Signed by Governor Tom Corbett

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that authorizes qualified companies to retain 95 percent of employees' income taxes.

Highlights:

• Authorizes a qualified company to retain 95 percent of a new employee’s income tax once the company enters into an agreement with the Department of Revenue (Secs. 301, 302 & 304).

• Defines a “qualified company” as one that meets certain criteria, including but not limited to, the following (Sec. 103):
• It is a for-profit corporation, partnership, or other entity;
• It agrees to create at least 250 new jobs in Pennsylvania within a specified period of time; and
• It provides health insurance coverage to full-time employees and pays at least 50 percent of the health insurance premium.

• Specifies that the qualified company can retain 95 percent of a new employee’s income tax for the following time periods (Sec. 302):
• 7 years if new employees are compensated at 100 percent of the county average wage;
• 8 years if new employees are compensated at 110 percent of the county average wage;
• 9 years if new employees are compensated at 120 percent of the county average wage; and
• 10 years if new employees are compensated at 140 percent of the county average wage.

• Requires a qualified company to create 100 new jobs within 2 years of entering into the agreement with the Department of Revenue (Sec. 301).

• Limits the annual aggregate amount of new employees’ income taxes that a qualified company can retain to no more than $5 million (Sec. 313).

• Prohibits the Department of Revenue from entering into an agreement authorizing a qualified company to retain new employee income taxes with a qualified company after January 1, 2018 (Sec. 314).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that authorizes qualified companies to retain 95 percent of employees' income taxes.

Highlights:

• Authorizes a qualified company to retain 95 percent of a new employee’s income tax once the company enters into an agreement with the Department of Revenue (Secs. 301, 302 & 304).

• Defines a “qualified company” as one that meets certain criteria, including but not limited to, the following (Sec. 103):
• It is a for-profit corporation, partnership, or other entity;
• It agrees to create at least 250 new jobs in Pennsylvania within a specified period of time; and
• It provides health insurance coverage to full-time employees and pays at least 50 percent of the health insurance premium.

• Specifies that the qualified company can retain 95 percent of a new employee’s income tax for the following time periods (Sec. 302):
• 7 years if new employees are compensated at 100 percent of the county average wage;
• 8 years if new employees are compensated at 110 percent of the county average wage;
• 9 years if new employees are compensated at 120 percent of the county average wage; and
• 10 years if new employees are compensated at 140 percent of the county average wage.

• Requires a qualified company to create 100 new jobs within 2 years of entering into the agreement with the Department of Revenue (Sec. 301).

• Limits the annual aggregate amount of new employees’ income taxes that a qualified company can retain to no more than $5 million (Sec. 313).

• Prohibits the Department of Revenue from entering into an agreement authorizing a qualified company to retain new employee income taxes with a qualified company after January 1, 2018 (Sec. 314).

Full Bill Text