Pennsylvania lawmakers’ proposed bill aims to capitalize on U.S. Steel-Nippon deal
PITTSBURGH (TNS) — A slew of state lawmakers — including two representing parts of Allegheny County — have introduced legislation aimed at helping one of the legacy industries in the Pittsburgh region: steelmaking.
State Sen. Nick Pisciottano, state Rep. John Inglis, and multiple other elected officials in Harrisburg recently proposed a bill known as Fueling Opportunities for the Revitalization, Growth, and Efficiency of Steel (FORGES), which aims to help steelmaking facilities in Pennsylvania.
Pisciottano and Inglis are Democrats who represent much of the Mon Valley, where multiple U.S. Steel facilities are still operating, and are home to thousands of workers. Their bill and others comes in the wake of an announced partnership between U.S. Steel and Nippon Steel, Japan’s largest steelmaker. President Donald Trump visited U.S. Steel’s Irvin Works in West Mifflin in late May, where he announced further details of the Japanese company’s investments along with increasing tariffs on steel imports from 25% to 50%.
The legislation that state lawmakers recently introduced would focus on tax incentives to try to lure businesses to invest in Pennsylvania-made steel. According to a news release from Pisciottano’s office, there would be a sales and use tax exemption for Pennsylvania-made steel, and a tax credit program for businesses that help steelmaking facilities in the state, “with enhanced incentives for those that incorporate the latest technologies and processes to increase efficiency and sustainability.”
“Pennsylvania’s steel built this country’s cities, powered its military victories, and created the union jobs that built the American middle class,” Pisciottano said in a prepared statement. “It’s time we recommit to that tradition and invest in the future of steelmaking in our state.”
In a memo circulated by state Rep. David Madsen, D-Dauphin, one of the bill’s co-sponsors, he, Inglis and Rep. Nathan Davidson, D-Harrisburg, wrote about the importance of steel production to the nation’s history, including at the turn of the 20th century and through World War II, where the industry supported the country’s military efforts.
Steelmaking facilities helped provide good-paying jobs that supported a middle class, but recent unfair trade practices in the global markets and outdated technology have hurt production in the Pittsburgh region, they wrote. The FORGES tax credit would help revitalize the industry, they said. U.S. Steel officials said in a statement that they appreciate the bipartisan effort to invest in Pennsylvania steel and steelmaking.
Bob Macey has represented much of the Mon Valley on County Council since 2006. While he had not heard of Mr. Pisciottano and Mr. Inglis’ bill, he said he broadly supported their efforts to improve the steel industry in the region.
The Mon Valley has suffered for too long without much economic investment, and hopefully, the U.S. Steel and Nippon Steel partnership, alongside the tax incentives, will spur growth, Macey said.
“We will see how it works out, and we will know rather quickly if there’s been a faux pas along the way,” Macey said regarding the partnership between U.S. Steel and Nippon.
U.S. Steel’s partnership and the legislation are also occurring against the backdrop of President Trump’s 50% tariff on steel imports. On a recent earnings call with investors, the leadership of Cleveland-Cliffs — a competitor to U.S. Steel with a facility just outside Butler — said that Trump’s decision is starting to help. Nippon’s move to invest billions of dollars in U.S. Steel is also an encouraging sign for the domestic steelmaking industry, they said.
And it’s not just directly in steelmaking, said Lourenco Goncalves, president and CEO of Cleveland-Cliffs. There have also been benefits in the automaking industry, he said, as lower steel imports mean car manufacturers have to buy domestic-made steel, Goncalves said.
“This will be one of the biggest accomplishments of the Trump administration when we look back … three or four years into the future. It will be the resurgence of automotive production in the United States,” Goncalves said.
Bernie Hall, Director of United Steelworkers District 10, based in North Versailles, said in a statement that the state lawmakers’ proposal is a welcome addition, and he hopes it reaches Gov. Josh Shapiro’s desk.
“This is legislation that actually has teeth behind it,” said Hall, who represents about 50,000 active members across over 120 local unions in Pennsylvania.