HARRISBURG – Seeking to boost Pennsylvania’s economy, Sen. Dan Laughlin (R-49) has introduced legislation that would increase tax credits for jobs created in the state’s Qualified Opportunity Zones (QOZ).
“We need to have more tools to promote job creation in Pennsylvania, and my bill would provide one such tool,” said Sen. Laughlin. “This legislation would add an additional $500 per job for each qualifying job created in a QOZ.”
Senate Bill 944 would allow a company to claim a tax credit of $1,500 per new job created in a federally designated opportunity zone, or $3,000 per each new job created in a federally designated opportunity zone if the newly created job is filled by a veteran or an unemployed individual.
“Many states, in order to encourage development in Opportunity Zones, are providing additional state level tax credits and incentives to encourage real estate development and business investments,” Sen. Laughlin said.
Created in 2017 by the federal Tax Cuts and Jobs Act, the QOZ program is focused on stimulating economic development and job creation in low-income communities by offering tax incentives for investment into designated distressed census areas.
The program utilizes a federal capital gains tax incentive offered to taxpayers in exchange for the deferral and investment of capital gains into designated, distressed census tracts.
Pennsylvania’s 300 QOZs were selected based on their distressed economic status, recommendations from local partners, and the likelihood of private-sector investment in those specific census tracts.
“The Commonwealth has historically provided approved businesses $1,000 to $2,500 per new family-sustaining job created within Pennsylvania,” said Sen. Laughlin. “It’s time to boost the credit to encourage regrowth throughout the state.”
Contact: Matt Azeles firstname.lastname@example.org