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House committee hears proposal to lower thresholds for EDGE semiconductor tax credit
Summary
The House Finance Committee reviewed changes in House Bill 500 that would lower investment and job thresholds for the EDGE semiconductor tax credit, add a carve-out for early-stage firms, and repurpose previously unused credits to attract semiconductor and biomed manufacturing to Pennsylvania.
At a public hearing of the House Finance Committee, members reviewed changes in House Bill 500 that would roll back eligibility thresholds for Pennsylvania’s EDGE semiconductor tax credit to make it accessible to smaller semiconductor projects.
The proposal, presented by Representative John Inglis, would keep the $10 million program cap but allocate $8 million of that to projects meeting a reduced threshold of $100 million in capital investment and 100 new jobs, and reserve $2 million for early-stage semiconductor companies via awards of $100,000 to $2 million from the Department of Community and Economic Development.
The change responds to the 2022 statute (Act 108 of 2022), which set an investment threshold of $200 million and 800 jobs that no Pennsylvania project has met. Representative Inglis said, “To date, not a single entity has claimed eligibility for a tax credit through Edge.”
Don Cunningham, president and CEO of the Lehigh Valley Economic Development Corporation, testified in support. Cunningham described the Lehigh Valley’s longstanding semiconductor cluster and cited recent CHIPS Act awards to regional firms, saying the proposed state adjustments would help keep and grow both early-stage and larger semiconductor operations in Pennsylvania. He told the committee, “With the proposed changes here, Pennsylvania will make itself very competitive with the other states.”
Committee leaders noted the language of standalone House Bill 1267 is incorporated into HB 500 and that the intent is to reallocate previously authorized but unused EDGE credits rather than create new spending. No committee vote occurred at the hearing; Chair Samuelson said a committee meeting is scheduled for a potential vote on HB 500 on Wednesday, May 7, and that amendment filings would be due the day before.
Discussion vs. decision: the hearing recorded testimony and questions but produced no formal action. Committee members signaled they expect amendments and additional debate before any committee vote.
Next steps: the committee may consider amendments ahead of the scheduled May 7 committee meeting and any subsequent floor action.
