This bill amends the Tax Reform Code of 1971 to create new exclusions from sales and use tax specifically for Pennsylvania steel products. It exempts the retail sale or use of these products, which are defined as those processed from steel made in Pennsylvania. A product will qualify as a Pennsylvania steel product if at least 75% of the cost of its components are sourced from Pennsylvania, even if it contains steel from other sources.

In addition to the tax exemptions, the bill establishes a new tax credit program called "Fueling Opportunities for the Revitalization, Growth and Efficiency of Steel Tax Credit." This program incentivizes companies that invest a minimum of $50 million in facility improvements for steel manufacturing, requiring the creation of at least 100 full-time jobs. The tax credit can be up to 6% of the capital investment and includes provisions for advanced manufacturing technology. The bill also mandates annual reporting on the tax credits' impact, including the names of qualified taxpayers and the benefits to the Commonwealth, and specifies that the tax credit will be applicable for five years from the effective date, with provisions taking effect for retail sales or use after December 31, 2026.

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