Posted: | January 14, 2025 12:09 PM |
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From: | Senator Steven J. Santarsiero and Sen. Christine M. Tartaglione, Sen. John I. Kane |
To: | All Senate members |
Subject: | Building with Integrity: The Pennsylvania Quality Construction Tax Credit |
In the near future, we will be introducing legislation that seeks to promote fairness, quality, and skilled craftsmanship within the tax incentive programs designed to stimulate economic growth. As we contemplate the future of our state's tax incentive programs, it is imperative that we emphasize the importance of fair wages for hard work. These programs have historically played a vital role in attracting businesses and encouraging capital investments, particularly within designated economic zones. While these programs have been instrumental in driving economic development, they also provide a unique opportunity to raise the bar in terms of labor standards and workforce quality. Our proposed legislation introduces two essential benchmarks for businesses making capital investments exceeding $25,000 in construction, reconstruction, demolition, alteration, or repair of facilities within these designated tax zones: 1. Prevailing Wage Requirement: This provision ensures that businesses within the tax program pay their workers fair wages in line with regional standards. It aims to prevent the exploitation of labor and maintain equitable compensation for workers contributing to these projects. 2. Skilled Craft Labor Mandate: To further enhance the quality of workmanship, the bill mandates that at least 70% of the workforce on prevailing wage-eligible projects are "skilled craft laborers." This criterion ensures that projects funded through tax incentives maintain high standards of craftsmanship and expertise, promoting both worker skill development and the overall quality of construction. Furthermore, this legislation places a strong emphasis on apprenticeship programs. We believe that investing in apprenticeships not only fosters a highly skilled and competitive workforce but also strengthens our economy in the long run. Apprenticeship programs provide individuals with opportunities for hands-on learning, mentorship, and career development, ultimately leading to sustainable, family-sustaining careers. Please join us in co-sponsoring this legislation. By doing so, you will be at the forefront of efforts to create a fairer and more prosperous future for our state. Your support will not only strengthen the workforce but also enhance the reputation of our state as a destination for quality investment and construction projects. It will also reaffirm our commitment to providing opportunities for individuals to learn valuable skills through apprenticeship programs, ensuring a pipeline of skilled workers for the future. This is a reintroduction of Senate Bill 960 and 961 from last session, which was co-sponsored by Senators Costa, Hughes, Dillon, Haywood, Fontana, Kearney, Collett, Cappelletti, Street, Comitta, Muth, Saval, L. Williams, Brewster, Boscola, Flynn, and Schwank. |
Description: | This bill amends the Tax Code. | |
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Description: | This bill amends the KOZ, KOEZ, and KOIZ Act. | |
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