HB 2301 — 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, further providing for definitions and providing for tax credits for critical minerals extraction.

Bill Text

• Printer's No. PN3024 View text Current pdf

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The bill amends the Tax Reform Code of 1971 to include tax credits for the extraction of critical minerals and updates definitions related to upstream companies and project facilities.

• Section 1702-L

  "Upstream company." The term includes a company that is engaged in the exploration, development, manufacturing, production, processing, refining or transportation of natural gas, clean hydrogen, critical minerals, milk or products used in semiconductor manufacturing, biomedical manufacturing or biomedical research in this Commonwealth.

  Expands the definition of 'upstream company' to include those involved in critical minerals and other specific areas.

• Section 1791-L

  A project facility as defined in section 1793.1-L.

  Updates the definition of 'qualified project facility' to include new references to critical minerals extraction.

• Section 1793.1-L

  definitions related to "Critical mineral," "Produced water," "Project facility," and "Qualified taxpayer" to establish new criteria for tax credits.

  Creates definitions necessary for the implementation of new tax credits for critical minerals extraction.

• Section 1793.2-L

  Eligibility criteria for receiving tax credits based on the status of qualified taxpayers.

  Establishes new eligibility criteria for tax credits under the critical minerals extraction program.

• Section 1793.3-L

  Establishes application and approval process for tax credits, including deadlines and required documentation.

  Implements an application process for companies to apply for tax credits for critical minerals extraction.

• Section 1793.4-L

  Outlines the use of tax credits and limitations on carryover and application against tax liabilities.

  Defines how tax credits may be used by qualified taxpayers.

• Section 1793.5-L

  Prohibits carrying back or obtaining refunds based on tax credits issued under this subarticle.

  Clarifies the non-transferability of tax credits in terms of carryback or refund.

• Section 1793.6-L

  Details the process for the sale or assignment of tax credits, including eligibility criteria.

  Allows qualified taxpayers to sell or assign tax credits under specific conditions.

• Section 1793.8-L

  Introduces provisions related to pass-through entities and their election regarding tax credits.

  Enables pass-through entities to elect to utilize tax credits, enhancing their applicability.

Action History

1. March 19, 2026

   Referred to Finance

Sponsors

• Jonathan Fritz · Primary
• Tina Pickett · Cosponsor
• Jeff Olsommer · Cosponsor
• Kathy L. Rapp · Cosponsor
• Michael Stender · Cosponsor
• Mike Armanini · Cosponsor
• Jacob D. Banta · Cosponsor

Subjects