Rep. Steve Samuelson (D-Northampton), Majority Chair of the Committee noted the Committee reported out House Bill 2650 (Webster-D-Montgomery) last week adding Gov. Shapiro’s GRID Standards as conditions for receiving the state data center tax credit.
The House Energy Committee also approved legislation last week-- House Bill 2359 (Ciresi-D-Montgomery)-- that adds similar conditions and a ban on nondisclosure agreements for those receiving the credit. Read more here.
House Bill 2198 (Vitali-D-Delaware) would repeal the credit entirely, Rep. Samuelson explained
“This started as a refund back in the 2016 tax code. It was expanded in 2021. And if you've been looking in the budget books, the estimates for this tax exemption have been increasing.
“In the budget book from this February, it was estimated at about $41 million last year, $114 million this year, $188 next year.
“And over the next five years, according to the projections, there's a potential that could reach $517 million,” said Rep. Samuelson.
Rep. Thomas Kutz (R-Cumberland) said-- “I believe in the underlying language of the bill and that we should be taxing fairly in our Commonwealth.
“I think an extra $517 million projected in several out years is an important step to addressing the structural deficit that we have in this [budget] and to provide real tax relief for everyday Pennsylvanians who are asking for it by making sure that these companies coming in to build data centers are a net positive to our environment with paying the sales and use tax owed on their operation.
“So I'm pleased to support this. I think there will be strong bipartisan support for this proposal and I urge my colleagues for an affirmative vote.”
Rep. Valerie Gaydos (R-Allegheny) said-- “I also agree that House Bill 2198 is a good bill. I think that if consumers aren't going to get a sales tax break or exemption on their home computer equipment, then we should not be giving this to big corporations.”
Rep. Keith Greiner (R-Lancaster), Minority Chair of the Committee, said-- “I do think in the environment that we're in [is] a little bit different maybe 10 or 11 years ago as we try to draw business to Pennsylvania.
“Now they are coming. I do think with the magnitude of the taxes, I do think there's a fair share component as Rep. Gaydos said when it comes to individuals not getting a tax break.
“And I just think overall, I think it makes sense just with everything that's going on and the infrastructure that is occurring that I'm encouraging the Committee to vote affirmatively for this bill.”
The bill was then referred to the House Rules Committee as all bills are this time of year.
Click Here for House Fiscal Note & Summary.
Click Here to watch a video of the meeting.
Rep. Steve Samuelson (D-Northampton) serves as Majority Chair of the House Finance Committee and Rep. Keith Greiner (R-Lancaster) serves as Minority Chair.
Related Articles This Week:
-- Hundreds Of Residents From Communities Across PA Dealing With A.I. Data Center Development Rally At State Capitol To Support Bipartisan Legislation To Enact A 3-Year A.I. Data Center Moratorium [PaEN]
-- PA House Passed 20 A.I. Data Center Bills, Many By Lopsided Bipartisan Votes; PA Senate Acts On Tax Changes [PaEN]
-- PA House Passes Bill Giving Individual Municipalities Authority To Pause Consideration Of A.I. Data Center Proposals For 6 Months [PaEN]
-- PA House Nearly Unanimously Passes Bill To Repeal State Data Center Computer Equipment Sales Tax Exemption [PaEN]
-- PA House Passes Bill Limiting State Data Center Sales Tax Exemption To Those Developers Following Gov. Shapiro's Responsible Infrastructure Development Standards [PaEN]
-- PJM Interconnection Holds Next Generation Capacity Auction June 30, Results To Be Announced July 14 [PaEN]
-- PJM Adds New Emergency Procedures To Deal With Strained Grid: A Capacity Advisory; Directive For Data Centers To Use Backup Generators [PaEN]
-- Lt. Gov. Davis Brings Together Utility Industry Experts To Highlight Solutions To Rising Energy Costs
-- Senate Democratic Policy Committee Holds Hearing On Solutions To Lower Consumer Electric Bills
NewsClips:
-- Pittsburgh Business Times: Environmental Groups Push PA Lawmakers To Pass HB 1834 To Protect Ratepayers, Regulate A.I. Data Centers
-- PA Capital-Star: PA House Passes Bill With $1.7 Billion Tax Cut On Electricity, Reins In Public Utility Company Profits [Electric, Natural Gas, Water, Wastewater] By Setting New Rate Formula
-- House Unanimously Passed Bill To Base All Electric, Natural Gas, Water And Wastewater Rates On A Market-Based Return On Equity To Address Increasing Utility Bills [House Bill 2224]
-- The Citizens’ Voice: Project Hazelnut A.I. Data Center Offers $10,000 To Hazle Twp. Households As An Incentive To Approve The Plan [4,505 Households In Twp. - $45 Million]
-- PennLive: Amid Growing Voter Outcry, A.I. Data Centers Have Emerged As An Election Issue For PA Lawmakers
-- Republican Herald: Mount Carmel Area Residents Concerned About Data Centers Launch New Grassroots Group Aimed At Giving Coal Region Communities A Stronger Voice
-- PennLive: Western PA Coal Towns Are Ground Zero For A.I. Data Centers: ‘A Boom Coming’
-- Pittsburgh Business Times: How A.I. Data Centers Lost The PR War And What It Means For Business
-- AP: A.I. Is An Energy And Water Hog, Here’s What You Can Do To Counter That
-- Utility Dive: North American Electric Reliability Corp: Deployable Generation Reserves Shrinking As Coal, Gas-Fired Power Plants Forced Outage Rates Rise
-- Utility Dive: US DOE Orders Keeping Power Plants Open Beyond Their Closure Dates Are Incurring $550 Million In Added Costs, What Are The Benefits?
-- Wall Street Journal: A.I. Data Center Boom Sparking Third Wave Of Inflation - Cost Of Computer Chips - Following Energy, Labor & Constructions Costs
[Posted: June 23, 2026] PA Environment Digest
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