Benninghoff Introduces Bill to Bring Jobs to PA from Other States
9/24/2012
HARRISBURG – At a news conference today at the state Capitol in Harrisburg, Rep Kerry Benninghoff (R-Centre/Mifflin) announced he has introduced legislation aimed at attracting out-of-state employers to relocate to Pennsylvania and bring good-paying jobs with them.

“If this bill is not signed into law, our communities will lose out on millions of dollars in potential new revenues and our workers will lose thousands of potential new jobs,” Benninghoff said. “Most of us are all too familiar with the word ‘outsourcing.’ This bill is about ‘in-sourcing’ and bringing new jobs to Pennsylvania.”

Benninghoff’s House Bill 2626 – known as “PEP!” or Promoting Employment across Pennsylvania – would provide a state tax incentive to certain companies that relocate from another state to Pennsylvania. Qualifying employers would be able to keep 95 percent of the state Personal Income Tax revenue they withhold on behalf of their employees. The other 5 percent would go to the Commonwealth.

“Right now, the Commonwealth, local governments and school districts aren’t receiving any tax revenues from these companies because they aren’t here yet,” Benninghoff said. “By giving up one source of revenue, we will be gaining many more. 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.”

Newly relocated employers would still be responsible for paying applicable state Corporate Net Income tax, Capital Stock and Franchise tax and sales tax in addition to local taxes, including personal income taxes and property taxes.

In addition, if the employer files his or her taxes as a small business not subject to the Corporate Net Income Tax, he or she would still have to pay the state Personal Income Tax on earnings from the business.

“This tax incentive would only apply to Personal Income Tax withholdings the employer would ordinarily remit on behalf of employees,” Benninghoff said. “If the new company files its taxes as a small business, it would still have to pay its own Personal Income Tax to the Commonwealth.”

The bill would establish guidelines concerning the number of jobs that would need to be created, the level of wages that would need to be paid to workers and the quality of health care and other benefits that would have to be provided to workers in order for a business to qualify for the tax incentive.

“This bill is about bringing in good-paying, sustainable jobs for Pennsylvania workers,” Benninghoff said. “We’re not talking about offering a tax break to an international retailer that opens a new store down at the local mall and pays its workers minimum wage. This bill is geared toward attracting family sustaining jobs with good benefits that will help grow Pennsylvania’s economy.”

Benninghoff was joined at the news conference by Vern Squier, president and CEO of the Chamber of Business & Industry of Centre County. Squier put Benninghoff in touch with economic development professionals from Kansas, which already has a law similar to the one he is trying to pass in Pennsylvania.

Benninghoff’s legislation was introduced on Sept. 5, and referred to the House Finance Committee, which he chairs. Following today’s news conference, the committee held a public hearing to gather testimony about Benninghoff’s bill. The legislation is scheduled to come up for a vote at the Finance Committee meeting scheduled at 10 a.m. on Tuesday, Sept. 25. Video coverage of that meeting will be streamed live that day on Benninghoff’s website at www.RepBenninghoff.com.

PEP! Fact Sheet

State Representative Kerry Benninghoff
171st District, Pennsylvania House of Representatives
Contact: Dan Massing
dmassing@pahousegop.com
717.772.9845
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