Pennsylvania Make Last-minute $2 Billion
Tax Credit Proposal
In the last days of this year's legislative session, state lawmakers passed a $2 billion tax credit plan to attract hydrogen, milk, and semiconductor firms to Pennsylvania.
The plan, not yet signed by Gov. Tom Wolf, is called PA EDGE, or Pennsylvania Economic Development for a Growing Economy. It would provide nearly $1.97 billion in tax reductions over 25 years.
GOP leaders championed the last-minute legislation package, claiming that the benefits will spur billions of dollars in private investment across the Commonwealth.
The PA EDGE program creates three new state tax credit initiatives: one for milk processors, one for electronics firms, and one to lure a "hydrogen center" to the state.
What Does PA EDGE Program Do?
House Bill 1059 would enhance the Local Resource Manufacturing Tax Credit by $30 million yearly for enterprises that use dry natural gas to make petrochemicals or fertiliser.
The milk processing tax credit would offer firms up to $15 million per year over 8 years and $500 million to build a milk processing facility in Pennsylvania.
Companies that make semiconductors, do biomedical research, or manufacture biomedical products would be eligible for the PA EDGE program.
The Semiconductor Manufacturing and Biomedical Manufacturing and Research Tax Credit scheme would provide up to $20 million yearly or $100 million over five years.
A regional hydrogen hub is intended to be drawn to Pennsylvania through the Regional Clean Hydrogen Hubs Tax Credit.
What Is A Hydrogen Hub?
Last November, President Joe Biden signed a $1 trillion infrastructure bill. The Biden administration allocated $7 billion in government funds for "regional clean hydrogen hubs"
Shortly after the law was passed, Republican leaders in the House and Senate praised the PA EDGE tax credits as a tool that will attract businesses to locate in Pennsylvania.