Bill > SB986

This bill establishes a new tax credit program for commercial space companies in Pennsylvania, designed to incentivize and support the state's space technology sector. The bill defines an "eligible commercial space company" as a business that creates complete spacecraft, has received federal contract funding, has successfully operated a spacecraft in space, maintains its corporate headquarters in Pennsylvania, and derives at least 20% of its annual revenue from federal infrastructure-related space technology contracts. To qualify for tax credits, companies must meet specific criteria, including filing all required state tax reports and demonstrating a preference for using Pennsylvania-manufactured products and services. The tax credits are substantial, offering up to $35 million in the first taxable year and up to $10 million in subsequent years, matching federal research and development funding. Companies must apply by March 1 for the prior calendar year, providing detailed documentation about their space technology work. The tax credits can be sold or assigned with department approval, are limited to 50% of qualified tax liabilities, and will be available for a period of 15 years at each project facility. The Pennsylvania Department of Revenue will oversee the program, review applications, and is required to submit an annual report to the General Assembly detailing the tax credits' effectiveness, including information on job creation and credit utilization. The bill will take effect 60 days after its enactment.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=S&type=B&bn=986