Bill > HB2301

This bill amends Pennsylvania's Tax Reform Code of 1971 to establish tax credits for companies extracting critical minerals from produced water, which is wastewater generated at oil or gas well sites. It defines "critical mineral" as a substance identified by federal agencies as essential for U.S. economic or national security, with a vulnerable supply chain, and vital for energy, defense, or advanced technologies. To qualify for the tax credit, a company must invest at least $1 million in a facility that extracts critical minerals from produced water within Pennsylvania, use locally sourced produced water, and make good-faith efforts to hire local workers. The tax credit is valued at $20 per kilogram of critical minerals extracted, with an annual cap of $25 million statewide and $5 million per company. Companies can use the credit against their tax liability for up to five years and can also sell or assign the credits to other businesses, with specific provisions for offering them first to "downstream companies" (companies that use critical minerals in their manufacturing processes) and then to "upstream companies" (companies involved in the extraction, processing, or transportation of natural gas or other resources). The bill also includes reporting requirements for the Department of Revenue to track the program's effectiveness and economic impact, and the tax credit program is set to apply from January 1, 2027, to December 31, 2039, with applications accepted until December 31, 2040.

Budget and Finance

https://www.palegis.us/legislation/bills/2025/hb2301