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Senate of Pennsylvania
Session of 2019 - 2020 Regular Session


Posted: April 26, 2019 03:45 PM
From: Senator David G. Argall and Sen. John T. Yudichak
To: All Senate members
Subject: Extending the PA Coal Refuse Energy and Reclamation Tax Credit

In the near future, we will be introducing bipartisan legislation to assist coal refuse facilities in Pennsylvania. The Coal Refuse Energy and Reclamation Tax Credit currently provides tax credits to eligible facilities that generate electricity by using coal refuse for power generation. These plants generate electric power and eliminate the waste coal piles and abandoned strip mines that are a result of centuries of mining throughout Pennsylvania.

We would amend the Tax Reform Code of 1971 to grant a 10-year extension of the Coal Refuse Energy and Reclamation Tax Credit from the currently mandated year of 2026 to 2036. Our legislation would also increase the amount of tax credits to $45,000,000.

As a provision under this legislation, if a federal tax credit program is later adopted to the extent that it equals or exceeds the state program, the state program will be suspended and would relieve Pennsylvania of its entire budgetary impact.

There are currently 13 plants operating in Pennsylvania. Four of these facilities are currently operating on a seasonal basis, leading to reduced jobs and less reclamation work performed. Two plants have already closed. If we don’t provide more incentives for these facilities to remain open, not only will jobs be lost but the massive waste coal piles and pits will remain for generations to come.

Introduced as SB618