Pennsylvania 2025_0 Regular Session Status: Passed House 25 D cosponsors

HB 1556 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for an advanced clean manufacturing project and further providing for definitions.

Last action — Referred to FINANCE, Feb. 13, 2026

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill has passed the House. Introduced June 17, 2025. It now moves to the second chamber.

Next likely step: consideration and a floor vote in the Senate.

Odds of enactment

Moderate chance

Based on the sponsor, cosponsors, and committee posture, this bill has a moderate chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Advancing 58% · moderate confidence

  • Passed House

    Current position in the legislative process.

  • 25 sponsors

    1 primary, 24 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (25 D).

  • Cleared a recorded vote

    Passed 1 recorded vote so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Summary

Advanced Clean Manufacturing Tax Credit

Bill Text

What changed in the latest version

224 added · 431 removed

Plain-language change summary

In the latest version of Bill HB 1556, the term "clean iron" has been added, which specifically refers to iron produced with significantly lower greenhouse gas emissions compared to traditional methods. Additionally, the bill now emphasizes the use of energy-efficient machinery and equipment, like heat pumps and turbines. These changes highlight a stronger focus on promoting advanced manufacturing techniques that minimize environmental impact, which is important for supporting sustainability and reducing carbon emissions in the industry.

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PRIOR PRINTER'S NO.
PRINTER'S NO.
1951 PRINTER'S NO.
1951 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.
2625 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.
WILLIAMS, DEASY, GUZMAN, NEILSON, CURRY, GREEN AND BOYD, JUNE 16, 2025 AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, NOVEMBER 19, 2025 AN ACT Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An and enumerating certain subjects of taxation and imposingg taxes thereon;
WILLIAMS, DEASY AND GUZMAN, JUNE 16, 2025 REFERRED TO COMMITTEE ON FINANCE, JUNE 17, 2025 AN ACT Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reform and State taxation by codifying taxes thereon;
providing procedures for the payment, collection, administration and enforcement thereof;
providing procedures for the payment,osing collection, administration and enforcement thereof;
"Advanced clean manufacturing project facility." A facility located in this Commonwealth that is owned and operated by a qualified taxpayer and where clean steel, clean aluminum, clean cement, clean glass, CLEAN IRON, electric grid modernization <-- equipment, energy-efficient heat pumps, energy-efficient turbines or hydrogen electrolyzers are produced.
"Advanced clean manufacturing project facility." A facility located in this Commonwealth that is owned and operated by a qualified taxpayer and where clean steel, clean aluminum, clean cement, clean glass, electric grid modernization equipment, energy-efficient heat pumps, energy-efficient turbines or hydrogen electrolyzers are produced.
"ADVANCED CLEAN MANUFACTURING TAX CREDIT" OR "CREDIT." A TAX <-- CREDIT FOR WHICH THE DEPARTMENT HAS EXECUTED AN ADVANCED CLEAN MANUFACTURING TAX CREDIT COMMITMENT LETTER UNDER SECTION 1790.5- L.
"Clean steel, clean aluminum, clean cement or clean glass." Steel produced using recycled scrap or direct reduced iron, or aluminum produced using recycled aluminum or inert anodes, or cement produced using low-carbon precursors, or glass produced using recycled glass, which is also produced using energy from:
"CLEAN IRON." IRON PRODUCED USING METHODS THAT REDUCE GREENHOUSE GAS EMISSIONS BY AT LEAST 75% COMPARED TO STANDARD FOSSIL-BASED PRODUCTION METHODS.
(1) electric arc furnaces or other thermal energy generation or storage systems powered by electricity derived from renewable sources, including any type or category of facility in Table 1 of Revenue Procedure 2025-14 published by the Internal Revenue Service in 2025-7 Internal Revenue Bulletin 770-771 or any successor table published in the Internal Revenue Bulletin, or a source defined as a Tier I alternative energy source under the act of November 30, 2004 (P.L.1672, No.213), known as the Alternative Energy Portfolio Standards Act, or any source defined similarly under a successor standard;
