May. 07, 2025
HARRISBURG – Legislation to create tax credits to support future development of reliable energy production passed the House Finance Committee today, according to Rep. Tom Mehaffie (R-Dauphin), who is helping to lead the effort.
“This tax credit would add reliable power to our grid as a buffer for the looming shortages predicted by industry leaders,” Mehaffie said. “I appreciate my colleagues' support of the initiative, and I look forward to reviving these tax credits in a way that would allow them to drive future development of baseload energy, positioning Pennsylvania as an energy powerhouse for the years to come.”
House Bill 500 would update the existing PA EDGE Tax Credits that have never been used since enacted in 2022. Among the changes would be a retooled Reliable Energy Investment Tax Credit that would affect new energy facilities or expanded facilities that provide a minimum of 100 megawatts of new power.
Mehaffie introduced a package of bills with Reps. John Inglis (D-Allegheny) and Rob Matzie (D-Beaver). Recognizing that Pennsylvania is a leader in energy production, the proposed tax credits would establish opportunities to support generators of power, further strengthening Pennsylvania’s energy supply during this time of growing need. The tax credits scale to the size of the project by providing credits at a rate of $300,000 per new or additional megawatt, up to $1 million.
Much of the increased demand for energy comes from the electric needs of data centers and artificial intelligence. As an example, a recent private power purchase agreement is allowing for resumed production at Three Mile Island to accommodate a Microsoft data center. It is a $1.6 billion upgrade undertaken without any taxpayer money. The current redevelopment plans would not be eligible for a Reliable Energy Investment Tax Credit, but Constellation Energy’s future projects to increase production by at least 100 megawatts may be eligible.
“Pennsylvania needs the support to be able to properly accommodate these data centers as well as increased demand from commercial and residential growth,” Mehaffie said.
The package of bills now goes to the full House for its consideration.
Representative Thomas L. Mehaffie III
106th Legislative District
Pennsylvania House of Representatives
Media Contact: Jennifer Fitch
717-260-6563
jfitch@pahousegop.com
RepMehaffie.com / Facebook.com/RepMehaffie
