A southwestern Pennsylvania state senator says his new bill could incentivize investments in aging steel plants across the state.
Mon Valley Sen. Nick Pisciottano, a first-term Democrat, said the legislation would reduce state sales tax for Pennsylvania-made steel and create a “two-tier tax credit” for investments made in Pennsylvania steel plants themselves.
One credit would be available to all producers.
“That second tier, that additional credit available for making investments in the newest kind of steel technology,” Pisciottano told WESA Friday. “So those are electric arc furnaces, those are improved environmental processes.”
Investment in new technology could improve manufacturing efficiency and worker safety, he said, and a lower sales tax would help the industry sell at more competitive prices.
And while Pisciottano says his legislation isn’t a direct response to the contentious proposed sale of U.S. Steel to Japanese Nippon Steel, he said the struggles of Pittsburgh-area producers played a big role in driving the discussions about revamping Pennsylvania’s steel industry which led to his bill.
“[We] want to make sure that the state is stepping up to protect domestic steel production in the Commonwealth,” he said in an interview Friday.
Commonwealth Media Services
He said this month’s announcement by manufacturer Cleveland-Cliffs to close three plants — including two in the Pennsylvania communities of Steelton and Conshohocken — proves the industry needs help. And Pisciottano says a companion bill to his own will likely be sponsored in the House by a House member from one of those communities.
State Rep. Nathan Davidson (D-Dauphin/Cumberland) spoke on the plant closures alongside a “Fighting Oligarchy” tour stop in Harrisburg by Western Pennsylvania Congressman Chris Deluzio and U.S. Sen. Bernie Sanders (I-Vt.). He took the opportunity to encourage workers to unionize.
“From Homestead to Hershey, our workers forged the steel that saw our nation grow to new heights,” Davidson said before announcing the Steelton plant news. “I thought all these tariffs were supposed to get the plants open, not the other way around.”
The office of Republican Senate leader Joe Pittman did not immediately respond to a request for comment on the viability of the Democratic proposal.
But, as Pisciottano said his memo was only circulated Wednesday, “We’ll be continuing to work with our Republican colleagues in the Senate to see if we can get them on board.”
In a statement to WESA, the head of Pennsylvania’s steelworkers union praised the proposal.
“The USW commends Sen. Pisciottano’s commitment to Pennsylvania’s steel industry and to the good, union jobs it supports,” wrote Bernie Hall, director of the United Steelworkers District 10. “Steelmaking is more than just a storied part of our state’s history. It’s essential to safeguarding our national security and building out our critical infrastructure, and we must ensure we can rely on this vital industry now and well into our future.”
