Pennsylvania SB 500: 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, 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.

Bill Text

PRINTER'S NO. 1036
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 500
Session of
2025
INTRODUCED BY PISCIOTTANO, COSTA, TARTAGLIONE, SANTARSIERO,
KANE, STREET, COMITTA, COLLETT, FONTANA, SCHWANK, BOSCOLA,
HUGHES, HAYWOOD, CAPPELLETTI AND MILLER, JULY 8, 2025
REFERRED TO FINANCE, JULY 8, 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, 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.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Subarticle B of Article XVII-L of the act of
March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
1971, is repealed:
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[SUBARTICLE B
LOCAL RESOURCE MANUFACTURING
Section 1711-L. Definitions.
The following words and phrases when used in this subarticle
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Dry natural gas." Natural gas in which there are no
appreciable natural gas liquids recoverable by separation at the
wellhead.
"Fertilizer." A chemical product derived from petrochemicals
which is added to soil or land to increase fertility.
"Natural gas liquids." As defined in 58 Pa.C.S. § 3203
(relating to definitions).
"Petrochemical." Chemical products obtained from refining
and processing natural gas. The term does not include
liquefaction or other processing of natural gas for the purpose
of transport.
"Project facility." A facility located in this Commonwealth
which manufactures petrochemicals or fertilizers using dry
natural gas and which required a capital investment of at least
$400,000,000 to construct and place into service.
"Qualified taxpayer." A company that satisfies all of the
following:
(1) Purchases and uses dry natural gas produced in this
Commonwealth in the manufacture of petrochemicals or
fertilizers at a project facility in this Commonwealth that
has been placed in service on or after the effective date of
this section.
(2) Has made a capital investment of at least
$400,000,000 in order to construct the project facility and
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place the project facility into service in this Commonwealth.
(3) Has created a minimum aggregate total of 800 new
jobs and permanent jobs.
(4) Has made good faith efforts to recruit and employ,
and to encourage any contractors or subcontractors to recruit
and employ, workers from the local labor market for
employment during the construction of the project facility.
(5) Has demonstrated that the new jobs created at the
project facility or for work covered by Subarticle F are paid
at least the prevailing minimum wage and benefit rates for
each craft or classification as determined by the Department
of Labor and Industry.
(6) The construction work to place a project facility
into service shall be performed subject to the act of March
3, 1978 (P.L.6, No.3), known as the Steel Products
Procurement Act.
Section 1712-L. Eligibility.
In order to be eligible to receive a tax credit, a company
shall demonstrate the following:
(1) The company meets the requirements of a qualified
taxpayer.
(2) The use of carbon capture and sequestration
technology, or similar technologies, at the project facility
to the extent it is cost effective and feasible at the
discretion of the qualified taxpayer.
(3) Confirmation that the company has filed all required
State tax reports and returns for all applicable taxable
years and paid any balance of State tax due as determined by
assessment or determination by the department and not under
timely appeal.
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Section 1713-L. Appl