HARRISBURG – The Marcellus Shale Impact Tax will deliver more than $32.8 million in funding to communities in Bradford, Lycoming, Sullivan, Susquehanna and Union Counties, according to state Sen. Gene Yaw (R-23), Rep. Garth Everett (R-84) and Rep. Jeff Wheeland (R-83).
Impact taxes are levied in addition to regular business taxes paid by every corporation in Pennsylvania. The disbursements were based on a formula established in Act 13 of 2012 to ensure communities that are affected by natural gas drilling receive their fair share of funding for projects like road and bridge repairs, housing and other infrastructure needs. The impact tax has generated more than $1.9 billion in tax revenue to support state and local projects. Since 2011, Lycoming County has received more than $36.5 million through the impact tax, and local municipalities have received over $50 million.
More than $200 million was distributed statewide in the most recent round of funding based on natural gas production in 2019. Of that, Lycoming County will receive over $3.3 million, and local municipalities will receive over $5 million.
“The Impact Fee not only funds critical projects here locally but also a wide variety of important environmental projects in communities throughout the state,” said Yaw, who serves as Chair of the Senate Environmental Resources and Energy Committee. “The natural gas industry has been a great partner in creating new jobs and opportunities in our communities, and this week’s announcement is another reminder of the importance of this industry in Pennsylvania.”
“The U.S. natural gas and oil industry supports over 130,000 jobs in Pennsylvania and has generated nearly $2 billion in new revenues from the impact tax since 2012,” said Everett. “Not only does the industry support family-sustaining jobs for thousands of Pennsylvanians, but it gives back to the communities in which it operates and helps to make America energy-independent.”
“Natural gas and oil production in Pennsylvania is a major key to helping America unlock energy security,” said Wheeland. “The impact tax revenue not only shows that the industry is a major boon to our state economy, but it can help our communities in times of revenue uncertainty. Year after year, we are glad to see many of our local improvement projects able to be funded by the impact tax.”
Impact tax funding has been used locally to support projects like the Lycoming County Groundwater Quality Monitoring Program, Grafius Run Watershed Project, Montoursville Indian Park Nature Trail, Muncy Creek Streambank Restoration and Protection Project and many more.
A complete list of disbursements to counties and municipalities is available on the Pennsylvania Public Utility Commission’s website at www.puc.state.pa.us.
The oil and gas industry supports over 8,100 jobs within the 5-county area of Lycoming, Union, Bradford, Sullivan, and Susquehanna counties.