His plan, which intends to raise nearly $2 billion of additional funding for Pennsylvania's transportation system, does so with changes in the way fuel is taxed.
Under the plan, Corbett would cut the flat tax on gasoline purchases at the pump by 17 percent over the next two years.
That would be countered by a five-year phasing out of the cap on the tax on the wholesale price of gas paid by oil and gas companies.
"It is time for the oil and gas industry to pay their fair share of the cost of the infrastructure supporting their industry," Corbett said in his address.
Corbett said by phasing out the $1.25 cap that was established on the wholesale price of oil in the early 1980s, the state can realize approximately $1.8 billion by the fifth year of the plan. He noted that the wholesale price reached the ceiling in 2006, so funding from the Oil Company Franchise Tax has not grown since.
For a complete report on how the budget proposal may affect businesses, read the Jan. 11 print edition of Lehigh Valley Business.