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PA-Gov: McGinty Proposes Expansion of “Buy Pennsylvania” Program

Kathleen-McGintyDespite choosing to stay out of the flurry of attacks against Democratic frontrunner Tom Wolf, former DEP Secretary Katie McGinty remains staunchly involved in the gubernatorial race. Recently, she released new proposals to grow Pennsylvania’s economy through expanding the Department of Agriculture’s “Buy Pennsylvania” program.

“With Pennsylvania falling to 48th in job growth under Governor Corbett, my top priority as governor will be to create jobs and economic growth,” said McGinty. “Under a McGinty Administration, we will expand the ‘Buy Pennsylvania’ program, create tax incentives for small business job creation, change the tax code to encourage private investment in small businesses, and provide additional support for small businesses.”

Indeed, most of her expansion of “Buy Pennsylvania” revolves around the creation of jobs for small and emerging businesses. Mainly, McGinty aims to make her plans come to life through the creation of certain tax incentives for these small businesses for the creation of a certain number of jobs during a given time period. Her most recent proposal, released before this one earlier this month, also focuses on local improvements that Pennsylvania could use.

McGinty’s proposal is composed of a few different parts, as taken directly from her campaign’s release:

Buy Pennsylvania. McGinty will launch a major effort to encourage local sourcing and purchasing, including creating preferences in government procurement for PA products.

Tax Incentives for Small Business Job Creation. Pennsylvania provides a one-time tax credit of $1,000 for businesses creating jobs. For at least fifteen years the appropriation for the credit has been fixed at $10 million/yr. McGinty will convert this program into a comprehensive effort to stimulate job creation. Small businesses that create between four and ten jobs will be able to exempt up to $75,000 in income from their state income taxes each year for four years.

Attract Capital to PA. McGinty will create a tax incentive program to encourage private investment in small and emerging businesses by offering investors whose efforts have resulted in the creation of at least five full time positions an exemption up to $100,000 in investment income from state taxes for four years. McGinty will work with pension funds, health, welfare, and endowment funds to encourage investment in Pennsylvania based businesses.

Revamp State Tax Laws on Operating Losses. McGinty will revise the state tax provisions related to how businesses can treat operating losses in order to encourage investment in small and emerging businesses. The time period in which companies can use losses to offset gains for tax purposes will be shortened, creating a market exchange that would allow small and emerging business to sell those losses for much needed capital. The capital gained by those businesses by selling their “losses” would be exempt from state tax.

Support Small Businesses and Employee Owned Businesses. McGinty will strengthen the network of Small Business Development Centers enabling them to serve more small and emerging businesses, including supporting the development of employee owned businesses.

With the primary less than a week ago, McGinty will face fellow Dems former Department of Revenue Secretary Tom Wolf, State Treasurer Rob McCord, and Rep. Allyson Schwartz at the polls on Tuesday.

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