Qualified Manufacturing Innovation & Reinvestment Deduction
Pennsylvania Department of Community & Economic Development
Who can apply
Eligible applicants for the program must be: (1) An entity engaged in manufacturing; (2) Registered to do business in Pennsylvania and subject to Corporate Net Income Tax (3) An Employer directly responsible for the collection, withholding, and remittance of Individual Taxes to the Department of Revenue on behalf of the workforce; (4) Able to obtain and maintain state tax compliance clearance status with the laws and regulations of the Commonwealth of Pennsylvania, to the satisfaction of the Department of Revenue; (5) Demonstrate a new capital investment in excess of $50 million for the creation of new or refurbished manufacturing capacity associated with a new location or expansion project at a commonwealth site (the “project site”) and; (6) Able to provide current and projected employment figures in Pennsylvania and at the project site. Eligible projects will include the creation of new manufacturing capacity or improvements to existing manufacturing capacity at an identified project site. Limited to the mechanical, physical, biological, or chemical transformation of materials, substances, or components into new products that are the creations of new items of tangible personal property for sale.
About this opportunity
The Qualified Manufacturing Innovation and Reinvestment Deduction was established to encourage increased investment and job creation through manufacturing in Pennsylvania. Qualified businesses are eligible to deduct five percent of their private capital investment from their corporate net income tax liability if they invest more than $50 million in the creation of new or refurbished manufacturing capacity.