Pennsylvania Governor Proposes Tax Credits for Hydrogen-Powered Energy Projects
Key Ideas
  • Governor Josh Shapiro aims to fast-track big power plant construction in Pennsylvania, offering tax breaks for projects using hydrogen to address the energy crunch and increase competitiveness.
  • Shapiro's proposal includes creating the Pennsylvania Reliable Energy Siting and Electric Transition Board to streamline permitting for new energy projects and provide tax credits for hydrogen-based electricity production and aviation fuel.
  • The tax credits could reach up to $100 million per year for power plants, $49 million per year for hydrogen fuel users, and $15 million per year for aviation fuel producers, aligning with federal efforts to combat climate change and promote hydrogen-related projects.
  • While Shapiro's energy plan faces criticism from Republican lawmakers, it garners support from renewable energy advocates and business groups, emphasizing the importance of energy in Pennsylvania's economic development.
Governor Josh Shapiro of Pennsylvania announced plans to accelerate the construction of large power plants in the state by offering substantial tax breaks for projects utilizing hydrogen. This initiative aims to address the looming energy crisis in Pennsylvania, which could lead to increased electricity costs. The proposal includes the establishment of the Pennsylvania Reliable Energy Siting and Electric Transition Board to simplify the permitting process for new energy ventures. The tax credits proposed by Shapiro target projects involved in generating electricity using hydrogen and producing hydrogen-based aviation fuel. The incentives could amount to $100 million annually for power plants and up to $49 million and $15 million per year for users of hydrogen fuel and aviation fuel producers, respectively. These measures align with federal regulations introduced by former President Joe Biden to combat climate change by reducing greenhouse gas emissions. While Shapiro's energy plan has faced opposition from Republican legislators, it has received praise from advocates of renewable energy and certain business groups. The governor's focus on enhancing Pennsylvania's energy sector is seen as crucial for the state's competitiveness and economic growth. Despite previous unsuccessful attempts to implement similar initiatives, Shapiro remains optimistic about the current proposal's potential impact on the state's energy landscape. One specific project that could benefit from Shapiro's plan is a proposed $1.5 billion hydrogen-based fuel facility by CNX Resources at Pittsburgh's airport. This project is contingent on the approval of tax credits for coal mine methane, stressing the importance of federal support for initiatives aligned with climate change goals. The increasing demand for energy, particularly driven by cloud computing and artificial intelligence, underscores the necessity for innovative energy solutions to meet these growing needs while transitioning away from fossil fuels.
ADVANCEH2

Our vision is to be the world's leading online platform for advancing the use of hydrogen as a critical piece needed to deliver net-zero initiatives and the promise of a clean H2 energy future.

© 2025 AdvanceH2, LLC. All rights reserved.