Ahead of the governor’s upcoming fiscal year 2026-2027 budget address on Feb. 3, the Stop New Energy Taxes Coalition urged state policymakers to avoid new or increased energy taxes and to continue supporting Pennsylvania’s energy sector.
Led by the Pennsylvania Chamber of Business and Industry and representing leading business and industry associations across the commonwealth, the coalition’s members asked Gov. Josh Shapiro and the General Assembly to maintain successful policies that support their efforts.
“Pennsylvania’s energy industries provide hundreds of thousands of family-sustaining jobs, attract private investment, and support economic growth across every region of the commonwealth,” the coalition wrote in a Jan. 29 letter sent to Shapiro. “With abundant natural resources and a skilled workforce, Pennsylvania is well-positioned to build on this momentum, so long as public policy supports — rather than penalizes — this critical sector.”
In addition to the Pennsylvania Chamber of Business and Industry, the Stop New Energy Taxes Coalition includes the American Petroleum Institute – Pennsylvania; the Associated Pennsylvania Constructors; the Associated Builders and Contractors – Keystone Chapter; the Keystone Contractors Association; the Manufacturers & Business Association; the Marcellus Shale Coalition; the National Federation of Independent Business – Pennsylvania; the Pennsylvania Chemical Industry Council; the Pennsylvania Council of General Contractors; the Pennsylvania Independent Oil & Gas Association; the Pennsylvania Independent Petroleum Producers; the Pennsylvania Manufacturers’ Association; the Pennsylvania Motor Truck Association; the Pennsylvania Septage Management Association; the Pennsylvania State Grange Performance Racing Industry; and the Specialty Equipment Market Association.
While the organizations wrote that they recognize Pennsylvania faces significant fiscal challenges, they pointed out that targeting the energy sector with new taxes would risk slowing growth and undermining one of the state’s most reliable revenue generators, according to their letter.
“The House and Senate have introduced legislation that would implement punitive severance taxes on natural gas production,” they wrote. “Layering a severance tax on top of the existing [natural gas impact fee] structure would increase costs, discourage investment, and ultimately reduce the long-term benefits the energy industry delivers to the commonwealth.”
The coalition noted that the success of Pennsylvania’s existing impact fee has delivered more than $2.88 billion to local governments, infrastructure projects, and environmental programs across the state, with the Independent Fiscal Office estimating that the fee generated nearly $240 million in 2025, a 46-percent increase from the prior year, according to the letter.
Instead, the coalition members urged Shapiro to preserve the current structure and focus on policies that support growth, job creation, and long-term revenue stability.
“Affordable energy remains a cornerstone of Pennsylvania’s economic strength,” wrote the members. “We urge you to avoid proposing new or increased energy taxes and instead commit to preserving the existing impact fee structure.
“Doing so will support economic growth, protect consumers and employers, and help stabilize state revenues without harming one of Pennsylvania’s strongest economic assets,” they added.