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House hearing probes lowered thresholds, higher per-gallon credit for milk processors
Summary
House Bill 500 would reduce the capital and job thresholds for the EDGE milk processing tax credit and increase the per-gallon credit, including an added premium for facilities using majority organic milk. The bill keeps the existing annual cap of $15 million.
The House Finance Committee discussed proposed changes to Pennsylvania’s EDGE milk processing tax credit during a public hearing on House Bill 500.
Representative John Inglis, the bill’s prime sponsor, said the Department of Agriculture and Department of Community and Economic Development requested updates because the current thresholds have made the credit unattainable. Under current law enacted in 2022, the minimum capital investment to qualify was $500 million and the job creation requirement was 1,200 jobs; Representative Inglis said those standards have prevented use of the credit.
Under HB 500 as discussed, the bill would lower the minimum capital investment to $50 million and the job creation requirement to 100 jobs. The proposal would raise the base credit from $0.05 per gallon processed at the project facility to $0.20 per gallon and add a 10¢ per gallon premium for facilities that use at least 80% organic dairy (raising qualified facilities to $0.30 per gallon).
Chairman Samuelson confirmed the annual cap remains $15 million and the maximum program period discussed would be up to eight years. The hearing recorded testimony in favor of making the credit more accessible but no committee votes or final decisions were made.
Discussion vs. decision: this was a fact-finding and testimony hearing; no formal action was recorded. The committee set a potential vote for May 7 and an amendment deadline the day before.
Next steps: committee members may propose amendments ahead of the scheduled committee consideration.
