At a news conference yesterday in Harrisburg, state Rep. Tommy Sankey (R-Clearfield) discussed House Bill 869, his legislation which would create the Manufacturing Innovation Account Program. The bill, which has 26 co-sponsors and bipartisan support, now sits with the House Finance Committee.
“My legislation, which is patterned after Connecticut’s Manufacturing Reinvestment Account Program, would essentially create a small business IRA,” Sankey said. “Small business owners would have the opportunity to save tax-free for future investments in new facilities, machinery and workforce training.”
Businesses that apply for the program through the Department of Community and Economic Development must have fewer than 50 employees. Accepted applicants would be permitted to contribute no more than $100,000 to its account in a tax year and no more than $500,000 over the lifetime of the account.
“Small business employs 570,000 Pennsylvanians, accounts for more than 12 percent of our Gross State Product, and is a catalyst for many other related businesses that rely on it,” added Sankey. “This legislation allows them to make investments that will promote job growth and expansion from both the logistical and manpower standpoints.”
Accounts would expire after six years in existence, and the participating business would be penalized 10 percent if the account is used for an ineligible expense.
“I applaud Representative Sankey for introducing this legislation which will give small manufacturers an incentive to expand and hire,” said Kevin Shivers, executive state director of National Federation of Small Business. “Tommy has run a small business and knows what it takes to spur investment by a business owner and how the Commonwealth will ultimately profit.”