"Clean steel, clean aluminum, clean cement or clean glass." Steel produced WITHOUT COAL OR FOSSIL-FUEL-BASED IRON INPUTS <-- using recycled scrap or direct reduced iron, or aluminum produced using recycled aluminum or inert anodes, or cement produced using low-carbon precursors OR WITH A CLINKER-TO-CEMENT <-- RATIO UNDER 0.67, or glass produced using recycled glass, which is also produced using energy from:
(2) hydrogen produced through a process that results in a life cycle greenhouse gas emissions rate of less than 4 kilograms of CO2e per kilogram of hydrogen, as described under 26 CFR 1.45V-1(a)(13) (relating to credit for production of clean hydrogen);
(1) electric arc furnaces or other thermal energy generation or storage systems powered by electricity derived from renewable sources, AT LEAST 50% RENEWABLE SOURCES BY THE <-- EFFECTIVE DATE OF THIS DEFINITION AND 100% RENEWABLE SOURCES BY 2035, THROUGH A POWER PURCHASE AGREEMENT OR ONSITE GENERATION, including any type or category of facility in Table 1 of Revenue Procedure 2025-14 published by the Internal Revenue Service in 2025-7 Internal Revenue Bulletin 20250HB1556PN2625 - 2 - 770-771 or any successor table published in the Internal Revenue Bulletin, or a source defined as a Tier I alternative energy source under the act of November 30, 2004 (P.L.1672, No.213), known as the Alternative Energy Portfolio Standards Act, or any source defined similarly under a successor standard;
or (3) any other production process such that the carbon 20250HB1556PN1951 - 2 - dioxide emissions generated during the process of producing steel is at least 75% below the national industry average, as determined by the secretary.
(2) hydrogen produced through a process IN DIRECT <-- REDUCED IRON OR NOVEL REDUCTION FACILITIES that results in a life cycle greenhouse gas emissions rate of less than 4 kilograms of CO2e per kilogram of hydrogen, as described under 26 CFR 1.45V-1(a)(13) (relating to credit for production of clean hydrogen);
"Credit." The qualified advanced clean manufacturing tax credit established under this subarticle.
or (3) any other production process such that the carbon dioxide emissions generated during the process of producing <-- steel is at least 75% below the national industry average, as determined by the secretary.
PRODUCTION PROCESS IS NO GREATER <-- THAN THE 25TH PERCENTILE FOR THE INDUSTRY NATIONALLY, AS DETERMINED BY THE DEPARTMENT OF ENVIRONMENTAL PROTECTION.
"Credit." The qualified advanced clean manufacturing tax <-- credit established under this subarticle.
"DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT." THE <-- DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT OF THE COMMONWEALTH.
"DEPARTMENT OF ENVIRONMENTAL PROTECTION." THE DEPARTMENT OF ENVIRONMENTAL PROTECTION OF THE COMMONWEALTH.
(2) Batteries, including thermal batteries, battery 20250HB1556PN2625 - 3 - energy storage systems, fuel cells or any technology defined as "energy storage technology" in 26 U.S.C.
(2) Batteries, including thermal batteries, battery energy storage systems, fuel cells or any technology defined as "energy storage technology" in 26 U.S.C.
(3) ELECTRICAL STEEL.
<-- "ELECTRICAL STEEL." SPECIALTY STEEL SUITABLE FOR SPECIALIZED USES IN THE CORES OF ELECTROMAGNETIC DEVICES, DISTRIBUTION TRANSFORMERS OR ELECTRIC GENERATORS, DUE TO ITS MAGNETIC PROPERTIES.
THE TERM SHALL INCLUDE AMORPHOUS STEEL.
"Energy-efficient turbines." A turbine designed for use in a combined-cycle power plant and capable of achieving a combined- cycle efficiency of at least 65%, or a turbine designed for use in a hydroelectric facility and capable of achieving an efficiency of at least 90%, USING ANY COMMONLY ACCEPTED INDUSTRY <-- MEASUREMENT OF TURBINE EFFICIENCY.
"Energy-efficient turbines." A turbine designed for use in a combined-cycle power plant and capable of achieving a combined- cycle efficiency of at least 65%, or a turbine designed for use in a hydroelectric facility and capable of achieving an efficiency of at least 90%.
"PASS-THROUGH ENTITY." A PARTNERSHIP AS DEFINED IN SECTION <-- 301(N.0) OR A PENNSYLVANIA S CORPORATION AS DEFINED IN SECTION 301(N.1).
"Qualified advanced clean manufacturing project." A project 20250HB1556PN1951 - 3 - which either:
"PHASE CHANGE MATERIAL CEILING TILE." A CEILING TILE OR PANEL DESIGNED FOR USE IN BUILDING INTERIORS THAT INCORPORATES 20250HB1556PN2625 - 4 - ONE OR MORE PHASE CHANGE MATERIALS INTENDED TO ABSORB, STORE AND RELEASE THERMAL ENERGY AS THE MATERIAL CHANGES PHASE BETWEEN SOLID AND LIQUID OR OTHER PHYSICAL STATES, FOR THE PURPOSE OF MODERATING INDOOR TEMPERATURE FLUCTUATIONS AND IMPROVING ENERGY EFFICIENCY.
