Testifiers emphasize necessity of clean manufacturing incentives proposed by Reps. Fiedler, Krajewski, Inglis
House Finance Committee holds public hearing on H.B. 1556
Pennsylvania House Democratic Caucus October 15, 2025 | 10:48 AM
HARRISBURG, Oct. 15 – Amid a global boom in advanced clean industries, the House Finance Committee last week convened a public hearing on H.B. 1556, the Clean Manufacturing Tax Credit bill.
The three main sponsors of the bill, Rep. Elizabeth Fiedler and Rep. Rick Krajewski, both D-Phila.; and Rep. John Inglis, D-Allegheny, spoke about the two-fold intent of the bill to cement the commonwealth’s standing as a leader in emerging markets of the advanced clean manufacturing sector and to minimize environmental harm.
A recent report revealed that in 2023, advanced clean manufacturing alone accounted for around 4% of global GDP growth and nearly 10% of global investment growth. Pennsylvania is poised to get “first-mover” advantages in emerging industries such as clean steel by incentivizing existing businesses to modernize and attracting new businesses. Clean steel demand is expected to equal 35% of current crude steel production by 2050. The commonwealth already has significant steel assets it can leverage to make the most of this emerging industry.
“For generations, our commonwealth has led the way in powering America’s progress – from the steel milIs of Pittsburgh to the advanced materials labs of today,” said Fiedler.
“But global demand is rapidly shifting away from these industrial materials to advanced clean materials. That shift threatens the future of Pennsylvania’s manufacturing industry – and countless family sustaining jobs. This bill isn’t about picking winners and losers; it’s about ensuring that the commonwealth’s industries are all winners in interstate and international markets.”
The bill would offer a 30% tax credit for qualified production costs for an advanced clean manufacturing project. Fiedler said that by covering operational costs, the tax credit would motivate companies to stay in Pennsylvania, especially as most other state incentives cover only up-front costs.
An "advanced clean manufacturing facility" is defined as a facility located within Pennsylvania where clean steel, clean aluminum, clean cement, clean glass, electric grid modernization equipment, energy-efficient heat pumps, energy-efficient turbines or hydrogen electrolyzers are produced.
At the hearing, experts from the Environmental Law and Policy Center, the University of Pittsburgh Law School, and Industrious Labs testified on how the bill could encourage innovation within Pennsylvania’s existing industries including steel, concrete and cement, and glass and grid components. A representative from the Rocky Mountain Institute highlighted the competitive advantage the bill would offer the commonwealth, noting that few other states have implemented production tax credits as proposed in H.B. 1556.
“We need to be sure that we are taking steps to create an environment that is conducive to investments in all forms of advanced manufacturing and energy generation,” Inglis said.
“With our bill, we can provide a tax credit that diversifies the commonwealth’s energy portfolio, creates manufacturing jobs and supports our existing industries – that checks all the boxes!”
Pennsylvania is already a manufacturing powerhouse: manufacturing represents 566,000 jobs, nearly 10% of all jobs in the state, as well as $116 billion in economic impact. The steel industry remains a major part of that, Fiedler said. According to the PA Steel Alliance, $33.1 billion of Pennsylvania's $55.3 billion economic output is created directly by the primary metal manufacturing industry.
“We cannot live in a fantasy, ignoring the reality of the climate crisis and the effect it will continue to have on Pennsylvania’s manufacturing industry,” Krajewski said.
“Clean energy is the future. We must seize the moment, invest deeply in clean manufacturing, and bring back more of the stable, family-sustaining jobs that working people can rely on.”