Bill > HB1556

This bill establishes a new tax credit program for advanced clean manufacturing projects in Pennsylvania, designed to incentivize the production of environmentally friendly industrial materials and technologies. The bill creates a tax credit equal to 30% of qualified production costs, with a maximum credit of $10 million per taxable year, for businesses developing clean steel, clean aluminum, clean cement, clean glass, electric grid modernization equipment, energy-efficient heat pumps, energy-efficient turbines, and hydrogen electrolyzers. To be eligible, projects must demonstrate potential for job creation, greenhouse gas emission reduction, technological innovation, and commercial viability. The Department of Environmental Protection will administer the program, with an annual cap of $50 million in total tax credits. Qualified taxpayers can carry forward unused credits for up to five years, and credits will be subject to recapture if obtained through fraud or if production standards are not maintained. The program will run until December 31, 2035, unless reauthorized by the General Assembly, and requires public disclosure of credit recipients. The bill aims to support Pennsylvania's economic development while promoting clean manufacturing and reducing industrial carbon emissions.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=1556