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 minimum allocation of $100,000 in tax credits for early-stage semiconductor businesses, with a cap of $1 million per business per fiscal year. Furthermore, the total aggregate amount of tax credits awarded to a qualified taxpayer cannot exceed 25% of the capital investment made to construct a project facility. The changes aim to stimulate economic growth in Pennsylvania's semiconductor and biomedical sectors by making tax credits more accessible and encouraging investment in these industries.

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