Rep. Ryncavage: Agreement reached to save NEPA tax credit; discussions continue
May 7—NEWPORT TWP. — State Rep. Alec Ryncavage on Wednesday said an agreement has been reached to preserve the Local Resource Manufacturing Tax Credit for Nanticoke and Newport Township.
Rep. Ryncavage, R-Hanover Township, said the decision came following key discussions ahead of Wednesday's House Finance Committee meeting.
Discussions with Rep. Ryncavage and the bill's stakeholders Wednesday morning prompted an agreement on a path forward to protect the critical tax incentive that he said supports future development and family-sustaining jobs in Northeast Pennsylvania.
"Following productive conversations, we've agreed there is a path forward to save this vital tax credit," Rep. Ryncavage said. "It's important not only for attracting future investment in Nanticoke and Newport Township, but for the working families and skilled tradespeople of Northeast Pennsylvania who stand to benefit most."
In a show of bipartisan cooperation, Rep. Ryncavage said he withdrew his amendment in committee with the understanding that all parties would work together on a mutually agreed-upon amendment. He said the revised language would be introduced for consideration when the bill gets called for a vote before the entire House of Representatives.
"The unamended bill passed the House Finance Committee on a party-line vote of 14-12, with all Democrats voting in favor and all Republicans opposed," Rep. Ryncavage said, "We remain hopeful that with the inclusion of language that supports natural gas and protects key incentives for Northeast Pennsylvania like the Local Resource Manufacturing Tax Credit, Republican members will ultimately be able to join in support when the bill comes before the full House."
Rep. Ryncavage said he is grateful all parties were able to come together in good faith and prioritize what's best for the communities.
"This isn't about one company — it's about keeping Northeast PA competitive for the kinds of development our region deserves," Rep. Ryncavage said.
The Local Resource Manufacturing Tax Credit was originally established to support large-scale energy projects, create union construction jobs, and drive long-term economic growth and revitalization. Its preservation remains a key issue for Luzerne County's future.
Rep. Ryncavage said it is unknown when the bill will be placed on the House calendar for its next consideration, but in the meantime, all parties have committed to working together on language that protects the intent and economic impact of Act 66 of 2022.
The Local Resource Manufacturing Tax Credit was originally established to support large-scale energy projects, create union construction jobs, and drive long-term economic growth and revitalization.
"Its preservation remains a key issue for Luzerne County's future," Rep. Ryncavage said.
The history
Rep. Ryncavage raised concerns on Tuesday about House Bill 500 of 2025 — introduced by freshman Rep. John Inglis of Allegheny County — that proposed to remove the Local Resource Manufacturing Tax Credit, which was designed for Northeast Pennsylvania, and reallocate those incentives to other parts of the state.
If passed, Ryncavage said the bill would strip the region of a critical economic development tool designed to help it grow.
He also commented on how the proposal, if approved, would affect future development in NEPA.
"We now have a federal administration that is more favorable toward natural gas and energy production at a time when demand is reaching all-time highs, driven by AI, data centers, and rising utility costs," he said. "In business, investment goes where investment is welcomed. If we want that investment here in Luzerne County, we cannot afford to strip away the very incentives designed to attract it."
In his legislative newsletter, Ryncavage explained that back in October 2021, Luzerne County residents were introduced to a transformative proposal — a $6 billion manufacturing facility by Texas-based Nacero, planned for a former coal mining site in Nanticoke and Newport Township.
Ryncavage said he and other legislators and economic development and labor officials felt the plant would have produced gasoline using natural gas and renewable natural gas, promising thousands of family-sustaining jobs and a major boost to the regional economy.
According to Ryncavage, at the time when the proposal was announced, Nacero projected the creation of 3,500 construction jobs across all trades and 450 permanent high-tech positions, paying an average of $85,000 per year. The project earned bipartisan support, with praise from leaders across the aisle, including U.S. Rep. Dan Meuser and former U.S. Rep. Matt Cartwright and. However, Ryncavage said some local residents expressed concern about having such a facility near their homes.
In 2022, Act 66, known as the PA Economic Development for a Growing Economy tax credit program, was signed into law. This bipartisan initiative, authored by Republican lawmakers and enacted under Democratic Gov. Tom Wolf, established targeted incentives to attract major industries to Pennsylvania.
Included in this legislation was the Local Resource Manufacturing Tax Credit — which was crafted specifically to bring economic investment to areas like Nanticoke and Newport Township.
Reach Bill O'Boyle at 570-991-6118 or on Twitter @TLBillOBoyle.
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