"Qualified advanced clean manufacturing project." PROJECT" OR <-- "PROJECT." A project FOR WHICH A COMMITMENT LETTER HAS BEEN <-- EXECUTED UNDER SECTION 1790.5-L, which either:
or <-- (iii) energy-efficient heat pumps, energy-efficient turbines or hydrogen electrolyzers.;
or (iii) energy-efficient heat pumps, energy-efficient turbines or hydrogen electrolyzers.
<-- (IV) CLEAN IRON;
(2) Otherwise re-equips an industrial or manufacturing facility for the production of clean steel, clean aluminum, clean cement or clean glass with equipment designed to reduce greenhouse gas emissions at the facility by at least 75%.
OR (V) PHASE CHANGE MATERIAL CEILING TILES.
"Qualified production costs." Expenditures made by a qualified taxpayer that are directly attributable to the production of clean steel, clean aluminum, clean cement, clean glass, electric grid modernization equipment, energy-efficient heat pumps, energy-efficient turbines or hydrogen electrolyzers, including, but not limited to, capital investment, operating costs, labor and raw materials, tangible property used as an integral part of the qualified advanced clean manufacturing project facility or any other tangible property necessary for re-equipping, expanding or establishing a qualified advanced clean manufacturing project facility.
(2) Otherwise re-equips an industrial or manufacturing facility for the production of clean steel, clean aluminum, clean cement or, clean glass OR CLEAN IRON, with equipment <-- designed to reduce greenhouse gas emissions at the facility by at least 75% 50%.
<-- "Qualified production costs." Expenditures made by a qualified taxpayer that are directly attributable to the production of clean steel, clean aluminum, clean cement, clean glass, CLEAN IRON, electric grid modernization equipment, <-- energy-efficient heat pumps, energy-efficient turbines or hydrogen electrolyzers, OR DIRECTLY ATTRIBUTABLE TO THE <-- PRODUCTION OF CLEAN STEEL, CLEAN ALUMINUM, CLEAN CEMENT, CLEAN GLASS OR CLEAN IRON, AT A FACILITY RE-EQUIPPED WITH EQUIPMENT 20250HB1556PN2625 - 5 - DESIGNED TO REDUCE GREENHOUSE GAS EMISSIONS AT THE FACILITY BY AT LEAST 50%, including, but not limited to, capital investment, operating costs, labor and raw materials, tangible property used as an integral part of the qualified advanced clean manufacturing project facility or any other tangible property necessary for re-equipping, expanding or establishing a qualified advanced clean manufacturing project facility.
§ 195 (relating to start- up expenditures) and costs, including operational costs, associated with the construction, fabrication or building of a PILOT OR pre-commercial production line.
§ 195 (relating to start-up expenditures) and costs, including operational costs, associated with the construction, fabrication or building of a pre-commercial production line.
<-- "QUALIFIED TAX LIABILITY." A TAX OWED BY A QUALIFIED <-- TAXPAYER UNDER ARTICLE III, IV, VII, VIII OR XV, EXCLUDING ANY TAX WITHHELD BY AN EMPLOYER UNDER ARTICLE III.
"Qualified taxpayer." An entity subject to tax under Article III, IV or VI that owns or operates a qualified advanced clean 20250HB1556PN1951 - 4 - manufacturing project facility located in this Commonwealth.
"Qualified taxpayer." An entity subject to tax under Article III, IV or VI, VII, VIII OR XV that owns or operates a qualified <-- advanced clean manufacturing project facility located in this Commonwealth.
"Secretary." The Secretary of Environmental Protection of the Commonwealth.
THE TERM INCLUDES A PASS-THROUGH ENTITY.
<-- "Secretary." The Secretary of Environmental Protection of <-- the Commonwealth.
A qualified taxpayer shall be allowed a credit against the 20250HB1556PN2625 - 6 - tax imposed under Article III, IV or VI QUALIFIED TAXPAYER'S <-- QUALIFIED TAX LIABILITY for qualified production costs incurred in a taxable year.
A qualified taxpayer shall be allowed a credit against the tax imposed under Article III, IV or VI for qualified production costs incurred in a taxable year.
A QUALIFIED TAXPAYER MAY APPLY THE ADVANCED <-- CLEAN MANUFACTURING TAX CREDIT TO NOT MORE THAN 20% OF THE QUALIFIED TAXPAYER'S QUALIFIED TAX LIABILITY.
The credit shall be equal to 30% of a qualified taxpayer's qualified production costs, not to exceed $10,000,000 $5,000,000 <-- per taxable year.
The credit shall be equal to 30% of a qualified taxpayer's qualified production costs, not to exceed $10,000,000 per taxable year.
