This bill amends the Pennsylvania Tax Reform Code of 1971 by adding a new subarticle dedicated to the Pennsylvania space economy, specifically under Article XVII-L. The new subarticle, titled "Pennsylvania Space Economy," introduces definitions for terms such as "eligible commercial space company," "project facility," and "qualified taxpayer." To qualify for tax credits, companies must meet specific criteria, including conducting research or manufacturing related to space technology, receiving federal contract funding, and demonstrating a commitment to local employment.

The bill outlines the eligibility requirements for tax credits, which can be as high as $35 million for the first taxable year and $10 million for subsequent years. It establishes an application process, requiring companies to submit documentation by March 1 for the previous calendar year, and mandates that the Department of Revenue review applications and notify applicants of approval by May 1. Additionally, the bill allows for the sale or assignment of tax credits, stipulates guidelines for implementation, and requires annual reporting on the effectiveness of the tax credits, including job creation and utilization. The provisions of this subarticle will apply for a period of 15 years at each project facility.

Statutes/Laws affected:
Printer's No. 1131 (Sep 04, 2025): P.L.6, No.2