HB 2565 Pennsylvania House · 2023-2024 Regular Session

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 and for Pennsylvania Milk Processing and providing for Reliable Energy Investment Tax Credit and 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 sustainable aviation fuel; and, in application of Prevailing Wage Act, further providing for definitions.

This bill updates Pennsylvania's tax credit program to support semiconductor, biomedical, and clean energy industries while removing older credits for local resource manufacturing and milk processing. Companies seeking these credits must meet specific requirements, such as investing at least $20 million in new facilities, creating 100 permanent jobs, and paying prevailing wages. The legislation also introduces a new tax credit for sustainable aviation fuel and clarifies rules for clean hydrogen hubs. Additionally, the bill expands definitions for early-stage semiconductor businesses to include those with less than $10 million in revenue.