House passes both EDGE Tax Credit and Community Energy Act on a bipartisan basis. 

Building on Ben Franklin’s energy legacy, the Lightning Plan is supported by a broad coalition of leaders from the energy industry, organized labor, environmental groups, and consumer advocates. 

Independent studies confirm that the Governor’s plan will save Pennsylvanians money on their electricity bills, create energy jobs, and lead to billions in new investment in power plants and energy infrastructure.

Harrisburg, PA - This week, the Pennsylvania General Assembly passed two key components of Governor Shapiro’s commonsense energy plan, known as the “Lightning Plan,” with bipartisan support. The legislation passed includes the Pennsylvania Economic Development for a Growing Economy (EDGE) Tax Credit, which was established in 2022, but hasn’t been used, leaving billions in potential economic development untapped. Additionally, the House also passed the Community Energy Act, which would improve the ability of agriculture producers and low-income Pennsylvanians to jointly share energy resources to lower their costs.

Supported by a broad coalition of labor and industry leaders, environmental advocates, and consumer groups, the Governor’s commonsense energy plan will create jobs, lower costs for consumers, speed up permitting, and protect Pennsylvania from global instability by building more energy generation in Pennsylvania – positioning the Commonwealth to continue to be a national energy leader for decades to come.

“Pennsylvania has long been a national energy leader, from Ben Franklin to today, and my energy plan will power Pennsylvania forward by incentivizing the building of next generation energy projects in the Commonwealth,” said Governor Shapiro. “We have to meet this moment and this plan – supported by leaders from the energy industry, organized labor and environmental groups, and consumer advocates – will lower costs for consumers, create more jobs, speed up permitting, and position the Commonwealth to continue to be a national energy leader for decades to come. The time for action is now and I look forward to working with leaders in the General Assembly to get this legislation to my desk.”

Governor Shapiro highlighted the benefits of community energy while visiting Penn England Farms in Blair County last month, where a methane digester is turning farm waste into clean energy, cutting electricity costs, and generating revenue. The Lightning Plan, through the Community Energy Act, will expand access to shared digesters to help more farmers and rural communities benefit.

The EDGE Tax Credit passed today is a collection of tax credit programs designed to attract new investments from businesses in critical manufacturing and energy sectors, including semiconductors, biomedical, milk processing, and and clean, reliable, affordable energy generation and storage. The Lightning Plan proposes several tax credit modifications to ensure businesses can actually take advantage of the credit to create jobs, innovate, and grow our economy, including:

• Reliable Energy Investment Credit: Up to $100 million per facility, focused on adding clean, reliable, and affordable energy sources to the grid.
• Regional Clean Hydrogen Tax Credit: Up to $49 million annually for regional hydrogen projects, with lower thresholds to qualify.
• Semiconductor Manufacturing, Biomedical Manufacturing and Research Tax Credit: up to $8 million per year for semiconductor manufacturing and up to $2 million per year for early-stage semiconductor businesses.
• Milk Processing Tax Credit Program: Invests in Pennsylvania’s agricultural industry by providing up to $15 million in tax credits per year and $120 million total for milk processing facilities.
• Sustainable Aviation Fuel: Up to $15 million per year to produce sustainable aviation fuel (SAF) through projects that make at least a $250 million investment.

Governor Shapiro’s energy plan will provide funding for new projects through the updated tax credits, streamline energy project approvals by creating a state energy siting board to cut red tape, and increase rebates for energy-efficient appliances to help reduce household energy costs. The Lightning Plan will supercharge energy development in the Commonwealth, positioning Pennsylvania to lead the way in clean, reliable, and affordable energy for years to come.

See below for the Lightning Plan legislation in the House and the Senate:

EDGE Tax Credit

House (HB 500) - Senate (SB 500)

• Sponsored by Representative John Inglis with co-prime sponsors Representatives Rob Matzie and Tom Mehaffie; and Senator Nick Pisciottano with co-prime sponsor Senate Minority Leader Jay Costa

RESET Board

House (HB 502) - Senate (SB 502)

• Sponsored by Representative Mandy Steele and Senator John Kane

Pennsylvania Climate Emissions Reduction Act

House (HB 503) - Senate (SB 503)

• Sponsored by Representative Aerion Abney and Senator Carolyn Comitta

Pennsylvania Reliable Energy Sustainability Standard

House (HB 501) - Senate (SB 501)

• Sponsored by Representative Danielle Friel Otten and Senator Steve Santarsiero

Lowering Energy Costs for Rural Communities

House (HB 504) - Senate (SB 504)

• Sponsored by Representative Peter Schweyer and Senator Judy Schwank

Rebates to Reduce Household Energy Costs

House (HB 505) - Senate (SB 505)

• Sponsored by Representative Kyle Donahue and Senator Lisa Boscola

Read more about the Lightning Plan here.