PA HB2301

Creates a new tax credit of $20 per kilogram for extracting critical minerals from produced water (wastewater from oil and gas wells) at Pennsylvania facilities, with a minimum $1,000,000 capital investment required to qualify.

Caps total annual tax credits at $25,000,000 statewide and $5,000,000 per company per fiscal year, with credits applicable against up to 20% of a taxpayer's qualified tax liability.

Allows tax credits to be carried forward for four years, sold or assigned to other companies (with priority offering periods to upstream and downstream companies), or transferred to pass-through entity shareholders, members, or partners.

Adds "critical minerals" to the definition of upstream company under the existing PA EDGE tax credit program, expanding eligibility for related economic development incentives.

Program applies to produced water use from January 1, 2027, through December 31, 2039, with application authority expiring December 31, 2040; requires annual reporting and a 10-year reconciliation report to the General Assembly.