HARRISBURG, PA — Representatives John Lawrence (R-Chester) and Michael Stender (R-Northumberland/Montour) proposed key amendments on Tuesday aimed at boosting Pennsylvania’s struggling dairy industry through targeted tax incentives. Despite their efforts, the measures failed to pass, with the House rejecting both on narrow 102-101 party-line votes.
The proposed amendments sought to revise the Economic Development for a Growing Economy (EDGE) Tax Credit Program, created in 2022. According to the lawmakers, the current program’s high investment thresholds have left it underutilized, making Pennsylvania less attractive to large-scale dairy processors compared to neighboring states. The changes were designed to support new and expanding dairy processing facilities while addressing environmental concerns.
Rep. Lawrence’s amendment to House Bill 500 focused on fostering growth in dairy processing infrastructure. It included tax incentives to attract dairy processing plants and provisions for the adoption of environmental technologies, such as methane digesters, to mitigate nutrient runoff into the Chesapeake Bay and reduce harmful emissions.
“Pennsylvania is losing out to surrounding states like New York because of our state’s failure to be competitive in tax and regulatory policies,” said Lawrence. “My proposal would unleash construction of new dairy processing facilities across the Commonwealth and tackle significant quality-of-life issues surrounding hydrogen sulfide emissions and other environmental priorities.”
Rep. Stender’s amendment aimed to reduce barriers for existing dairy processors by lowering the capital investment threshold from $50 million to $25 million and adjusting job creation requirements from 100 to 50 new positions. These adjustments were intended to make the tax credit program more accessible for smaller in-state processors. “My amendment would have made the tax credit work for expanding existing dairy processing instead of just massive corporate projects,” Stender said. “You can’t claim to stand with agriculture while blocking the very changes Pennsylvania farmers are asking for.”
While the central amendments failed along party lines, a technical amendment by Stender, requiring milk to be measured by weight rather than volume, received unanimous approval. However, this was the only Republican proposal to move forward within the Democrat-controlled House.
The rejection of the amendments has left unresolved concerns about Pennsylvania’s competitiveness in attracting dairy processing investments. The lawmakers argued that current policies not only impact farmers’ profitability but also jeopardize environmental quality and the state’s agricultural sector.
The narrow votes highlight the challenges of securing bipartisan support on key economic priorities. Moving forward, lawmakers, industry stakeholders, and advocacy groups will likely continue seeking solutions to bolster Pennsylvania’s dairy industry and address sustainability challenges.
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