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. To qualify as a Pennsylvania steel product, at least 75% of the cost of materials must be sourced from within the state if the product contains both Pennsylvania and non-Pennsylvania steel. Additionally, the bill introduces a new tax credit, the "Fueling Opportunities for the Revitalization, Growth and Efficiency of Steel Tax Credit," aimed at companies that invest a minimum of $50 million in facility improvements and create at least 100 full-time jobs. The tax credit can be up to 6% of the capital investment, with specific provisions for advanced manufacturing technology.

The bill also 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 credit by qualified taxpayers, the amounts approved or sold, and the benefits to the Commonwealth, particularly in terms of steel production. The tax credit will be applicable for five years from the effective date of the new section, with provisions applying to sales at retail or use after December 31, 2026, and to tax years commencing thereafter. 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