Saylor Jobs Bill Passes House, Awaits Senate Action
11/14/2011

HARRISBURG - The House of Representatives passed legislation today, authored by Rep. Stan Saylor (R-York), designed to spur job growth by encouraging the development of new technology companies.

 

“One of the most daunting obstacles to opening the doors of a new business in this challenging economy is a pronounced difficulty in obtaining start-up capital from banks or investors – referred to in the news as ‘tight credit,’” Saylor said.

 

Saylor’s legislation, House Bill 1503, would accelerate the ability of small businesses to secure growth financing by creating a new angel investor tax credit to move scarce capital from the sidelines and into the hands of job creators in Pennsylvania’s emerging technology industry.

 

To help entrepreneurs build successful businesses right here, House Bill 1503 would encourage out-of-state and in-state angel investors to place their scarce capital in Pennsylvania-based start-up businesses with a new 25 percent tax credit. The new tax credit would be paid for by repurposing unused credits from the existing Keystone Innovation Zone program, which now uses about $10 million of its $25 million in annual credits.

 

More than 20 states, including Ohio and Maryland which compete with Pennsylvania to attract jobs, have similar successful programs, noted Mike Gildea, executive director of the PA Angel Network, an organization aimed at maximizing angel network dollars in the Keystone State.

 

In July, Maryland’s program setting aside $8 million in biotech tax credits to investors received 180 applications within the first three minutes of the application submittal window.

 

“Current angel tax credit programs have been a positive resource for job creation, innovation and spurring angel investment in early-stage companies,” Gildea said. “The creation of a Pennsylvania angel tax credit as championed by Representative Saylor will be a critical step forward to improving the early-stage company investment climate, and growing innovative companies.”

 

To qualify, the start-up businesses would need to be less than five years old and have raised no more than $5 million in equity financing. They would be required to document their ability to create Pennsylvania jobs and agree to remain headquartered in Pennsylvania for at least five years.

 

“For the job opportunities that are being lured away by other states, this bill provides Pennsylvania entrepreneurs with the opportunity to build their businesses where they want to live and raise their families,” Saylor said.

 

 

State Representative Stan Saylor

94th District, Pennsylvania House of Representatives

Contact: Charles Lardner

clardner@pahousegop.com

717.260.6443

RepSaylor.com

Facebook.com/RepSaylor

Twitter.com/PAGOPWhip

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