PENNSYLVANIA, May 26 - Deduction.--(a) In order to be eligible to receive a

manufacturing innovation and reinvestment deduction, a taxpayer

must demonstrate to the department a private capital investment

in excess of [sixty million dollars ($60,000,000)] one hundred

million dollars ($100,000,000) ONE MILLION DOLLARS ($1,000,000)

for the creation of new or refurbished manufacturing capacity

within three years of a designated start date.

* * *

(d) (1.1) If the private capital investment is in excess of

[sixty million dollars ($60,000,000), but not more than one

hundred million dollars ($100,000,000)] one million dollars

($1,000,000), but not more than ten million dollars

($10,000,000), the maximum allowable deduction shall be equal to

[thirty-seven and one-half] ten per cent of the private capital

investment utilized in the creation of new or refurbished

manufacturing capacity[. A taxpayer may utilize the deduction in

an amount not to exceed seven and one-half per cent of the

private capital investment utilized in the creation of new or

refurbished manufacturing capacity in any one year of the

succeeding ten tax years immediately following the department's

satisfaction determination and the execution of a satisfaction

commitment letter, up to the maximum allowable deduction.] per

tax year for a period of five years.

(1.2) If the private capital investment [exceeds one hundred

million dollars ($100,000,000)] is in excess of ten million

dollars ($10,000,000), but not more than one hundred million

dollars ($100,000,000), the maximum allowable deduction shall be

equal to [twenty-five] seven and one-half per cent of the

private capital investment utilized in the creation of new or

refurbished manufacturing capacity[. A taxpayer may utilize the

20210SB0288PN0800 - 2 -

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