This bill amends the Tax Reform Code of 1971 to create new exclusions from sales and use tax specifically for Pennsylvania steel products, which are defined as those processed from steel manufactured in Pennsylvania, with at least 75% of the material costs sourced locally. The legislation aims to support the steel industry by exempting these products from tax and establishing a new tax credit called the "Fueling Opportunities for the Revitalization, Growth and Efficiency of Steel Tax Credit." This credit is available to companies that invest a minimum of $50 million in facility improvements and create at least 100 full-time jobs, allowing for a credit of up to 6% of the capital investment.

Furthermore, the bill introduces regulations for the implementation of these tax credits, including a reporting requirement for the department to submit annual reports starting September 1, 2026. These reports will provide details on qualified taxpayers, the amounts of tax credits approved and utilized, and the benefits to the Commonwealth, particularly in terms of steel production. The tax credit provisions will be effective for five years from the new section's effective date, applying to sales and use after December 31, 2026, and for tax years commencing thereafter. The act is designed to take effect immediately upon passage.

Statutes/Laws affected:
Printer's No. 1070 (Jul 23, 2025): P.L.6, No.2