Vetoed petrochemical tax break bill revived in Pennsylvania
HARRISBURG, Pa. (AP) —
Pennsylvania state lawmakers could vote on legislation this week that provides millions of dollars in tax breaks to turn natural gas into fertilizer and other chemicals, emerging from closed-door negotiations after Gov. Tom Wolf vetoed a similar bill earlier this year, officials said Sunday.
The replacement legislation differs in some ways from what the Democratic governor vetoed in March, saying that the Republican-controlled Legislature had not negotiated it with him.
The newer version puts limits on how much each facility could reap in tax credits and the number of facilities that can qualify, and it contains wording to ensure facilities comply with a requirement to pay prevailing wage rates.
The House Republican majority leadership will share the new version with rank-and-file members this coming week to gauge support for it, a spokesperson, Mike Straub, said.
The bill was originally introduced by Republican lawmakers last year and had support from the Pennsylvania Manufacturers Association and the state's huge natural gas industry, which is weathering stubbornly low prices and court and regulatory battles that have stalled major interstate pipeline projects.
High-profile supporters include building trades unions, traditional Democratic Party allies that have swayed some Democrats — in an election year — to go along with the tax credit. The bill is a particular achievement for unions, guaranteeing the facilities that get the tax credit pay union-scale wages.
Environmental advocacy organizations have questioned the wisdom of subsidizing not only the natural gas industry but also facilities that could themselves add to the state's greenhouse gas emissions at a time when Wolf's administration is pursuing climate-friendly policy.
They...