In 2022, Pennsylvania created PA Edge tax credits in an effort to boost the creation of new power supply in the state.

The tax credits have never been used.

Now, a bipartisan group of House members that include Republican Tom Mehaffe and Democrats John Inglis and Rob Matzie are trying to tweak the tax credit program to make it more useful to power providers, including a Reliable Energy Investment Tax Credit that would be applicable to any new energy facilities or expanded facilities with a minimum of 100 megawatts of new power. The tax credits would 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.

It all looks good in theory – just like the PA Edge tax credits did three years ago.

But looking good on paper and being useful in real life are different things. For the new tax credit package to have any impact on actually bringing new power online, the House members will have to get Gov. Josh Shapiro on board and then convince power providers that they can actually get new power projects permitted and approved. That may be easier with President Donald Trump in office than it was under President Joe Biden, whose EPA limited construction of natural gas pipelines.

Power demand is increasing, both in Pennsylvania and the entire Northeastern region of the United States. Power produced here in the commonwealth is being exported to New York state as the Empire State’s clean power plans struggle to keep up with demand. So we know we have to do something to increase power production – but until state lawmakers and Shapiro get on the same page we will remain at the starting line in the race to bring more power online.

Energy tax credits to bring new power online make a lot of sense – as long as the rest of our state policies align with the tax credits. Otherwise, it’s a waste of time and, no pun intended, energy.