Natural Gas Impact Tax Revenues Top $278 Million for Communities, Statewide Environmental Programs
More than $2.5 billion generated since 2012 funds critical infrastructure, first-responder, and environmental programs in all 67 counties
Pennsylvania’s natural gas impact tax has generated more than $2.5 billion in new revenue since 2012, including $279 million for 2023, the state Public Utility Commission announced today. Revenues from the state’s unique tax on natural gas development –levied in addition to all other business taxes – are used for conservation efforts, infrastructure improvements, first responders and other important programs throughout the Commonwealth.
“Generating more than $2.5 billion total and a record $279 million this year, the impact tax continues to be a smart policy that provides county and local governments the flexibility to support projects tailored to individual community needs,” Marcellus Shale Coalition President David Callahan said.
“Policymakers should note that Pennsylvania’s unique approach to a severance tax allows the entire Commonwealth to benefit from the natural gas produced here,” Callahan continued. “It’s a structure that no other energy-producing state uses, providing a valuable revenue stream that directly benefits municipalities, state agencies and environmental programs.”
The $279 million distributed this year, the highest yearly return on record, represents a $44 million – or 19% – increase compared to the year prior. Like other commodities, energy production is cyclical, and favorable market conditions resulted in the year’s significant increase.
“Pennsylvania natural gas development has delivered national energy security, cleaner air, consumer and economic gains here at home and abroad. The impact tax is yet another example of how the industry supports better quality of life for all Pennsylvanians,” said Callahan.
Specifically, over $155 million will be distributed to local governments, more than $103 million will be allocated to statewide environmental programs, and more than $19.7 million will fund regulatory oversight. The breakdowns from the year’s total are as follows:
- Marcellus Legacy Fund: $103,641,907
- County Conservation Districts, State Conservation Commission: $9,276,671
- Pennsylvania Department of Environmental Protection: $6,000,000
- Fish & Boat Commission: $1,000,000
- Pennsylvania Department of Transportation: $1,000,000 (rail freight assistance)
- Pennsylvania Public Utility Commission: $1,000,000
- Office of the State Fire Commissioner: $750,000
- Pennsylvania Emergency Management Agency: $750,000
Established by Act 13 of 2012, the impact tax is levied on producers in addition to all other Pennsylvania business taxes, including personal income, corporate net income, and other applicable state taxes.
More information on the Pennsylvania Impact Fee can be found here, here, and here.
