Legislation recently advanced by the state House Finance Committee would create tax credits that support the future development of energy production.
House Bill 500 would update existing PA EDGE Tax Credits that have not been used since the credits were enacted in 2022.
A Reliable Energy Investment Tax Credit would apply to new energy facilities, or expanded facilities, that provide a minimum of 100 megawatts of new power. The amount of the tax credit would depend on the size of the project. Credits would be provided at a rate of $300,000 per new or additional megawatt up to $1 million.
The goal of the bill is to establish opportunities to support power generators.
“This tax credit would add reliable power to our grid as a buffer for the looming shortages predicted by industry leaders,” state Rep. Tom Mehaffie (R-Dauphin) said. “I appreciate my colleagues’ support of the initiative, and I look forward to reviving these tax credits in a way that would allow them to drive future development of baseload energy, positioning Pennsylvania as an energy powerhouse for the years to come.”
Mehaffie introduced a package of bills with state Reps. John Inglis (D-Allegheny) and Rob Matzie (D-Beaver) that now moves to the full House for consideration.