Pennsylvania HB 1749: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in sales and use tax, further providing for exclusions from tax; and establishing a fueling opportunities for the revitalization, growth and efficiency of steel tax credit.

Bill Text

PRINTER'S NO. 2157
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1749
Session of
2025
INTRODUCED BY MADSEN, INGLIS, DAVIDSON, KUZMA, T. DAVIS, HILL-
EVANS, GIRAL, FREEMAN, SANCHEZ, D. WILLIAMS, GUZMAN, HADDOCK
AND NEILSON, JULY 21, 2025
REFERRED TO COMMITTEE ON FINANCE, JULY 22, 2025
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in sales and use tax, further providing for
exclusions from tax; and establishing a fueling opportunities
for the revitalization, growth and efficiency of steel tax
credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 204 of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, is amended by
adding a clause to read:
Section 204. Exclusions from Tax.--The tax imposed by
section 202 shall not be imposed upon any of the following:
* * *
(77) The sale at retail or use of Pennsylvania steel
products in this Commonwealth. For the purposes of this clause,
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

the term "Pennsylvania steel products" means p roducts rolled,
formed, shaped, drawn, extruded, forged, cast, fabricated or
otherwise similarly processed, or processed by a combination of
two or more of such operations, from steel made in Pennsylvania
by the open hearth, basic oxygen, electric furnace, Bessemer or
other steel making process. The following shall apply:
(i) The term shall include cast iron products made i n
Pennsylvania or machinery and equipment listed in United States
Department of Commerce Standard Industrial Classification 25
(furniture and fixtures), 35 (industrial and commercial
machinery and computer equipment) and 37 (transportation
equipment) and made of, fabricated from or containing steel
components made in Pennsylvania.
(ii) If a product contains Pennsylvania steel and United
States steel or foreign steel, the product shall be considered a
Pennsylvania steel product under this clause only if at least
seventy-five per cent of the cost of the articles, materials and
supplies have been mined, produced or manufactured, as the case
may be, in Pennsylvania.
Section 2. The act is amended by adding an article to read:
ARTICLE XVII-G.2
FUELING OPPORTUNITIES FOR THE REVITALIZATION,
GROWTH AND EFFICIENCY OF STEEL TAX CREDIT
Section 1701-G.2. Scope of article.
This article establishes a fueling opportunities for the
revitalization, growth and efficiency of steel tax credit.
Section 1702-G.2. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
20250HB1749PN2157 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

"Company." A corporation, partnership, limited liability
company, limited liability partnership, business trust,
affiliate, unincorporated joint venture or other business entity
doing business within this Commonwealth.
"Department." The Department of Revenue of the Commonwealth.
"Facility improvement." A retrofit, upgrade or operational
improvement at a facility located in this Commonwealth for the
purpose of manufacturing steel at the facility, including the
installation or use of advanced manufacturing technology.
"Pass-through entity." Any of the following:
(1) A partnership as defined in section 301(n.0).
(2) A Pennsylvania S corporation as defined in section
301(n.1).
(3) An unincorporated entity subject to section 307.21.
"Qualified tax liability." The liability for taxes imposed
under Articles III, IV, VI, VII, VIII, IX, XI and XV. The term
does not include tax withheld under section 316.1.
"Qualified taxpayer." A company that satisfies all of the
following:
(1) Purchases and uses facility improvements to
manufacture steel material at a facility located in this
Commonwealth.
(2) Has made a capital investment of at least
$50,000,000 in facility improvements to manufacture steel
material at a facility located in this Commonwealth.
(3) Has created at least 100 full-time equivalent jobs
due to the purchase and use of facility improvements to
manufacture steel material at a facility located in this
Commonwealth.
"Tax credit." The fueling opportunities for the
20250HB1749PN2157 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

revitalization, growth and efficiency of steel tax credit
established under this article.
Section 1703-G.2. Eligibility.
In order to be eligible to receive a tax credit, a co