(a) Program.--Not later than 180 days after the effective date of this section, the secretary DEPARTMENT, in consultation <-- with the Department of Community and Economic Development and the department DEPARTMENT OF ENVIRONMENTAL PROTECTION, shall <-- establish a qualified advanced clean manufacturing tax credit program to consider and award certifications of credit APPROVE <-- COMMITMENT LETTERS for qualified production costs eligible for credits under this subarticle to qualified taxpayers.
(a) Program.--Not later than 180 days after the effective date of this section, the secretary, in consultation with the Department of Community and Economic Development and the department, shall establish a qualified advanced clean manufacturing tax credit program to consider and award certifications of credit for qualified production costs eligible for credits under this subarticle to qualified taxpayers.
The secretary DEPARTMENT OF ENVIRONMENTAL PROTECTION shall, not <-- later than 120 days following the effective date of this section, set procedures for calculating and verifying greenhouse gas emission reductions of a qualified advanced clean manufacturing project.
The secretary shall, not later than 120 days following the effective date of this section, set procedures for calculating and verifying greenhouse gas emission reductions of a qualified 20250HB1556PN1951 - 5 - advanced clean manufacturing project.
FOR THE PURPOSES OF DETERMINING THAT A <-- QUALIFIED PROJECT FACILITY HAS RE-EQUIPPED AN INDUSTRIAL OR MANUFACTURING FACILITY FOR THE PRODUCTION OF CLEAN STEEL, CLEAN ALUMINUM, CLEAN CEMENT, CLEAN GLASS OR CLEAN IRON, WITH EQUIPMENT DESIGNED TO REDUCE GREENHOUSE GAS EMISSIONS AT THE FACILITY BY AT LEAST 50%.
(b) Application.--The application for a credit under this subarticle shall include documentation verifying the taxpayer's status as a qualified taxpayer and the amount of qualified production costs incurred.
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(b) Application.--The application for a credit under this <-- 20250HB1556PN2625 - 7 - subarticle shall include documentation verifying the taxpayer's status as a qualified taxpayer and the amount of qualified production costs incurred.
(c) Annual cap.--The total amount of tax credits awarded under this subarticle shall not exceed $50,000,000 in any fiscal year.
(B) APPLICATION.--THE DEPARTMENT SHALL DEVELOP AN <-- APPLICATION FOR A COMMITMENT LETTER UNDER THIS SUBARTICLE TO BE POSTED ON ITS PUBLICLY ACCESSIBLE INTERNET WEBSITE.
THE APPLICATION SHALL INCLUDE DOCUMENTATION VERIFYING THE APPLICANT'S ELIGIBILITY TO BECOME A QUALIFIED TAXPAYER AND THE AMOUNT OF QUALIFIED PRODUCTION COSTS TO BE INCLUDED, AS WELL AS SUCH OTHER INFORMATION AS DEEMED NECESSARY BY THE DEPARTMENT TO ESTABLISH APPROVAL CRITERIA FOR A COMMITMENT LETTER.
(c) Annual cap.--The total amount of tax credits awarded under this subarticle shall not exceed $50,000,000 $25,000,000 <-- in any fiscal year.
(D) ADDITIONAL PROGRAM.--IF THE DEPARTMENT DETERMINES THAT <-- CREDITS UNDER THIS SECTION ARE AVAILABLE FOR REDISTRIBUTION UNDER SECTION 1790.8-L, THE DEPARTMENT MAY AUTHORIZE AN ADDITIONAL APPLICATION PERIOD FOR COMMITMENT LETTERS FOR THE ADVANCED CLEAN MANUFACTURING TAX CREDIT.
<-- (a) Application period.--Each applicant for certification under this section shall submit an application containing information the secretary may require during the two-year period beginning on the date the secretary establishes the program under section 1790.4-L(a).
(a) Application period.--Each applicant for certification under this section shall submit an application containing information the secretary may require during the two-year period beginning on the date the secretary establishes the program under section 1790.4-L(a).
20250HB1556PN2625 - 8 - (c) Period of issuance.--An applicant which receives a certification shall have three years from the date of issuance of the certification to place the project in service.
(c) Period of issuance.--An applicant which receives a certification shall have three years from the date of issuance of the certification to place the project in service.
(2) will provide the greatest net impact in avoiding or reducing air pollutants or anthropogenic emissions of greenhouse gases;
20250HB1556PN1951 - 6 - (2) will provide the greatest net impact in avoiding or reducing air pollutants or anthropogenic emissions of greenhouse gases;
SECTION 1790.5-L.
CERTIFICATION.
