HARRISBURG — The House Finance Committee on Monday voted 15-11 to advance House Bill 1556, which would add an “advanced clean manufacturing” tax credit to the state’s PA EDGE economic-development program.
The committee adopted amendment A02161 before voting on the bill. Shannon Snell, the committee’s senior research analyst, summarized the amendment as adding eligible project types (including clean iron and phase-change material ceiling tiles), requiring projects be powered by electricity from at least 50% renewable sources at the bill’s effective date and 100% by 2035, and requiring project facilities to reduce greenhouse-gas emissions by at least 50%.
"House bill 15 56 adds a, new advanced clean manufacturing tax credit, to PA EDGE," Snell said during the committee meeting.
Under the amendment, the maximum credit per taxpayer would be reduced to $5,000,000 and the program’s annual cap would be set at $25,000,000. Qualified taxpayers would be able to apply the credit to up to 20% of their tax liability. The amendment also creates a commitment-letter process: an applicant would commit to complete the project and the Department of Revenue would reserve the credits until the project is finished and meets the program’s standards.
Chairman Samuelson framed the amendment as aligning the new credit with prior EDGE incentives and said the $25 million annual cap ‘‘fits more in line with those other EDGE tax credits that passed the House.’'
"This would be 25,000,000 in addition to what I just said," Samuelson added when describing how the new cap would sit alongside existing EDGE limits.
Representative Gaydos questioned the size of the overall EDGE package and whether adding another eligible category would dilute funds available to other credits. In response, Samuelson listed existing caps on related EDGE credits — including $15 million per year for aviation fuel and $10 million for semiconductors — and said the committee’s amendment would add $25 million for the clean-manufacturing credit.
Representative Krogewski, a cosponsor, said he supported the measure as a way to encourage sustainable manufacturing and to bring production back to Pennsylvania and the United States.
The committee recorded no formal negative roll-call objections to the amendment and later approved the bill as amended. The clerk announced the final committee vote on HB 1556, as amended, as 15 in favor and 11 opposed.
The measure now moves to the next step in the legislative process. With no further business, the committee adjourned and listed a future meeting date in December.
(Reporting in this item is based solely on the committee’s proceedings and statements made on the record in the committee meeting.)