Pennsylvania · Manufacturing / Jobs · PA-MI-001
Manufacturing Tax Credit
Publication revised September 24, 2026. Sourcebook page 231.
Credit amount / calculation
Up to 5% of the increase in annual taxable payroll from qualifying new full-time jobs; minimum payroll increase is $1 million.
Business fit and eligible activity
Qualifying manufacturers increasing taxable payroll through new jobs can receive a performance credit. Hiring, wages or qualifying training; where the program also requires investment, satisfy both tests.
Illustrative business benefit
An approved manufacturer adds $1.2 million of qualifying annual payroll. At an awarded 5% rate, the credit is $60,000, subject to the agreement and use restrictions.
Timing / first action
Check application or certification requirements before incurring the qualifying expense or beginning the qualifying activity.
Official sources
Related programs
Historic Preservation Tax Credit
Credit based on qualified rehabilitation expenditures, subject to annual allocation and...
Credit based on qualified rehabilitation expenditures, subject to annual allocation and certification.
Research and Development Tax Credit
Percentage of Pennsylvania qualified research expenses over base; annual statewide allocation...
Percentage of Pennsylvania qualified research expenses over base; annual statewide allocation and small-business set-aside apply.
Rural Jobs and Investment Tax Credit
Credit generated through qualified investment structures; generally not
Credit generated through qualified investment structures; generally not
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally 6% base investment credit and up to 30% with prevailing-wage/apprenticeship...
Generally 6% base investment credit and up to 30% with prevailing-wage/apprenticeship compliance, plus possible statutory bonuses.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based credit beginning at 0.3¢/kWh, with higher rates and bonuses when statutory...
Production-based credit beginning at 0.3¢/kWh, with higher rates and bonuses when statutory conditions are satisfied.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method or the alternative simplified method. The latter generally...
Regular research-credit method or the alternative simplified method.