<-- (A) APPLICATION PERIOD.--AN APPLICANT FOR A COMMITMENT LETTER UNDER THIS SUBARTICLE MUST SUBMIT AN APPLICATION 20250HB1556PN2625 - 9 - CONTAINING INFORMATION THE DEPARTMENT MAY REQUIRE, IN CONSULTATION WITH THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT AND THE DEPARTMENT OF ENVIRONMENTAL PROTECTION.
IF THE DEPARTMENT APPROVES THE TAXPAYER'S APPLICATION FOR A COMMITMENT LETTER, THE DEPARTMENT AND THE TAXPAYER SHALL EXECUTE A COMMITMENT LETTER CONTAINING THE FOLLOWING:
(1) A DETAILED DESCRIPTION OF THE PROJECT.
(2) THE MINIMUM NUMBER OF JOBS ANTICIPATED TO BE CREATED AT THE PROJECT SITE OR SITES.
(3) THE LOCATION OF ALL PROJECT SITES.
(4) THE PERIOD IN WHICH THE QUALIFIED TAXPAYER MUST PLACE THE PROJECT INTO SERVICE AND SUBMIT EVIDENCE OF QUALIFIED PRODUCTION COSTS FOR THE ADVANCED CLEAN MANUFACTURING TAX CREDIT.
THE PERIOD MAY NOT EXCEED FOUR YEARS FROM THE DATE THE COMMITMENT LETTER IS EXECUTED.
IF THE PROJECT IS NOT PLACED INTO SERVICE BY THE PERIOD SPECIFIED IN THE COMMITMENT LETTER, THE COMMITMENT LETTER SHALL BE RENDERED INVALID.
(5) A REQUIREMENT TO MAINTAIN TAX COMPLIANCE WITH THE DEPARTMENT.
(6) THE PROJECTED AMOUNT OF QUALIFIED PRODUCTION COSTS THE QUALIFIED TAXPAYER EXPECTS TO INCUR.
(7) ANY OTHER INFORMATION THE DEPARTMENT DEEMS NECESSARY.
(B) CRITERIA.--IN DETERMINING WHICH APPLICANTS TO APPROVE FOR A COMMITMENT LETTER UNDER THIS SECTION, THE DEPARTMENT SHALL TAKE INTO CONSIDERATION ONLY THE PROJECTS THAT:
(1) HAVE A REASONABLE EXPECTATION OF COMMERCIAL VIABILITY.
(2) WILL PROVIDE THE GREATEST DIRECT AND INDIRECT JOB 20250HB1556PN2625 - 10 - CREATION WITHIN THIS COMMONWEALTH DURING THE CREDIT PERIOD.
(3) WILL PROVIDE THE GREATEST NET IMPACT IN AVOIDING OR REDUCING AIR POLLUTANTS OR ANTHROPOGENIC EMISSIONS OF GREENHOUSE GASES.
(4) HAVE THE GREATEST POTENTIAL FOR TECHNOLOGICAL INNOVATION AND COMMERCIAL DEPLOYMENT.
(5) HAVE THE LOWEST LEVELIZED COST OF GENERATED OR STORED ENERGY OR OF MEASURED REDUCTION IN ENERGY CONSUMPTION OR GREENHOUSE GAS EMISSIONS BASED ON COSTS OF THE FULL SUPPLY CHAIN.
(6) HAVE THE SHORTEST PROJECT TIME FROM CERTIFICATION TO COMPLETION.
(C) EFFECT OF COMMITMENT LETTER.--UPON EXECUTION OF THE COMMITMENT LETTER, THE DEPARTMENT SHALL RESERVE ADVANCED CLEAN MANUFACTURING TAX CREDITS FOR THE QUALIFIED TAXPAYER.
THE COMMITMENT LETTER SHALL DOCUMENT THE AVAILABILITY OF ADVANCED CLEAN MANUFACTURING TAX CREDITS FOR THE QUALIFIED TAXPAYER PENDING THE PROJECT'S PLACEMENT INTO SERVICE, THE PROJECT'S ADHERENCE TO THE TERMS OF THE COMMITMENT LETTER AND THE DEPARTMENT'S REVIEW AND APPROVAL OF QUALIFIED PRODUCTION COSTS.
(D) ISSUANCE OF CREDIT.--AFTER PLACING THE PROJECT INTO SERVICE, THE QUALIFIED TAXPAYER SHALL PRESENT EVIDENCE OF QUALIFIED PRODUCTION COSTS TO THE DEPARTMENT.
UPON REVIEW AND APPROVAL OF THE EVIDENCE PRESENTED BY THE QUALIFIED TAXPAYER, THE DEPARTMENT SHALL ISSUE TO THE QUALIFIED TAXPAYER ADVANCED CLEAN MANUFACTURING CREDITS.
SECTION 1790.5A-L.
PASS-THROUGH ENTITY.
(A) ELECTION.--IF A PASS-THROUGH ENTITY HAS ANY UNUSED CREDITS UNDER THIS SUBARTICLE, THE ENTITY MAY ELECT IN WRITING, ACCORDING TO PROCEDURES ESTABLISHED BY THE DEPARTMENT, TO 20250HB1556PN2625 - 11 - TRANSFER ALL OR A PORTION OF THE CREDIT TO SHAREHOLDERS, MEMBERS OR PARTNERS IN PROPORTION OR THE SHARE OF THE ENTITY'S DISTRIBUTIVE INCOME TO WHICH THE SHAREHOLDER, MEMBER OR PARTNER IS ENTITLED.
(B) PROHIBITION.--A PASS-THROUGH ENTITY AND A SHAREHOLDER, MEMBER OR PARTNER OF A PASS-THROUGH ENTITY MAY NOT CLAIM THE CREDIT UNDER SUBSECTION (A) FOR THE SAME NEW PROJECT.
(C) WHEN CREDIT TO BE CLAIMED.--A SHAREHOLDER, MEMBER OR PARTNER OF A PASS-THROUGH ENTITY TO WHOM A CREDIT IS TRANSFERRED UNDER SUBSECTION (A) SHALL IMMEDIATELY CLAIM THE CREDIT IN THE TAXABLE YEAR IN WHICH THE TRANSFER IS MADE.
THE SHAREHOLDER, MEMBER OR PARTNER MAY NOT CARRY FORWARD, CARRY BACK OR OBTAIN A REFUND OF THE CREDIT.
SECTION 1790.6-L.
CARRY FORWARD, SALE OR ASSIGNMENT.
(A) PERMISSABLE CARRY FORWARD.-- (1) IF THE QUALIFIED TAXPAYER CANNOT USE THE ENTIRE AMOUNT OF ADVANCED CLEAN MANUFACTURING TAX CREDITS FOR THE TAXABLE YEAR IN WHICH THE ADVANCED CLEAN MANUFACTURING TAX CREDITS ARE FIRST APPROVED, THE EXCESS MAY BE CARRIED OVER TO SUCCEEDING TAXABLE YEARS AND USED AS A CREDIT AGAINST THE QUALIFIED TAX LIABILITY FOR THE SUCCEEDING TAXABLE YEARS.
(2) EACH TIME THE ADVANCED CLEAN MANUFACTURING TAX CREDIT IS CARRIED OVER TO A SUCCEEDING TAXABLE YEAR, THE ADVANCED CLEAN MANUFACTURING TAX CREDIT SHALL BE REDUCED BY THE AMOUNT OF THE ADVANCED CLEAN MANUFACTURING TAX CREDIT USED DURING THE IMMEDIATELY PRECEDING TAXABLE YEAR.
