Bill > HB1556

This bill establishes the Advanced Clean Manufacturing (ACM) tax credit program in Pennsylvania, which provides tax credits to qualified taxpayers for producing clean steel, clean aluminum, clean cement, clean glass, clean iron, electric grid modernization equipment, energy-efficient heat pumps, energy-efficient turbines, and hydrogen electrolyzers. The tax credit is equal to 30% of qualified production costs, not to exceed $5 million per taxable year, with a total annual cap of $25 million. To be eligible, projects must demonstrate commercial viability, job creation potential, greenhouse gas emission reductions, technological innovation, and cost-effectiveness. Qualified taxpayers must apply for a commitment letter from the Department of Revenue, which will reserve credits pending project completion. The program allows for credit carry-forward for up to five years and permits pass-through entities to transfer credits to shareholders. Projects must meet specific environmental standards, such as reducing greenhouse gas emissions by at least 50%, and use renewable energy sources. The tax credit program is set to expire on December 31, 2035, unless reauthorized by the General Assembly, and includes provisions for credit recapture if a taxpayer fails to maintain production standards or commits fraud.

Budget and Finance

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