This bill amends the Tax Reform Code of 1971 to exempt Pennsylvania steel products from sales and use tax, defining these products as those processed from steel made in Pennsylvania, with at least 75% of the material costs sourced locally. The legislation aims to support the steel industry by introducing a new tax credit, known as the "Fueling Opportunities for the Revitalization, Growth and Efficiency of Steel Tax Credit," for companies that invest a minimum of $50 million in facility improvements and create at least 100 full-time jobs. The tax credit can be as high as 6% of the capital investment and includes provisions for advanced manufacturing technology.

Additionally, the bill establishes new regulations for the implementation of these tax credits, including a reporting requirement for the department to submit annual reports detailing the utilization of the tax credits and their impact on steel production in Pennsylvania. The tax credit will be effective for five years from the new section's effective date, applying to retail sales or use after December 31, 2026, and to tax years starting after that date. The act is set to take effect immediately upon passage.

Statutes/Laws affected:
Printer's No. 2157 (Jul 22, 2025): P.L.6, No.2