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Corbett Touts Ethane Cracker Tax Credit, Business Tax Changes

Governor Tom Corbett toured the US Steel Clairton Plant on Monday, taking the opportunity to praise the pro-business aspects of the new state budget.

Corbett said until the current budget year, companies had been paying more in taxes the more employees and property they'd had in Pennsylvania.

"So, the more we grew inside of Pennsylvania, the more the tax was," said Corbett. "Well, we've changed that. We've changed it to basically, 'What do you make? What are the sales?' and that's what the tax is going to be, so that we encourage more employment, and we encourage more growth of the plant in Pennsylvania."

The governor also touted the tax credit being offered to Royal Dutch Shell if the company builds an ethane cracker processing facility in Beaver County. Corbett said Shell would receive the tax credit on Pennsylvania natural gas only if the cracker's processed gas byproducts are developed within the commonwealth's borders.

"What the credit does is encourage any company willing to build the infrastructure for a cracker to receive a tax credit on the natural gas that they buy here," said Corbett. "They can pass that credit along to whoever buys the processed natural gas, so long as they use it in Pennsylvania and not ship it out of the state."

Corbett said the new budget also continues a tax credit for industrial research and development within Pennsylvania. Another tax credit encourages companies to donate money to private school scholarships for poor children.

About 1,300 people work at the Clairton coke plant, which produces about four million tons per year.

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