Pennsylvania State Sen. Lisa Boscola (D-Bethlehem) announced she will be introducing legislation to support the state’s nuclear manufacturing supply chain through tax incentives.
According to a memo circulated to her Senate colleagues, Boscola asked for support for legislation she intends to introduce that would create an Advanced Nuclear Manufacturing Tax Credit within the state’s Economic Development for a Growing Economy, or PA EDGE, program.
“The tax credit would support investments that establish, expand, or re-equip Pennsylvania facilities to manufacture small modular reactors, microreactors, or qualifying nuclear-specific components. Awards would be tied to new investment and permanent job creation and would be subject to program limits, reporting requirements, and accountability safeguards,” she wrote.
Boscola said the regional grid providing the state with energy is growing at a rapid rate, and that PJM has forecast that summer peak demand will grow 3.6 percent annually over the next 10 years. In comparison, PJM’s 2021 forecast only projected a .3 percent demand growth. The recent increase in demand is driven in part by data centers and other large loads, she said. She advocated for the state competing for the investment in manufacturing needed to support the state’s generation supply chain and energy buildout.
“The competition is already underway,” she wrote. “Last year, Indiana created a new tax credit for small modular reactor manufacturing, while Tennessee and Texas are appropriating tens of millions to nuclear development and supply-chain projects in their states.”
Her proposal would advance two priority sectors identified in Pennsylvania’s 10-year strategic plan for economic development: manufacturing and energy. The legislation will create a targeted tax credit that would give nuclear reactor and nuclear component manufacturers a reason to expand and locate their facilities and jobs in Pennsylvania, while connecting the state’s nuclear expertise with the emerging advanced nuclear supply chain.