State House Approves Benninghoff Jobs Bill
10/15/2012

HARRISBURG – The state House today approved with bipartisan support a bill introduced by Rep. Kerry Benninghoff (R-Centre/Mifflin) that would promote job creation in Pennsylvania and bring in revenues for the Commonwealth and local governments without increasing taxes.

 

“My hope is that the Senate will act swiftly to consider this important legislation,” Benninghoff.  “Failing to enact this bill into law would mean a reduction in potential jobs and the loss of potential revenues for our Commonwealth, municipal governments and our schools.  We simply can’t afford not to take action on this job-creating legislation.”

 

Benninghoff’s House Bill 2626 – better known as PEP!, or Promoting Employment across Pennsylvania – would provide a state tax incentive for a limited time to out-of-state employers that relocate to the Commonwealth and bring good-paying jobs with them.  The bill would provide the same tax incentive to employers already located in Pennsylvania that create new, good-paying jobs.

 


Under the bill, 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.  The money retained by the employers would be used solely to create good-paying, family-sustaining jobs.

 

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.

 

Existing Pennsylvania companies that create new jobs would continue to pay all relevant taxes for their current employees.  The PIT incentive would only apply to newly created jobs.

 

“The legislation establishes guidelines to ensure these are good-paying jobs with benefits for our workers,” Benninghoff said.  “Adopting PEP! could help jumpstart our economy.  If PEP! is not signed into law, our workers may lose the ability to obtain one of these newly created jobs and we will not be able to hire the new teachers, police officers and other public servants the new revenues could support.”

 

Benninghoff’s legislation now heads to the Senate for consideration.

 

State Representative Kerry Benninghoff

171st District, Pennsylvania House of Representatives

Media Contact: Dan Massing

dmassing@pahousegop.com

717.772.9845

KerryBenninghoff.com

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