Pennsylvania HB 1556: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for an advanced clean manufacturing project and further providing for definitions.

Bill Text

PRIOR PRINTER'S NO. 1951 PRINTER'S NO. 2625
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1556
Session of
2025
INTRODUCED BY FIEDLER, KRAJEWSKI, INGLIS, WEBSTER, HILL-EVANS,
FREEMAN, SCHLOSSBERG, CIRESI, SANCHEZ, WAXMAN, MERSKI,
RIVERA, McNEILL, CEPEDA-FREYTIZ, D. WILLIAMS, DEASY, GUZMAN,
NEILSON, CURRY, GREEN AND BOYD, JUNE 16, 2025
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, NOVEMBER 19, 2025
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in Pennsylvania Economic Development for a
Growing Economy (PA EDGE) tax credits, providing for an
advanced clean manufacturing project and further providing
for definitions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Article XVII-L of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
by adding a subarticle to read:
SUBARTICLE E.3
ADVANCED CLEAN MANUFACTURING PROJECT
Section 1790-L. Definitions.
The following words and phrases when used in this subarticle
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shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Advanced clean manufacturing project facility." A facility
located in this Commonwealth that is owned and operated by a
qualified taxpayer and where clean steel, clean aluminum, clean
cement, clean glass, CLEAN IRON, electric grid modernization
equipment, energy-efficient heat pumps, energy-efficient
turbines or hydrogen electrolyzers are produced.
"ADVANCED CLEAN MANUFACTURING TAX CREDIT" OR "CREDIT." A TAX
CREDIT FOR WHICH THE DEPARTMENT HAS EXECUTED AN ADVANCED CLEAN
MANUFACTURING TAX CREDIT COMMITMENT LETTER UNDER SECTION 1790.5-
L.
"CLEAN IRON." IRON PRODUCED USING METHODS THAT REDUCE
GREENHOUSE GAS EMISSIONS BY AT LEAST 75% COMPARED TO STANDARD
FOSSIL-BASED PRODUCTION METHODS.
"Clean steel, clean aluminum, clean cement or clean glass."
Steel produced WITHOUT COAL OR FOSSIL-FUEL-BASED IRON INPUTS
using recycled scrap or direct reduced iron, or aluminum
produced using recycled aluminum or inert anodes, or cement
produced using low-carbon precursors OR WITH A CLINKER-TO-CEMENT
RATIO UNDER 0.67 , or glass produced using recycled glass, which
is also produced using energy from:
(1) e lectric arc furnaces or other thermal energy
generation or storage systems powered by electricity derived
from renewable sources, AT LEAST 50% RENEWABLE SOURCES BY THE
EFFECTIVE DATE OF THIS DEFINITION AND 100% RENEWABLE SOURCES
BY 2035, THROUGH A POWER PURCHASE AGREEMENT OR ONSITE
GENERATION, including any type or category of facility in
Table 1 of Revenue Procedure 2025-14 published by the
Internal Revenue Service in 2025-7 Internal Revenue Bulletin
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770-771 or any successor table published in the Internal
Revenue Bulletin, or a source defined as a Tier I alternative
energy source under the act of November 30, 2004 (P.L.1672,
No.213), known as the Alternative Energy Portfolio Standards
Act, or any source defined similarly under a successor
standard;
(2) hydrogen produced through a process IN DIRECT
REDUCED IRON OR NOVEL REDUCTION FACILITIES that results in a
life cycle greenhouse gas emissions rate of less than 4
kilograms of CO2e per kilogram of hydrogen, as described
under 26 CFR 1.45V-1(a)(13) (relating to credit for
production of clean hydrogen); or
(3) any other production process such that the carbon
dioxide emissions generated during the process of producing
steel is at least 75% below the national industry average, as
determined by the secretary. PRODUCTION PROCESS IS NO GREATER
THAN THE 25TH PERCENTILE FOR THE INDUSTRY NATIONALLY, AS
DETERMINED BY THE DEPARTMENT OF ENVIRONMENTAL PROTECTION.
"Credit." The qualified advanced clean manufacturing tax
credit established under this subarticle.
"Department." The Department of Revenue of the Commonwealth.
"DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT." THE
DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT OF THE
COMMONWEALTH.
"DEPARTMENT OF ENVIRONMENTAL PROTECTION." THE DEPARTMENT OF
ENVIRONMENTAL PROTECTION OF THE COMMONWEALTH.
"Electric grid modernization equipment." The term includes:
(1) Distribution transformers, as defined under 42
U.S.C. § 6291(35) (relating to definitions).
(2) Batteries, including thermal batteries, battery
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