Shapiro Wants to Repurpose $1.4B in NatGas Tax Credits for Renewables

In November 2022, PA's then-Governor, Tom Wolf, signed into law a bill providing $142 million annually in state tax credits for several purposes, including clean hydrogen hubs, natural gas use, semiconductor manufacturing, and milk processors (see PA Gov Wolf Signs into Law $2.1B Tax Credit Bill for H2, NatGas). Over 20 years, the law would provide up to $2.1 billion in tax credits (NOT payouts, but forgiveness of taxes that would otherwise be owed) for certain types of projects, including for manufacturers to use PA's homegrown Marcellus gas, turning it into things like gasoline (see NEPA Huge Deal – $6B Plant to Convert Marcellus Gas to Gasoline). Since the bill was signed into law two years ago, exactly zero dollars have been claimed, so current Gov. Josh Shapiro wants to rejigger the law (with the help of labor unions) to allow energy production to qualify for the credits. In particular, wind, solar, and natural gas used to generate electricity would qualify for the credits---but natgas must use risky CCS (carbon capture and sequestration) to qualify.

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