PA HB1749

Sales tax exemption for Pennsylvania steel products (rolled, formed, forged, cast, or fabricated from steel made in PA), effective after December 31, 2026; mixed-origin products qualify only if at least 75% of materials are Pennsylvania-sourced

Creates the FORGE Steel Tax Credit with $20 million available annually; base credit up to 3% of capital investments in facility improvements, with an additional 3% for advanced manufacturing technology enabling lower-carbon production, hydrogen/electricity generation, or recycled steel use

Eligibility requires minimum $50 million capital investment in Pennsylvania steel manufacturing facility improvements and creation of at least 100 full-time equivalent jobs

Tax credits may be applied against up to 20% of qualified tax liabilities, sold or assigned after the year granted, and cannot be carried forward/back or refunded; total credits per taxpayer capped at 30% of capital investment

Recipients must maintain employment levels for five years and implement workforce development training within one year; relocation outside Pennsylvania within five years triggers full repayment of credits received