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Ethane Cracker Deal Lifts Spending Cap

The AP has a bit more more information on changes to the tax credit on ethane purchases Governor Corbett is pushing for, as he tries to convince Shell to build an ethane cracker in Beaver County.
The most important development is that legislators are lifting the annual $66 million cap on the break, which means the benefits could exceed the $1.65 billion price tag that has been tied to the credit since it was first announced.

At $1.7 billion, lawmakers say it would be Pennsylvania’s largest financial incentive package ever, but the value of the tax credit could actually exceed $66 million a year, or $1.7 billion total.
“At some point in time, it could be” above that, said Sen. Elder Vogel, R-Lawrence, whose district could become home to the new industry. “It won’t be to start with.”
The $66 million limit was an artificial number, Vogel said. But the nickel per gallon figure is more important, because Corbett administration officials say it would be proportional to the industry’s activity and the resulting collections of new taxes on things like sales and income.

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