PA
Pennsylvania HB 1667: Data Center Tax Incentives and Electric Energy Gross Receipts Tax Changes
Pennsylvania House Bill 1667 proposes several changes to the state's tax code related to data centers and energy. The bill would create new educational tax credits, modify manufacturing and investment tax credits, repeal the existing Computer Data Center Equipment Incentive Program and replace it with new data center provisions, and prohibit imposing a gross receipts tax on electric energy sales. The bill also establishes a revenue-neutral reconciliation process for the gross receipts tax and imposes penalties for violations. As of late June 2026, the bill has been referred to the Rules Committee.
✓ REASONS TO SUPPORT
- Replacing the old data center incentive program with updated provisions could make Pennsylvania more competitive in attracting data center businesses, potentially creating jobs and economic activity.
- Eliminating the gross receipts tax on electric energy sales could lower costs for businesses and households that purchase electricity.
- New educational tax credits could give businesses and individuals more options to support education while reducing their tax burden.
- A revenue-neutral reconciliation process is designed to prevent unintended budget shortfalls when gross receipts tax rules change.
✕ REASONS TO OPPOSE
- Prohibiting the gross receipts tax on electric energy sales could reduce state tax revenue, potentially affecting funding available for public services.
- Repealing the existing Computer Data Center Equipment Incentive Program and replacing it with new rules may create uncertainty for businesses currently relying on the old program.
- New tax credits and incentives for data centers and manufacturers primarily benefit large businesses, which critics may argue provides limited direct benefit to average residents.
- The combination of multiple tax changes in one bill makes it difficult to fully assess the overall fiscal impact on the state budget.
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