Bill > HB500

This bill makes several significant changes to Pennsylvania's tax credit programs across multiple economic development sectors. The bill repeals and replaces existing subarticles related to local resource manufacturing, milk processing, and regional clean hydrogen hubs while introducing new tax credit provisions for reliable energy, geothermal energy, and sustainable aviation fuel. The key provisions include: For the Reliable Energy Investment Tax Credit, the bill establishes a new program providing tax credits for clean energy projects based on their carbon emissions intensity, with credits ranging from 16 cents to 81 cents per kilogram of hydrogen depending on the project's carbon intensity. Eligible projects must make a capital investment of at least $100,000,000, create at least 200 new jobs, and be located in various regions of Pennsylvania. The program will make up to $49,000,000 in tax credits available annually from 2025 to 2045. For the Milk Processing Tax Credit, the bill updates the program to provide up to $2.30 per hundred weight of milk processed, with an additional $1.15 for organic dairy. Qualified taxpayers must invest at least $50,000,000 or create 100 new jobs, and the program will make up to $15,000,000 in tax credits available annually. The bill also introduces new tax credit programs for geothermal energy projects (providing up to 30% of capital investment, max $5,000,000) and sustainable aviation fuel production (75 cents per gallon), with various eligibility requirements focused on job creation, local investment, and environmental considerations. Additionally, the bill modifies existing tax credit programs for semiconductor manufacturing, lowering investment thresholds and creating special provisions for early-stage semiconductor businesses. The changes aim to attract and support clean energy, manufacturing, and technological innovation in Pennsylvania by providing targeted tax incentives across multiple industries.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=500