(3) THE ADVANCED CLEAN MANUFACTURING TAX CREDIT MAY BE CARRIED OVER AND APPLIED TO SUCCEEDING TAXABLE YEARS FOR NO MORE THAN FIVE TAXABLE YEARS FOLLOWING THE FIRST TAXABLE YEAR FOR WHICH THE QUALIFIED TAXPAYER WAS ENTITLED TO CLAIM THE 20250HB1556PN2625 - 12 - CREDIT.
(B) SELLER AND ASSIGNOR PROVISIONS.--IN THE CASE OF SALE OR ASSIGNMENT, THE FOLLOWING SHALL APPLY TO THE SELLER OR ASSIGNOR:
(1) A QUALIFIED TAXPAYER, UPON APPLICATION TO AND APPROVAL BY THE DEPARTMENT, MAY SELL OR ASSIGN, IN WHOLE OR IN PART, A CREDIT GRANTED TO THE TAXPAYER UNDER THIS SUBARTICLE.
(2) BEFORE AN APPLICATION IS APPROVED, THE DEPARTMENT MUST MAKE A FINDING THAT THE APPLICANT HAS FILED ALL REQUIRED STATE TAX REPORTS AND RETURNS FOR ALL APPLICABLE TAXABLE YEARS AND PAID ANY BALANCE OF STATE TAX DUE AS DETERMINED AT SETTLEMENT, ASSESSMENT OR DETERMINATION BY THE DEPARTMENT.
(3) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE DEPARTMENT SHALL SETTLE, ASSESS OR DETERMINE THE TAX OF AN APPLICANT UNDER THIS SUBSECTION NO LATER THAN 90 DAYS AFTER FILING OF ALL REQUIRED FINAL RETURNS OR REPORTS IN ACCORDANCE WITH SECTION 806.1(A)(5) OF THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS THE FISCAL CODE.
(C) PURCHASER AND ASSIGNEE PROVISIONS.--IN THE CASE OF SALE AND ASSIGNMENT, THE FOLLOWING SHALL APPLY TO THE PURCHASER OR ASSIGNEE:
(1) THE PURCHASER OR ASSIGNEE OF ALL OR A PORTION OF A CREDIT UNDER THIS SUBARTICLE SHALL IMMEDIATELY CLAIM THE CREDIT IN THE TAXABLE YEAR IN WHICH THE PURCHASE OR ASSIGNMENT IS MADE.
(2) THE AMOUNT OF THE CREDIT THAT A PURCHASER OR ASSIGNEE MAY USE AGAINST ANY ONE QUALIFIED TAX LIABILITY MAY NOT EXCEED 20% OF SUCH QUALIFIED TAX LIABILITY FOR THE TAXABLE YEAR.
(3) THE PURCHASER OR ASSIGNEE MAY NOT CARRY FORWARD, 20250HB1556PN2625 - 13 - CARRY BACK OR OBTAIN A REFUND OF OR SELL OR ASSIGN THE CREDIT.
If the department, IN CONSULTATION WITH THE DEPARTMENT OF <-- ENVIRONMENTAL PROTECTION, determines that a qualified taxpayer has received the credit through fraud or misrepresentation, or has failed to maintain APPLICABLE clean steel, clean aluminum, <-- clean cement or clean glass production standards OR CLEAN IRON <-- PRODUCTION STANDARDS, for two consecutive taxable years, the credit shall be subject to recapture, along with applicable interest and penalties.
If the department determines that a qualified taxpayer has received the credit through fraud or misrepresentation, or has failed to maintain clean steel, clean aluminum, clean cement or clean glass production standards for two consecutive taxable years, the credit shall be subject to recapture, along with applicable interest and penalties.
The secretary DEPARTMENT may reallocate credits awarded under <-- this section if the secretary DEPARTMENT determines that:
The secretary may reallocate credits awarded under this section if the secretary determines that:
<-- (1) there is an insufficient quantity of pending qualifying applications for certification COMMITMENT LETTERS <-- under section 1790.5-L at the time of the review;
(1) there is an insufficient quantity of pending qualifying applications for certification under section 1790.5-L at the time of the review;
(2) any certification made COMMITMENT LETTER EXECUTED <-- under section 1790.5-L has been revoked under this subarticle because the project subject to the certification has been delayed as a result of third-party opposition or litigation to the proposed project;
(2) any certification made under section 1790.5-L has 20250HB1556PN1951 - 7 - been revoked under this subarticle because the project subject to the certification has been delayed as a result of third-party opposition or litigation to the proposed project;
The secretary DEPARTMENT shall, upon making a certification <-- under this section, publicly disclose the identity of an applicant under section 1790.5-L and the amount of the credit with respect to the applicant.
The secretary shall, upon making a certification under this section, publicly disclose the identity of an applicant under section 1790.5-L and the amount of the credit with respect to the applicant.
20250HB1556PN2625 - 14 - No credits shall be approved under this subarticle for taxable years beginning after December 31, 2035, unless reauthorized by the General Assembly.
No credits shall be approved under this subarticle for taxable years beginning after December 31, 2035, unless reauthorized by the General Assembly.
(2) A qualified taxpayer as defined in section 1731-L.
20250HB1556PN1951 - 8 - (2) A qualified taxpayer as defined in section 1731-L.
20250HB1556PN2625 - 15 -
20250HB1556PN1951 - 9 -
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Action History

