Pennsylvania · Rural / Investment · PA-RURAL-001
Rural Jobs and Investment Tax Credit
Publication revised September 24, 2026. Sourcebook page 233.
Credit amount / calculation
Credit generated through qualified investment structures; generally not
Business fit and eligible activity
Potentially useful indirectly to rural businesses receiving capital from approved rural growth funds. Investor-supported financing, not a direct operating-company credit.
Eligibility and practical use
The tax credit supports investors in approved rural growth funds. A wood-products business may obtain financing from such a fund but does not automatically receive the investor credit.
Illustrative business benefit
A mill receives $900,000 of financing from an approved fund. Its own direct tax credit from receiving that loan or investment is $0. Any benefit to the mill is financing access or terms; the statutory tax credit belongs to the qualifying investor. a simple operating-company claim.
Timing / first action
Seek approval before signing a purchase order, contract, lease or other binding commitment. Identify the approved fund and financing terms. Do not subtract the investor credit from the operating company tax bill.
Official sources
Related programs
Historic Preservation Tax Credit
Credit based on qualified rehabilitation expenditures
Certified historic mill rehabilitation can qualify for an allocated state credit.
Manufacturing Tax Credit
Up to
Qualifying manufacturers increasing taxable payroll through new jobs can receive a performance credit.
Research and Development Tax Credit
Percentage of Pennsylvania qualified research expenses over
Qualified Pennsylvania research can generate an annually allocated credit.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Clean Fuel Production Credit (Internal Revenue Code §45Z)
Per-gallon or gallon-equivalent credit based on the
Potentially relevant only if a forest-products business actually produces qualifying transportation fuel.