2011/12 budget reduces the tax burden on job creators
- Capital Stock and Franchise Tax Phase Out (Will be eliminated in 2014) Saving more than 100,000 job creators – $70 million
- Film Tax Credit ($60 million) Helps Pennsylvania attract jobs and bring money from outside of the Commonwealth into our economy. Since the program began in July 2007, $768 million has been spent by the film industry helping to account for $1.2 billion in economic activity and 10,000 jobs.
- Research & Development Tax Credit ($55 million) R & D tax credit encourages innovation and competition 38% increase in this year’s budget over last year when 500 companies took advantage of the R & D tax credit Pennsylvania ranks #4 in Bioscience R & D expenditures resulting in $1.5 Billion invested in our economy
- Job Creation Tax Credit ($10 million) Provides an incentive for companies to locate and expand in Pennsylvania and rewards them for creating jobs.
Last year, the JCTC resulted in the retention of 20,345 jobs, the creation
of almost 5,800 new jobs and an investment of $887.5 million in Pennsylvania .
- 100 Percent Bonus Depreciation
Applies this Federal business tax deduction, supported by President Obama, to Pennsylvania businesses ‘
Allows businesses to temporarily deduct 100% of their investments to spur economic growth and job creation
This budget retools economic development in Pennsylvania because Harrisburg doesn’t create jobs, the private sector does.
Department of Community and Economic Development (DCED)
- Streamlines incentive programs at DCED and takes a more regional approach to job creation
- DCED will invest in economic development/job creation programs that will
Assist small businesses
Encourage regional cooperation in economic development projects
Provide grants for job creation and retention as well as infrastructure and
o Eliminates WAMS
Governor Corbett promised to eliminate the hundreds of millions of dollars spent every year at the discretion of the legislature and the governor with little oversight or accountability