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HB 500PENNSYLVANIASession 2025-2026State Billpassed chamber

Passed

Pennsylvania House Bill 500 Restructures Tax Credits for Energy, Milk Processing, Semiconductors, Geothermal, and Sustainable Aviation Fuel

Original title: 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.

Last action · May 22, 2025: Referred to FINANCE, May 22, 2025Sponsors: John Inglis and 42 others

Bill progressHistory & official text ↓

Introduced

Committee

Floor Vote

Passed

Law

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What This Bill Would Do

Pennsylvania House Bill 500 repeals several existing economic development tax credit programs and replaces or restructures them with new incentives—including the Reliable Energy Investment Tax Credit, revised milk processing tax credits, updated clean hydrogen and semiconductor provisions, and new tax credits for geothermal energy and sustainable aviation fuel—effective in 60 days.

Why it matters

Changes tax credit availability, capital investment thresholds, job creation minimums, and compliance requirements for companies operating in Pennsylvania's energy, manufacturing, and agricultural sectors, directly impacting state tax revenue allocation and reporting mandates to the General Assembly.

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

Qualified taxpayers

Companies meeting capital investment, job creation, and wage requirements are eligible to apply for, utilize, carry over, sell, or assign tax credits across various energy and manufacturing sectors.

Directly affected

Construction workers

Workers employed during the construction of project facilities must be paid at least the prevailing minimum wage and benefit rates determined by the Department of Labor and Industry.

Directly affected

Department of Revenue

The department is tasked with reviewing applications, issuing certificates, conducting audits, issuing assessments, and submitting annual reconciliation reports to the General Assembly.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What is the Reliable Energy Investment Tax Credit?

It is a new tax credit providing up to $300,000 per new or additional megawatt of maximum facility output (capped at $100,000,000 per project) for qualified reliable energy generation or storage facilities meeting emissions thresholds.

How does the revised milk processing tax credit reward organic dairy?

Qualifying uses of milk utilizing at least 80% organic dairy are eligible for an additional $1.15 per of milk on top of the base rate of up to $2.30 per hundred weight.

What are the eligibility requirements for geothermal energy tax credits?

Qualified taxpayers must operate a project facility at an eligible geothermal site (such as municipal/county/agency property, brownfields, environmental justice areas, land banks, or abandoned wells) and make a capital investment of at least $25,000,000.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

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Where This Stands

Currently passed chamber. The next step in the legislative lifecycle is Law.

Procedural history

12 actions

May 22, 2025SenateCommittee
Referred to FINANCE, May 22, 2025
May 22, 2025Senate
In the Senate
May 14, 2025HouseFloor
Third consideration and final passage, May 14, 2025 (108-95)
May 14, 2025House
Re-reported as amended, May 14, 2025
May 14, 2025House
Amended in House Committee on APPROPRIATIONS, May 14, 2025
May 13, 2025House
Re-committed to APPROPRIATIONS, May 13, 2025

Show 6 earlier actions

May 13, 2025HouseFloor
Second consideration, with amendments, May 13, 2025
May 12, 2025House
Removed from table, May 12, 2025
May 7, 2025House
Laid on the table, May 7, 2025
May 7, 2025HouseIntroduced
First consideration, May 7, 2025
May 7, 2025House
Reported as amended, May 7, 2025
Apr 23, 2025HouseCommittee
Referred to FINANCE, April 23, 2025

Version history & redline

4 versions on file

Comparing Printer's No. 1708 → Printer's No. 1716

removed addedOfficial text

PRIOR PRINTER'S NOS. 1477, 1652 1652, 1708 PRINTER'S NO. 1708 1716 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL No. 500 Session of 2025 INTRODUCED BY INGLIS, MATZIE, MEHAFFIE, VENKAT, HOWARD, HILL- EVANS, MADDEN, SCHLOSSBERG, GIRAL, […] PROKOPIAK, POWELL, ABNEY, D. MILLER, SALISBURY, MERSKI, PROBST, SCHWEYER, McANDREW, BIZZARRO, T. DAVIS, CERRATO, GALLAGHER, HADDOCK, KINKEAD, WEBSTER AND K.HARRIS, APRIL 23, 2025 AS AMENDED REPORTED FROM COMMITTEE ON SECOND CONSIDERATION, APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 13, 14, 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 […] fuel; and, in application of Prevailing Wage Act, further providing for definitions. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: <-- <--

Redline computed from the official version text (record lane).View this version →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Related Legislation

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Pennsylvania House Bill 22 excludes all salary earned by National Guard members for active and nonactive duty from state personal income tax. The chan

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift98% confidence

Restructuring of PA EDGE Tax Credits

The legislation repeals older manufacturing and milk processing tax credits while introducing structured incentives for reliable energy, geothermal, and sustainable aviation fuel.

Department of Revenue Department of Community and Economic Development

Connected Entities

Pennsylvania Public Utility Commission, Department of Revenue, Department of Community and Economic Development and 2 more

OrganizationPennsylvania Public Utility Commission“Jointly submits effectiveness reports with the department.”Map →

OrganizationDepartment of Revenue“Administers tax credits, reviews applications, issues certificates, and conducts”Map →

OrganizationDepartment of Community and Economic Development“Jointly develops guidelines, enters into commitment letters, and submits reports”Map →

OrganizationDepartment of Labor and Industry“Determines prevailing minimum wage and benefit rates for crafts and classificati”Map →

OrganizationInternal Revenue Service“Published Revenue Procedure 2025-14 and Internal Revenue Bulletin referenced for”Map →

Sources

Open source document

www.palegis.us

Analysis Score

0–100

Significance85
How much this matters to a regular citizen
Controversy40
Intensity of disagreement among stakeholders
Entertainment5
Compellingness for a non-policy-wonk reader
Buzz35
Current news / social attention level

Publisher tools

What This Bill Would Do

Who It Would Affect

Key Facts

Frequently Asked Questions

News Coverage

Where This Stands

Procedural history

Version history & redline

Lobbying Activity

Full breakdown

Sponsors

Related Legislation

Pennsylvania House Bill 1018 requires projects receiving public funds or tax incentives to use U.S.-produced steel

Pennsylvania House Bill 834 requires monthly online posting of agency spending records and quarterly Auditor General affirmations

Pennsylvania House Bill 22 exempts National Guard pay from state personal income tax

Discoveries

Restructuring of PA EDGE Tax Credits

Connected Entities

Sources

Analysis Score

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