Pennsylvania 2025-2026 Regular Session

Pennsylvania House Bill HB1556

Introduced
6/17/25  

Caption

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for an advanced clean manufacturing project and further providing for definitions.

Impact

The enactment of HB1556 is anticipated to have a substantial impact on state laws regulating manufacturing and environmental standards. It introduces a tax credit equivalent to 30% of the qualified production costs associated with approved clean manufacturing projects, capping the total available credits at $50 million yearly. This financial incentive is designed to encourage investment in eco-friendly technologies and equipment, which aligns with Pennsylvania's broader goals of improving environmental sustainability and economic growth within the manufacturing industry.

Summary

House Bill 1556, also known as the Advanced Clean Manufacturing Project bill, proposes amendments to the Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits. The key focus of this bill is the introduction of tax incentives aimed at promoting clean manufacturing projects across the state. This includes the production of materials such as clean steel, clean aluminum, clean cement, and advanced technologies like energy-efficient turbines and hydrogen electrolyzers. The intent of these incentives is to bolster the manufacturing sector while significantly reducing greenhouse gas emissions.

Sentiment

Discussions surrounding HB1556 exhibit a mixture of optimism and skepticism. Proponents, predominantly from the manufacturing sector and environmental advocacy groups, view the bill as a favorable approach to drive innovation and economic recovery in the aftermath of economic downturns. However, there are concerns regarding the effectiveness and enforceability of the provisions, particularly how they will ensure consistent emission reductions and create substantial job opportunities in under-resourced areas.

Contention

One notable point of contention is the balance between supporting economic growth through tax incentives while ensuring that those benefits do not come at the expense of regulatory oversight. Critics worry that the broad description of 'qualified advanced clean manufacturing projects' might allow for loopholes that could lead to insufficient environmental protections. Therefore, careful monitoring and evaluation criteria must be established to assess both economic and environmental outcomes from the credits granted under HB1556.

Companion Bills

No companion bills found.

Previously Filed As

PA HB2402

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, further providing for definitions and for application and approval of tax credit, providing for sustainable aviation fuel and further providing for definitions.

PA HB2565

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) Tax Credits, repealing provisions relating to local resource manufacturing and for Pennsylvania Milk Processing and providing for Reliable Energy Investment Tax Credit and for Pennsylvania Milk Processing; in Regional Clean Hydrogen Hubs, further providing for definitions, for eligibility, for application and approval of tax credit, for use of tax credits and for applicability; in semiconductor manufacturing and biomedical manufacturing and research, further providing for definitions and for application and approval of tax credit and providing for sustainable aviation fuel; and, in application of Prevailing Wage Act, further providing for definitions.

PA HB1215

In regional clean hydrogen hubs, further providing for definitions, for eligibility and for application and approval of tax credit, providing for qualifying clean hydrogen uses and further providing for guidelines and regulations.

PA HB1219

In personal income tax, further providing for classes of income and for special tax provisions for poverty and providing for alternative special tax provisions for poverty; in corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax, for consolidated reports and for manufacturing innovation and reinvestment deduction; in realty transfer tax, further providing for transfer of tax; in tax credit and tax benefit administration, further providing for definitions; in entertainment production tax credit, further providing for definitions, for credit for qualified film production expenses, for carryover, carryback and assignment of credit and for limitations; in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for biotechnology; in neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit; providing for expanded neighborhood improvement zones; in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for credit for child and dependent care employment-related expenses; providing for Public Transportation Trust Fund; and, in general provisions, further providing for underpayment of estimated tax, for method of filing and for allocation of tax credits.

PA HB2521

Providing for duties of Environmental Quality Board, for investigatory proceedings for clean hydrogen projects, for regulations for clean hydrogen projects, for applications for clean hydrogen projects and for duties of investor-owned utilities; and establishing the Clean Hydrogen Tax Credit Program.

PA HB2277

Further providing for definitions; providing for force majeure; further providing for alternative energy portfolio standards, for portfolio requirements in other states, for health and safety standards and for interagency responsibilities; providing for zero emission credits; and making editorial changes.

