Dec. 05, 2019

DOVER – A Pennsylvania grand jury recently issued a report finding the state’s Keystone Innovation Zone and Pennsylvania Research and Development tax credit programs are susceptible to fraud. In response to the report, Rep. Seth Grove (R-Dover) issued the following statement:

“Tax credits have failed to help Pennsylvania’s economy. Let me be blunt, these are special interest giveaways and nothing else. Pennsylvania needs to stop using corporate welfare as its economic policy because it simply fails. We need broad-based tax restructuring to lower the tax burden on Pennsylvanians and drive real economic gains.

“Government is not here to financially prop up businesses or ventures. Government is here to work for the people and to be wise shepherds of their tax money.

“The findings in the grand jury report should alarm all Pennsylvanians. The report states two suspects from Hong Kong allegedly nefariously obtained $10.6 million in tax credits they then sold for $6.4 million.

“Make no mistake. This is fraud conducted on the backs of legitimate taxpayers. Just this one instance highlights how vulnerable these programs, which are funded with taxpayers’ dollars, are to fraud.”

Representative Seth Grove
196th District
Pennsylvania House of Representatives

Media Contact: Greg Gross
717.260.6374 /