Gov. Wolf Proposes Severance Tax to Rebuild Pennsylvania’s Infrastructure

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Pennsylvania Governor Tom Wolf is proposing a severance tax on extracting natural gas to raise funds for new infrastructure developments.

On Thursday, Wolf announced Restore Pennsylvania, a new major infrastructure initiative, which will in

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vest $4.5 billion on high impact projects statewide over the next four years. He wants the state to become a leader in the 21st century in terms development, infrastructure, and technology.

According to the governor, Restore Pennsylvania will obtain funding from revenues on commonsense severance tax.

Pennsylvania’s natural gas production is around 18 billion cubic feet per day (bcfd), the second largest in the United States. However, it is the only state without a severance tax on extracting natural gas. Over the past two years, the state legislature rejected proposals to impose severance tax.

“It is far past time that Pennsylvanians stop allowing our commonwealth to be the only state losing out on the opportunity to reinvest in our communities,” said Wolf.