House Committee Approves Benninghoff Job-Attraction Bill
9/25/2012
HARRISBURG – The House Finance Committee this morning approved a bill introduced by Rep. Kerry Benninghoff (R-Centre/Mifflin) that would attract out-of-state employers to relocate to Pennsylvania and create family sustaining jobs in the Commonwealth.

“For the sake of every worker who doesn’t have a job in the Commonwealth, this bill needs to move swiftly through the legislative process,” said Benninghoff, who serves as chairman of the House Finance Committee and introduced his legislation – known as PEP! (Promoting Employment across Pennsylvania) – at a news conference on Monday. “If we fail to enact PEP!, workers will lose out on thousands of potential new jobs and communities will have to go without the millions of dollars in new revenues it could produce. If the Commonwealth does not adopt PEP!, it could mean fewer teachers in our classrooms, fewer police officers protecting our communities and fewer programs for those in need.”

Benninghoff’s PEP! legislation – House Bill 2626 – would provide a state tax incentive for a limited time 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 (PIT) revenue they withhold on behalf of their employees. The other 5 percent would go to the Commonwealth.

Companies that relocate to Pennsylvania would still pay applicable state Corporate Net Income Tax (CNIT), Capital Stock and Franchise tax and sales tax in addition to local taxes, including personal income taxes and property taxes.

Small employers, many of whom pay the state PIT instead of the CNIT on their earnings, would still have to do so.

“PEP! represents a departure from the old system where politicians took money from working families through taxes and handed it out to huge corporations,” Benninghoff said. “PEP! would allow local companies to keep, save and invest dollars in their own operations that won’t exist in the first place if we don’t enact this initiative.”

Benninghoff’s legislation now heads to the full state House of Representatives for consideration.

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