In 2022, Pennsylvania took a bold step to attract important new investment by creating the Pennsylvania Economic Development for a Growing Economy (PA EDGE) Tax Credit Program to bring next-generation energy, fuel, and dairy development to our Commonwealth.  In the last three years, the need for those investments has grown, but limitations in the design of EDGE have prevented it from serving its intended purposes.  Not one entity has been eligible for a tax credit through EDGE.
 
Please join me in fixing this powerful tool in Pennsylvania’s development arsenal with a refined EDGE Tax Credit (“EDGE 2.0”), updated to reflect five pressing needs:
 
1: A new Reliable Energy Investment Tax Credit will encourage the development of baseload power and allow existing facilities to invest in upgrades to quickly surge their capacity to meet the growing need for energy.  It will provide up to $100 million per facility for three years.  This all-of-the-above reliable energy tax credit—the first in the nation at the state level—will enable a wider range of reliable and advanced energy projects to qualify. The credit will lower energy costs, increase grid stability, and create good-paying clean energy jobs, all while protecting Pennsylvanians’ clean air and clean water.
 
2: A revised Dairy Production Tax Credit that allows a wider array of investment to qualify by investing at least $50 million and creating 100 new jobs. It also provides an additional 50% increase in value to specialized dairy production that includes organic products. These improvements will support our farmers and rural communities, and increase the supply of basic groceries like milk, cheese, and butter—lowering costs for consumers.
 
3: A revised Regional Clean Hydrogen Tax Credit will provide up to $49 million annually for projects that support the growth of Pennsylvania’s hydrogen economy—including projects within Pennsylvania’s two Hydrogen Hubs. This expands eligibility to a wider range of projects, reflecting the diverse needs of Pennsylvania’s Eastern and Western Hydrogen Hubs. The Hydrogen Hubs, with the support of these tax credits, will create more than 41,000 good-paying jobs and ensure Pennsylvania continues to be an energy leader for decades to come.
 
4: Updates to the Semiconductor Manufacturing and Biomedical Manufacturing and Research Tax Credit ensure that early-stage semiconductor businesses can participate in the credit program. These updates will drive forward some of the most innovative manufacturing and research opportunities in the Commonwealth.
 
5: A new Sustainable Aviation Fuel Tax Credit will provide up to $15 million per year for an investor who makes a $250 million capital investment and creates at least 400 jobs at a facility to produce sustainable aviation fuel (SAF). This will unlock a new growth sector for Pennsylvania’s natural gas industry, support our farming communities, and provide a low-carbon energy source for aviation here in the Commonwealth and to destinations around the globe.
 
Taken together, EDGE 2.0 will unlock billions of dollars in new investment and jumpstart the next generation of energy projects across our Commonwealth.  Please join us in supporting this opportunity to grow our energy sector and expand economic development in Pennsylvania.

Statutes/Laws affected:
Printer's No. 1036 (Jul 08, 2025): P.L.6, No.2, P.L.6, No.3, P.L.4, No.2