This bill amends the Tax Reform Code of 1971 to introduce a new subarticle focused on "Advanced Clean Manufacturing Projects." It establishes definitions for various terms related to clean manufacturing, including "advanced clean manufacturing project facility," which refers to facilities producing clean steel, aluminum, cement, glass, and other energy-efficient technologies. The bill outlines a tax credit program that allows qualified taxpayers to receive a credit equal to 30% of their qualified production costs, capped at $10 million per taxable year. The total amount of tax credits awarded annually is limited to $50 million.

Additionally, the bill includes provisions for the certification of projects, application processes, and criteria for determining which projects will receive credits. It mandates that the Secretary of Environmental Protection, in consultation with other departments, establish the program and set procedures for verifying greenhouse gas emission reductions. The bill also 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 expire after December 31, 2035, unless reauthorized by the General Assembly.

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