PA SB1190

Further providing for definitions; providing for force majeure; further providing for alternative energy portfolio standards, for portfolio requirements in other states, for health and safety standards and for interagency responsibilities; providing for zero emission credits; and making editorial changes.

PA HB1474

In Property Assessed Clean Energy Program, further providing for purpose, for definitions and for scope of work and providing for Made in America requirements.

PA HB2132

Establishing the Pennsylvania-Ireland Trade Commission and the Pennsylvania-Ireland Trade Commission Fund; imposing duties on the Department of Community and Economic Development; providing for the Entertainment Economic Enhancement Program;

PA SB757

In Treasury Department, establishing the Pennsylvania Award for Student Success Scholarship Program and the Pennsylvania Award for Student Success Scholarship Fund; in bonus and tax reports and returns and reports and records relating to tax collections, further providing for confidential information; in tax credits, further providing for Department of Community and Economic Development; in 2022-2023 budget implementation, further providing for Department of Education; and making a repeal.

Similar Bills

PA HB2565

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) Tax Credits, repealing provisions relating to local resource manufacturing and for Pennsylvania Milk Processing and providing for Reliable Energy Investment Tax Credit and for Pennsylvania Milk Processing; in Regional Clean Hydrogen Hubs, further providing for definitions, for eligibility, for application and approval of tax credit, for use of tax credits and for applicability; in semiconductor manufacturing and biomedical manufacturing and research, further providing for definitions and for application and approval of tax credit and providing for sustainable aviation fuel; and, in application of Prevailing Wage Act, further providing for definitions.

PA HB500

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) Tax Credits, repealing provisions relating to local resource manufacturing, providing for Reliable Energy Investment Tax Credit, repealing provisions relating to Pennsylvania milk processing and providing for Pennsylvania milk processing; in regional clean hydrogen hubs, further providing for definitions, for eligibility, for application and approval of tax credit, for use of tax credits and for applicability; in semiconductor manufacturing and biomedical manufacturing and research, further providing for definitions and for application and approval of tax credit and providing for geothermal energy and for sustainable aviation fuel; and, in application of Prevailing Wage Act, further providing for definitions.

PA SB500

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) Tax Credits, repealing provisions relating to local resource manufacturing, providing for Reliable Energy Investment Tax Credit, repealing provisions relating to Pennsylvania milk processing and providing for Pennsylvania milk processing; in regional clean hydrogen hubs, further providing for definitions, for eligibility, for application and approval of tax credit, for use of tax credits and for applicability; in semiconductor manufacturing and biomedical manufacturing and research, further providing for definitions and for application and approval of tax credit and providing for geothermal energy and for sustainable aviation fuel; and, in application of Prevailing Wage Act, further providing for definitions.

PA SB440

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits relating to semiconductor manufacturing and biomedical manufacturing and research, further providing for definitions, for eligibility, for application and approval of tax credit and for sale or assignment.

PA HB1215

In regional clean hydrogen hubs, further providing for definitions, for eligibility and for application and approval of tax credit, providing for qualifying clean hydrogen uses and further providing for guidelines and regulations.

PA HB1267

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits relating to semiconductor manufacturing and biomedical manufacturing and research, further providing for definitions and for application and approval of tax credit.

CA SB643

Fuel cell electric vehicle fueling infrastructure and fuel production: statewide assessment.

PA HB1219

In personal income tax, further providing for classes of income and for special tax provisions for poverty and providing for alternative special tax provisions for poverty; in corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax, for consolidated reports and for manufacturing innovation and reinvestment deduction; in realty transfer tax, further providing for transfer of tax; in tax credit and tax benefit administration, further providing for definitions; in entertainment production tax credit, further providing for definitions, for credit for qualified film production expenses, for carryover, carryback and assignment of credit and for limitations; in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for biotechnology; in neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit; providing for expanded neighborhood improvement zones; in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for credit for child and dependent care employment-related expenses; providing for Public Transportation Trust Fund; and, in general provisions, further providing for underpayment of estimated tax, for method of filing and for allocation of tax credits.