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PA Gov. Quietly Signs $2 Billion Energy Tax Credit Package

PA Gov. Quietly Signs $2 Billion Energy Tax Credit Package

Pennsylvania Governor Tom Wolf (D) has quietly signed a $2 billion tax credit package for the energy industry.

Wolf, 73, has served as the Keystone State's governor since 2015. Last week, he signed House Bill 1059 into law, benefitting the hydrogen production, milk processing, and biomedical research industries.

The final bill was the result of months of behind-the-scenes negotiations between Democrats and Republicans. 

According to a report from Spotlight PA, the "hastily passed" package will provide $50 million a year in tax breaks to eligible companies that agree to produce hydrogen for 20 years. The bill also increased an existing methane tax credit, currently set to expire in 2050, from $26.5 million to $56.5 million annually. 

Additionally, 90 cents out of every dollar offered as a tax credit will be used to encourage the use of natural gas, including $1 billion in tax incentives to hopefully attract a "hydrogen hub" to the state. 

House Speaker Bryan Cutler (R-Lancaster) spoke out about the new tax plan after it passed, noting that it might have seemed like it passed quickly but that the deal was actually long-negotiated.

“While it took a while to come together, I’m glad that it finally did," Cutler said. 

Not everyone, however, is as thrilled with the legislation. 

PennFuture President Patrick McDonnell said, “This is slapdash industrial policy at its worst that will perpetuate Pennsylvania’s addiction to fossil fuels. Intriguingly, the environmental group leader formerly served as a cabinet secretary under Wolf.

Wolf has reached his term limit and is, therefore, not running for reelection.

Pennsylvania's gubernatorial candidates are State Senator Doug Mastriano (R) and current Attorney General Josh Shapiro (D).

What do you think about Pennsylvania's new energy tax credits?

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Rebekah Barton

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