Promoting Employment Across Pennsylvania Act

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[author: James L. Fritz]

On October 25th, Governor Corbett signed Act 206 of 2012, which will permit qualifying companies to retain (or obtain a rebate of) 95% of the PA Personal Income Tax withheld from new employees. The bill’s prime sponsor was Rep. Kerry Benninghoff (Centre/Mifflin).

To qualify, a company must create 250 new jobs within five years (of which, 100 must be created within two years). The company must provide health insurance and pay 50% of the premium. The new jobs must pay at least 100% of the county average wage. The period during which the company may receive benefit varies from seven to ten years based on the percentage over the average wage:

100% - 7 years
110% - 8 years
120% - 9 years
140% - 10 years

Benefits are not available to many organizations and industries, including the following: Gambling Industry, Religious Organizations, Retail Establishments, Educational Establishments and Service Providers, Public Administration Organizations, Utility Companies, and Food Service and Drinking Place. Tax delinquents also are not eligible.

A 100% claw-back applies if the company fails to fulfill its agreement with the Dept. of Community and Economic Development. A 66% claw-back applies if the company relocates out-of-state within three years after the final benefit year and a 33% claw-back applies for moving within 3-5 years.

Published In: Administrative Agency Updates, Labor & Employment Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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