SB 336 — An Act providing for solar energy facilities on certain land; imposing powers and duties on the Department of Agriculture; and providing for a tax credit.

PRINTER'S NO.    272

                   THE GENERAL ASSEMBLY OF PENNSYLVANIA



                       SENATE BILL
                       No. 336
                                                Session of
                                                  2025

     INTRODUCED BY MASTRIANO, BARTOLOTTA, BAKER, J. WARD AND DUSH,
        FEBRUARY 26, 2025

     REFERRED TO AGRICULTURE AND RURAL AFFAIRS, FEBRUARY 26, 2025


                                     AN ACT
 1   Providing for solar energy facilities on certain land; imposing
 2      powers and duties on the Department of Agriculture; and
 3      providing for a tax credit.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6   Section 1.   Short title.
 7      This act shall be known and may be cited as the Solar Energy
 8   Facility Location Act.
 9   Section 2.   Definitions.
10      The following words and phrases when used in this act shall
11   have the meanings given to them in this section unless the
12   context clearly indicates otherwise:
13      "Abandoned mine."     An area of land that is no longer in use
14   and is placed upon, under or above the surface of another area
15   of land by a person, used in extracting a natural resource from
16   its natural deposits in the earth by any means or method.
17      "Agricultural land."     Land that is used or capable of being
18   used for a normal agricultural operation.
 1      "Brownfield."     A property, the expansion, redevelopment or
 2   reuse of which may be complicated by the presence or potential
 3   presence of a hazardous substance, pollutant or contaminant.
 4      "Capped landfill."     A capped facility of trash and garbage
 5   disposal in which the waste is buried between layers of earth.
 6      "Department."     The Department of Agriculture of the
 7   Commonwealth.
 8      "Normal agricultural operation."     As defined in section 2 of
 9   the act of June 10, 1982 (P.L.454, No.133), referred to as the
10   Right-to-Farm Law.
11      "Parking facility canopy."     A structure that is constructed
12   over the top of a public or private parking lot.
13      "Solar energy facility."     A facility that is designed for the
14   supply of merchant power and utilizes solar energy to produce or
15   distribute energy.
16      "Warehouse rooftop."     A roof that is located on a building or
17   group of buildings primarily used for indoor storage, transfer
18   and distribution of products and materials, but not including
19   retail uses or a truck terminal. The term includes a roof of a
20   distribution facility, fulfillment center, logistics facility
21   and similar buildings.
22   Section 3.   Location of solar energy facilities.
23      A solar energy facility may not be located on agricultural
24   land with soil that is deemed Class 1 or Class 2 within the Land
25   Capability Classification System of the Natural Resource
26   Conservation Service.
27   Section 4.   Soil classification certification.
28      (a)   Request for determination.--The owner of agricultural
29   land that wishes to lease the land for the purposes of siting a
30   solar energy facility must submit a written request to the

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 1   department for a determination as to whether the land is
 2   considered Class 1 or Class 2 soil. The request must be
 3   submitted in such form and manner as prescribed by the
 4   department.
 5      (b)   Review and certification by department.--
 6            (1)   Within 30 days of receipt of a written request
 7      submitted under subsection (a), the department shall review
 8      the request to determine whether the proposed solar facility
 9      is located on Class 1 or Class 2 soil.
10            (2)   The department shall provide notification to the
11      requester after a determination is made electronically, if
12      electronic contact information is available, and by certified
13      and registered mail.
14   Section 5.     Tax credit.
15      (a)   Eligibility.--The owner of a solar energy facility may
16   claim an annual tax credit against the owner's tax liability
17   under Article IV of the act of March 4, 1971 (P.L.6, No.2),
18   known as the Tax Reform Code of 1971.
19      (b)   Application.--
20            (1)   The owner of a solar energy facility may apply to
21      the Department of Community and Economic Development of the
22      Commonwealth for a tax credit under this section. The
23      application shall be on the form required by the Department
24      of Community and Economic Development.
25            (2)   The application must be submitted to the Department
26      of Community and Economic Development by February 1 of each
27      year for the tax credit claimed during the prior calendar
28      year.
29      (c)   Amount.--The tax credit shall be equal to 3¢ per
30   kilowatt, but not to exceed 30% of the project's cost of

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 1   electricity generated for the first 10 years of the solar energy
 2   facility's operation.
 3      (d)    Annual limit.--The total amount of tax credits issued by
 4   the Department of Community and Economic Development under this
 5   section may not exceed $5,000,000 in a fiscal year.
 6      (e)    Review and approval.--
 7             (1)   The Department of Community and Economic Development
 8      shall review and approve applications meeting the
 9      requirements of this article by March 20 of each year.
10             (2)   The Department of Community and Economic Development
11      may require information necessary to document that a solar
12      energy facility qualifies as an eligible facility.
13             (3)   In the review of an application for a tax credit
14      under this section, the Department of Community and Economic
15      Development shall consult with the Department of
16      Environmental Protection with respect to whether a solar
17      facility qualifies as an eligible facility under subsection
18      (g).
19             (4)   Prior to approving an application, the applicant
20      must have:
21                   (i)    filed all required State tax reports and returns
22             for all applicable taxable years; and
23                   (ii)   paid any balance of State tax due as determined
24             by assessment or determination by the Department of
25             Revenue and not under timely appeal.
26             (5)   Upon approval, the Department of Community and
27      Economic Development shall issue a certificate stating the
28      amount of tax credit granted for electricity generated in the
29      prior calendar year.
30      (f)    Availability of tax credits.--Tax credits under this

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 1   section shall be made available by the Department of Community
 2   and Economic Development on a first-come, first-served basis
 3   within the limitation established under subsection (d).
 4      (g)   Land eligible for tax credit.--Any of the following land
 5   is eligible for the tax credit:
 6            (1)   Land that is located on a brownfield.
 7            (2)   Land that consists of an abandoned mine.
 8            (3)   Land that consists of a capped landfill.
 9            (4)   Land that consists of a warehouse rooftop.
10            (5)   Land that consists of a parking facility canopy.
11   Section 6.     Applicability.
12      This act does not apply to:
13            (1)   A solar energy facility sited or under a solar
14      energy facility agreement entered into prior to the effective
15      date of this paragraph.
16            (2)   A solar energy facility with a nameplate capacity of
17      two megawatts AC or less.
18            (3)   A customer-generator as defined in section 2 of the
19      act of November 30, 2004 (P.L.1672, No.213), known as the
20      Alternative Energy Portfolio Standards Act.
21            (4)   Agricultural land where Class 1 and Class 2 soils
22      make up a de minimis portion, as determined by the
23      department, of the total land parcel proposed for a solar
24      energy facility.
25   Section 7.     Enforcement.
26      An action to enjoin the development or construction, or to
27   require the removal of, a solar energy facility in violation of
28   this act may be brought, in the name of the Commonwealth, by the
29   Attorney General, the department or the municipality at issue.
30   Section 8.     Effective date.

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1     This act shall take effect in 60 days.




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