Pennsylvania Economic Development for a Growing Economy Tax Credits

The Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits authorized under Article XVII-L of the Tax Reform Code of 1971, as amended under Act 108 of 2022 is a collection of tax credit programs designed to attract new investment from businesses resulting in economic growth and job creation for the Commonwealth. Tax Credits for qualified taxpayers are approved by the Pennsylvania Department of Revenue.

Programs

1. Local Resource Manufacturing Tax Credit Program
2. Pennsylvania Milk Processing Tax Credit Program
   
3. Regional Clean Hydrogen Hub Tax Credit Program
   
4. Semiconductor Manufacturing, Biomedical Manufacturing and Research Tax Credit Program
   

The PA EDGE tax credit is limited to 20% of any of the qualified taxpayer’s qualified tax liabilities incurred in the taxable year for which the credit was approved. A qualified tax liability includes corporate net income tax, bank and trust companies shares tax, title insurance companies shares tax, insurance premiums tax, gross receipts tax, mutual thrift institutions tax and personal income tax liabilities for owners of pass-through entities receiving the credit.

If the qualified taxpayer receiving the PA EDGE tax credit holds the credit through the end of the calendar year in which the credit was granted, the taxpayer may apply for approval to sell or assign the credit to a buyer or assignee. A buyer or assignee may offset up to 50% of its own qualified tax liability with the purchased or assigned credit. The PA EDGE tax credits must be used by the buyer or assignee in the calendar year the purchase or assignment is made. Credits may only be purchased or assigned once.

For additional information on Pennsylvania Economic Development for a Growing Economy Tax Credits, contact the Office of Economic Development at 717-772-3896 or ra-rveconomic-dev@pa.gov.