  1. Referred to FINANCE, Feb. 13, 2026

  2. In the Senate

  3. (Remarks see House Journal Page ), Feb. 3, 2026

  4. Third consideration and final passage, Feb. 3, 2026 (104-93)

  5. Re-reported as committed, Feb. 3, 2026

  6. Re-committed to APPROPRIATIONS, Feb. 2, 2026

  7. Second consideration, Feb. 2, 2026

  8. Removed from table, Jan. 28, 2026

  9. Laid on the table, Nov. 19, 2025

  10. First consideration, Nov. 19, 2025

  11. Reported as amended, Nov. 19, 2025

  12. Referred to FINANCE, June 17, 2025

Sponsors

Sponsorship breakdown

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1 sponsors · 24 co-sponsors · 228 not signed on · 93 voted No

Sponsors (1)

Co-sponsors (24)

Not signed on (228)

228 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

FINAL PASSAGE

Passed 104 Yea · 93 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 100000
Republican 49201
Unaffiliated 0100
Total 1049301
% of votes cast 53%47%0%1%
How each member voted (198)
Member Party Vote
Stephenie Scialabba — Nay
Abigail Salisbury Democratic Yea
Aerion Abney Democratic Yea
Amen Brown Democratic Yea
Andre D. Carroll Democratic Yea
Anita Astorino Kulik Democratic Yea
Anthony A. Bellmon Democratic Yea
Arvind Venkat Democratic Yea
Ben Waxman Democratic Yea
Benjamin V. Sanchez Democratic Yea
Brandon J. Markosek Democratic Yea
Brian Munroe Democratic Yea
Bridget M. Kosierowski Democratic Yea
Carol Hill-Evans Democratic Yea
Carol Kazeem Democratic Yea
Chris Pielli Democratic Yea
Christina D. Sappey Democratic Yea
Christopher M. Rabb Democratic Yea
Dan Frankel Democratic Yea
Dan Goughnour Democratic Yea
Dan K. Williams Democratic Yea
Daniel J. Deasy Democratic Yea
Danielle Friel Otten Democratic Yea
Danilo Burgos Democratic Yea
Darisha K. Parker Democratic Yea
Dave Madsen Democratic Yea
David M. Delloso Democratic Yea
Ed Neilson Democratic Yea
Eddie Day Pashinski Democratic Yea
Elizabeth Fiedler Democratic Yea
Emily Kinkead Democratic Yea
Frank Burns Democratic Yea
G. Roni Green Democratic Yea
Gina H. Curry Democratic Yea
Greg Scott Democratic Yea
Greg Vitali Democratic Yea
Heather Boyd Democratic Yea
Ismail Smith-Wade-El Democratic Yea
Jacklyn Rusnock Democratic Yea
Jared G. Solomon Democratic Yea
Jason Dawkins Democratic Yea
Jeanne McNeill Democratic Yea
Jennifer O'Mara Democratic Yea
Jessica Benham Democratic Yea
Jim Haddock Democratic Yea
Jim Prokopiak Democratic Yea
Joanna E. McClinton Democratic Yea
Joe Ciresi Democratic Yea
Joe McAndrew Democratic Yea
Joe Webster Democratic Yea
Johanny Cepeda-Freytiz Democratic Yea
John C. Inglis III Democratic Yea
Jordan A. Harris Democratic Yea
Jose Giral Democratic Yea
Joseph C. Hohenstein Democratic Yea
Justin C. Fleming Democratic Yea
Keith S. Harris Democratic Yea
Kristine C. Howard Democratic Yea
Kyle Donahue Democratic Yea
Kyle J. Mullins Democratic Yea
La'Tasha D. Mayes Democratic Yea
Leanne Krueger Democratic Yea
Lindsay Powell Democratic Yea
Lisa A. Borowski Democratic Yea
Liz Hanbidge Democratic Yea
Malcolm Kenyatta Democratic Yea
Mandy Steele Democratic Yea
Manuel Guzman Democratic Yea
Mary Jo Daley Democratic Yea
MaryLouise Isaacson Democratic Yea
Matthew D. Bradford Democratic Yea
Maureen E. Madden Democratic Yea
Melissa Cerrato Democratic Yea
Melissa L. Shusterman Democratic Yea
Michael H. Schlossberg Democratic Yea
Morgan Cephas Democratic Yea
Nancy Guenst Democratic Yea
Napoleon J. Nelson Democratic Yea
Nathan Davidson Democratic Yea
Nikki Rivera Democratic Yea
Pat Gallagher Democratic Yea
Patrick J. Harkins Democratic Yea
Paul Friel Democratic Yea
Paul Takac Democratic Yea
Perry S. Warren Democratic Yea
Peter Schweyer Democratic Yea
Regina G. Young Democratic Yea
Rick Krajewski Democratic Yea
Robert E. Merski Democratic Yea
Robert F. Matzie Democratic Yea
Robert Freeman Democratic Yea
Ryan A. Bizzarro Democratic Yea
Scott Conklin Democratic Yea
Sean Dougherty Democratic Yea
Steve Samuelson Democratic Yea
Steven R. Malagari Democratic Yea
Tarah Probst Democratic Yea
Tarik Khan Democratic Yea
Tim Brennan Democratic Yea
Tim Briggs Democratic Yea
Tina M. Davis Democratic Yea
Aaron Bernstine Republican Nay
Abby Major Republican Nay
Alec J. Ryncavage Republican Nay
Andrew Kuzma Republican Nay
Ann Flood Republican Nay
Barbara Gleim Republican Nay
Brad Roae Republican Nay
Brenda M. Pugh Republican Nay
Brett R. Miller Republican Nay
Brian C. Rasel Republican Nay
Brian Smith Republican Nay
Bryan Cutler Republican Nay
Bud Cook Republican Nay
Carl Walker Metzgar Republican Nay
Chad G. Reichard Republican Nay
Charity Grimm Krupa Republican Nay
Clint Owlett Republican Nay
Craig T. Staats Republican Nay
Craig Williams Republican Yea
Dallas Kephart Republican Nay
Dan Moul Republican Nay
Dane Watro Republican Nay
David H. Rowe Republican Nay
David H. Zimmerman Republican Nay
David M. Maloney Republican Nay
Donna Scheuren Republican Nay
Doyle Heffley Republican Nay
Eric Davanzo Republican Nay
Eric J. Weaknecht Republican Nay
Eric R. Nelson Republican Nay
Gary W. Day Republican Nay
Jack Rader Republican Nay
Jacob D. Banta Republican Nay
James B. Struzzi Republican Nay
Jamie Barton Republican Nay
Jamie L. Flick Republican Nay
Jamie Walsh Republican Nay
Jason Ortitay Republican Nay
Jeff Olsommer Republican Nay
Jeremy Shaffer Republican Nay
Jesse Topper Republican Nay
Jill N. Cooper Republican Nay
Jim Rigby Republican Nay
Joanne Stehr Republican Nay
Joe Emrick Republican Nay
Joe Hamm Republican Nay
Joe Hogan Republican Yea
Joe Kerwin Republican Nay
John A. Lawrence Republican Not Voting
John A. Schlegel Republican Nay
Jonathan Fritz Republican Nay
Joseph D'Orsie Republican Nay
Josh Bashline Republican Nay
Joshua D. Kail Republican Nay
Kate A. Klunk Republican Nay
Kathleen C. Tomlinson Republican Yea
Kathy L. Rapp Republican Nay
Keith J. Greiner Republican Nay
Kerry A. Benninghoff Republican Nay
Kristin Marcell Republican Nay
Leslie Rossi Republican Nay
Marc S. Anderson Republican Nay
Marci Mustello Republican Nay
Mark M. Gillen Republican Nay
Marla Brown Republican Nay
Martin T. Causer Republican Nay
Martina A. White Republican Nay
Michael Stender Republican Nay
Mike Armanini Republican Nay
Mike Jones Republican Nay
Milou Mackenzie Republican Nay
Mindy Fee Republican Nay
Natalie Mihalek Republican Nay
Parke Wentling Republican Nay
Perry A. Stambaugh Republican Nay
R. Lee James Republican Nay
Rich Irvin Republican Nay
Rob W. Kauffman Republican Nay
Robert Leadbeter Republican Nay
Roman Kozak Republican Nay
Russ Diamond Republican Nay
Ryan Warner Republican Nay
Scott Barger Republican Nay
Shelby Labs Republican Nay
Sheryl M. Delozier Republican Nay
Stephanie Borowicz Republican Nay
Steven C. Mentzer Republican Nay
Thomas H. Kutz Republican Nay
Thomas L. Mehaffie Republican Yea
Tim Twardzik Republican Nay
Timothy J. O'Neal Republican Nay
Timothy R. Bonner Republican Nay
Tina Pickett Republican Nay
Tom Jones Republican Nay
Valerie S. Gaydos Republican Nay
Wendy Fink Republican Nay
Zachary Mako Republican Nay

