As I wrote here yesterday, Pennsylvania has offered to pay German business-software giant SAP up to $1.8 million — $600,000 in a Pennsylvania First program grant, $1.176 million in Job Creation Tax Credits — if the profitable multinational makes good on plans to add nearly 400 employees at its U.S. headquarters in Newtown Square and a planned satellite office in Pittsburgh.
SAP hasn't always taken advantage of the state's cash offers. Plans change; in one case a better state grant deal replaced a smaller offer.
I asked state Department of Community and Economic Development spokesman David Misner to review. According to Misner:
"In 2014, the Governor's Action Team provided a funding package to SAP that included a Pennsylvania First grant and Job Creation Tax Credits" at Newtown Square, "in exchange for SAP's commitment to make a capital investment of $25 million and to create 178 new jobs" at a new $16 million data center, "and retain 2,890 existing positions."
However, SAP has not collected these credits, state records show. It did better: Three weeks before the election in which voters replaced then-Gov. Tom Corbett with Gov. Tom Wolf , Corbett approved SAP for $2 million in matching funds for the data center from the Redevelopment Assistance Capital Program.
Under a prior arrangement, the larger RACP grant caused the state to "rescind" the Pennsylvania First grant, SAP spokesman Steve Collins told me. (The company had asked for $5 million, but RACP was oversubscribed.)
SAP still plans to claim the Job Creation tax credits, which could amount to several hundred thousand dollars: "We created 178 new jobs from 2014-2016," so the company will apply this year to take advantage of the state's 2014 offer, Collins said.