This bill amends the Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits to enhance support for semiconductor manufacturing and biomedical manufacturing and research. Key changes include the introduction of a new definition for "early-stage semiconductor business," which refers to businesses with less than $10 million in revenue related to semiconductor research or design. The eligibility criteria for "qualified taxpayers" have been revised, lowering the required capital investment from $200 million to $20 million and adjusting job creation requirements from a minimum aggregate total of permanent jobs to a minimum of 100 jobs. Additionally, the bill stipulates that early-stage semiconductor businesses must have at least $3 million in research and development investment during the previous year to qualify for tax credits.

The bill also modifies the application and approval process for tax credits, allowing for a minimum of $1 million in tax credits to be issued to qualified taxpayers engaged in semiconductor manufacturing and biomedical research. It establishes a new provision for early-stage semiconductor businesses, allowing them to receive a minimum of $100,000 in tax credits per fiscal year, with a cap of $1 million in any fiscal year and a total of $2 million in aggregate tax credits. Furthermore, the bill clarifies the process for the sale or assignment of tax credits, ensuring that qualified taxpayers can sell or assign their credits if held through the end of the calendar year in which they were granted. The act is set to take effect in 60 days.

Statutes/Laws affected:
Printer's No. 466 (Mar 21, 2025): P.L.6, No.2
Printer's No. 0466: P.L.6, No.2