Official roll call →

Subjects

taxation environment technology
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Frequently asked questions

What does HB 1556 do?
Advanced Clean Manufacturing Tax Credit
Who sponsors HB 1556?
HB 1556 is sponsored by Elizabeth Fiedler (Democratic), Rick Krajewski (Democratic), John C. Inglis III (Democratic), Joe Webster (Democratic), Carol Hill-Evans (Democratic), Robert Freeman (Democratic), Michael H. Schlossberg (Democratic), Joe Ciresi (Democratic), Benjamin V. Sanchez (Democratic), Ben Waxman (Democratic), Robert E. Merski (Democratic), Nikki Rivera (Democratic), Jeanne McNeill (Democratic), Johanny Cepeda-Freytiz (Democratic), Daniel J. Deasy (Democratic), Manuel Guzman (Democratic), Ed Neilson (Democratic), Gina H. Curry (Democratic), G. Roni Green (Democratic), Heather Boyd (Democratic), Justin C. Fleming (Democratic), Dave Madsen (Democratic), Robert F. Matzie (Democratic), Keith S. Harris (Democratic), and Dan K. Williams (Democratic).
What is the current status of HB 1556?
This bill has passed the House. Introduced June 17, 2025. It now moves to the second chamber.
Where can I track HB 1556?
Track HB 1556 free on One Click Politics — get push/email alerts when it moves.

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