SENATOR SPONSORS BOOST IN JOB CREATION TAX CREDIT FOR PA BUSINESSES

          Harrisburg, April 9, 2008 -- Citing recent employment data, Senate Democratic Whip Michael A. O'Pake (D-Berks) today introduced legislation (SB 1358) that would boost the state's Job Creation Tax Credit for businesses from $1,000 to $3,000 for each new job created.
          In Senate floor remarks, O'Pake said the bill -- one of several economic stimulus measures advocated by the Governor -- makes "good common sense and fiscal sense" for the benefit of Pennsylvania's businesses "who need a shot in the arm at present" and "for Pennsylvanians who are looking for work."
          O'Pake said the boost in the tax credit is aimed at encouraging businesses that have been planning to hire new workers "to move forward with those plans."  The state's Job Creation Tax Credit, he said, is "one of many tools in our state's economic development toolbox that, since its inception in 1996, has helped to create more than 71,000 new jobs."  The boost in the size of the credit from $1,000 to $3,000 "would be the first since the program was implemented a dozen years ago," O'Pake said.
          He added that while Pennsylvania's jobless rate has been lower than the nation's unemployment rate for all but two of the past 62 months, Pennsylvania's loss of 8,000 jobs in February showed the state is "not immune" to the enveloping national economic downturn and that "we need to do what we can, and do it now, to help Pennsylvania weather the national storm."  New national data released last Friday showed the loss of 80,000 jobs nationwide in March and an increase in the nation's jobless rate from 4.8 to 5.1 percent.  State job data for March won't be available until later this month.

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The following is the text of Senator O'Pake's 4/9/08 Senate Floor Remarks:

Madame President.  Thank you.  I rise this afternoon to announce the introduction in the Senate of an important element of the Governor’s proposed economic stimulus plan – an element that I believe deserves speedy, overwhelming, and bipartisan support. 

Madame President, the bill I am filing today would boost our state’s Business Job Creation Tax Credit from $1,000 to $3,000…to provide an important incentive to Pennsylvania businesses, large and small, that have been planning to hire new workers….to move forward with those plans.

As we’ve seen from recent reports -- including Friday’s report out of Washington that showed the nation’s unemployment rate ticking up to 5.1 percent and the loss of 80,000 jobs in March alone -- our nation’s economy is in trouble. 

And, while March job stats for Pennsylvania won’t be available until the end of next week, February’s data (released just a couple of weeks ago) shows -- very definitely – that we need to get moving in doing all that we can – as the Governor has suggested – in “protecting Pennsylvania’s progress.”

The fact is that through January of this year, there has been real progress in Pennsylvania.  Our economic development efforts over the past several years have resulted in the creation of thousands of new jobs to the point where in January Pennsylvania posted an historic record of more than 5,811,000 jobs.

But, Madame President, the February data shows that we are not an island unto ourselves…that we are not immune from the economic uncertainty and, what many believe, is an impending national recession.  As a matter of fact, today former Federal Reserve Chairman Alan Greenspan said the recession is here.

For only the 2^nd time in 62 months, Pennsylvania’s February jobless rate of 4.9 percent was higher than the national unemployment rate…and we lost an alarming 8,000 jobs.

The signs are clearly there, Madame President, that we need to do what we can – and do it now  -- to help Pennsylvania weather this national storm.

The state's Job Creation Tax Credit is one of many tools in our state's economic development toolbox that, since its inception in 1996, has helped to create more than 71,000 new jobs in our Commonwealth.  The legislation I'm introducing today to boost the amount of the tax credit from $1,000 to $3,000 for each new job created would be the first increase in the amount of the credit since the beginning of the program a dozen years ago.

The bill does not envision any additional cost to the General Fund; since I’ve been informed that the existing funding authorization is sufficient to permit the increased credit.

Madame President, this is certainly not the only answer to the economic situation we face, but it is an answer that makes good common sense and fiscal sense…one that I believe can help to create the good jobs that our citizens need…and one that I hope this Senate can rally around and pass in short order.

I hope my colleagues on the other side of the aisle will join in co-sponsoring this important job creation incentive…and help to bring it up for committee consideration as soon as possible.  I will leave it on the desk for co-sponsorship by all who are interested in co-sponsoring and have not yet signed on.

For the benefit of our businesses, large and small, who need a shot in the arm at present…and for Pennsylvanians who are looking for work…let’s get this job done.  Thank you, Madame President.
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