This bill amends the Pennsylvania Tax Reform Code of 1971 by introducing a new subarticle, "Advanced Clean Manufacturing Project," which establishes a tax credit program aimed at promoting environmentally friendly manufacturing practices. The program allows qualified taxpayers to receive a tax credit equal to 30% of their qualified production costs, with a cap of $10 million per taxable year. The bill outlines specific definitions related to advanced clean manufacturing, including what constitutes a qualified advanced clean manufacturing project facility and the types of products eligible for the tax credit, such as clean steel, clean aluminum, and electric grid modernization equipment.

Additionally, the bill includes provisions for the establishment of a certification process for applicants seeking tax credits, with a total cap of $50 million in credits awarded per fiscal year. It also details the criteria for project certification, including job creation potential and environmental impact. The bill allows for the carry-forward of unused credits for up to five years and includes measures for recapturing credits in cases of fraud or failure to meet production standards. The new provisions will take effect 60 days after the bill's passage.

Statutes/Laws affected:
Printer's No. 1951 (Jun 17, 2025): P.L.6, No.2