YEAR OF THE SUCCEEDING TEN TAX YEARS IMMEDIATELY FOLLOWING THE DEPARTMENT'S SATISFACTION DETERMINATION AND THE EXECUTION OF A SATISFACTION COMMITMENT LETTER, UP TO THE MAXIMUM ALLOWABLE DEDUCTION.
20210SB0288PN0800 - 3 - (1.2) IF THE PRIVATE CAPITAL INVESTMENT IS IN EXCESS OF TEN MILLION DOLLARS ($10,000,000), BUT NOT MORE THAN SIXTY MILLION DOLLARS ($60,000,000), THE MAXIMUM ALLOWABLE DEDUCTION SHALL BE EQUAL TO FIFTY PER CENT OF THE PRIVATE CAPITAL INVESTMENT UTILIZED IN THE CREATION OF NEW OR REFURBISHED MANUFACTURING CAPACITY.
A TAXPAYER MAY UTILIZE THE DEDUCTION IN AN AMOUNT NOT TO EXCEED TEN PER CENT OF THE PRIVATE CAPITAL INVESTMENT UTILIZED IN THE CREATION OF NEW OR REFURBISHED MANUFACTURING CAPACITY IN ANY ONE YEAR OF THE SUCCEEDING TEN TAX YEARS IMMEDIATELY FOLLOWING THE DEPARTMENT'S SATISFACTION DETERMINATION AND THE EXECUTION OF A SATISFACTION COMMITMENT LETTER, UP TO THE MAXIMUM ALLOWABLE DEDUCTION.
[(1.1)] (1.3) IF THE PRIVATE CAPITAL INVESTMENT IS IN EXCESS OF SIXTY MILLION DOLLARS ($60,000,000), BUT NOT MORE THAN ONE HUNDRED MILLION DOLLARS ($100,000,000), THE MAXIMUM ALLOWABLE DEDUCTION SHALL BE EQUAL TO THIRTY-SEVEN AND ONE-HALF PER CENT OF THE PRIVATE CAPITAL INVESTMENT UTILIZED IN THE CREATION OF NEW OR REFURBISHED MANUFACTURING CAPACITY.
A TAXPAYER MAY UTILIZE THE DEDUCTION IN AN AMOUNT NOT TO EXCEED SEVEN AND ONE-HALF PER CENT OF THE PRIVATE CAPITAL INVESTMENT UTILIZED IN THE CREATION OF NEW OR REFURBISHED MANUFACTURING CAPACITY IN ANY ONE YEAR OF THE SUCCEEDING TEN TAX YEARS IMMEDIATELY FOLLOWING THE DEPARTMENT'S SATISFACTION DETERMINATION AND THE EXECUTION OF A SATISFACTION COMMITMENT LETTER, UP TO THE MAXIMUM ALLOWABLE DEDUCTION.
[(1.2)] (1.4) IF THE PRIVATE CAPITAL INVESTMENT EXCEEDS ONE HUNDRED MILLION DOLLARS ($100,000,000), THE MAXIMUM ALLOWABLE DEDUCTION SHALL BE EQUAL TO TWENTY-FIVE PER CENT OF THE PRIVATE CAPITAL INVESTMENT UTILIZED IN THE CREATION OF NEW OR REFURBISHED MANUFACTURING CAPACITY.
A TAXPAYER MAY UTILIZE THE 20210SB0288PN0800 - 4 - DEDUCTION IN AN AMOUNT NOT TO EXCEED FIVE PER CENT OF THE PRIVATE CAPITAL INVESTMENT UTILIZED IN THE CREATION OF NEW OR REFURBISHED MANUFACTURING CAPACITY IN ANY ONE YEAR OF THE SUCCEEDING TEN TAX YEARS IMMEDIATELY FOLLOWING THE DEPARTMENT'S SATISFACTION DETERMINATION AND THE EXECUTION OF A SATISFACTION COMMITMENT LETTER, UP TO THE MAXIMUM ALLOWABLE DEDUCTION.
(3) A TAXPAYER CANNOT USE THE DEDUCTION TO REDUCE ITS TAX LIABILITY BY MORE THAN FIFTY PER CENT OF THE TAX LIABILITY UNDER THIS ARTICLE FOR THE TAXABLE YEAR.
THE DEDUCTION IS NONTRANSFERABLE AND ANY UNUSED PORTION IN A TAX YEAR SHALL EXPIRE AT THE END OF THE CORRESPONDING TAX YEAR.
Section 2.
20210SB0288PN0276 - 3 -
20210SB0288PN0800 - 5 -
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Action History

  1. Re-referred to APPROPRIATIONS

  2. Second consideration

  3. First consideration

  4. PN 0800 Reported as amended

  5. PN 0276 Referred to FINANCE

Sponsors

Sponsorship breakdown

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1 sponsors · 5 co-sponsors · 247 not signed on · 2 voted No

Sponsors (1)

  • Mensch

Co-sponsors (5)

Not signed on (247)

247 members have not signed on to this bill.

Show all 247 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Committee vote (FINANCE): Reported as Amended

Passed 8 Yea · 2 Nay · 1 Other
Party YeaNayPresentNot Voting
Republican 5000
Unaffiliated 1001
Democratic 2200
Total 8201
% of votes cast 73%18%0%9%
How each member voted (11)
Member Party Vote
BROWNE — Yea
CORMAN — Not Voting
Art Haywood Democratic Nay
Katie J. Muth Democratic Nay
Vincent J. Hughes Democratic Yea
Wayne D. Fontana Democratic Yea
David G. Argall Republican Yea
Judy Ward Republican Yea
Kristin Phillips-Hill Republican Yea
Michele Brooks Republican Yea
Scott E. Hutchinson Republican Yea

Official roll call →

Subjects

taxation finance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 288?
SB 288 is sponsored by Mensch, Camera Bartolotta (Republican), Regan, Patrick J. Stefano (Republican), Judy Ward (Republican), and Lisa M. Boscola (Democratic).
What is the current status of SB 288?
This bill died with 2021-2022 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 288?
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Last checked for changes 3 months ago · updated continuously

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