HARRISBURG – The Stop New Energy Taxes Coalition, led by the Pennsylvania Chamber of Business and Industry and representing leading business and industry associations across the Commonwealth, has sent a letter to Governor Josh Shapiro and the General Assembly ahead of the governor’s upcoming Fiscal Year 2026-27 budget address, urging policymakers to avoid new or increased energy taxes and continue supporting Pennsylvania’s energy sector.
The letter points to Pennsylvania’s improving economic outlook, citing recent reports from Moody’s Analytics, Site Selection Magazine, and the U.S. Bureau of Labor Statistics that show the Commonwealth leading the Northeast in economic growth and gaining recognition for its increasingly competitive business climate. The coalition notes that affordable, reliable energy is a key driver of that progress.
The letter warns that targeting Pennsylvania’s energy sector with new taxes would raise costs for families and employers and weaken the Commonwealth’s economic competitiveness.
“Pennsylvania’s energy industries provide hundreds of thousands of family-sustaining jobs, attract private investment, and support economic growth across every region of the Commonwealth,” the letter states. “With abundant natural resources and a skilled workforce, Pennsylvania is well-positioned to build on this momentum, so long as public policy supports – rather than penalizes – this critical sector.”
The coalition also highlights the success of Pennsylvania’s existing impact fee, which the Independent Fiscal Office estimates generated nearly $240 million in 2025, a 46 percent increase from the prior year. Since 2012, the impact fee has delivered more than $2.88 billion to local governments, infrastructure projects, and environmental programs across the state.
The coalition’s letter cautions policymakers against proposals to layer a severance tax on top of the impact fee, noting that comparisons to other states ignore Pennsylvania’s broader tax and regulatory environment. The coalition instead urges lawmakers to preserve the current structure and focus on policies that support growth, job creation, and long-term revenue stability.
“Affordable energy remains a cornerstone of Pennsylvania’s economic strength,” the letter states. “We urge you to avoid proposing new or increased energy taxes and instead commit to preserving the existing impact fee structure. Doing so will support economic growth, protect consumers and employers, and help stabilize state revenues without harming one of Pennsylvania’s strongest economic assets.
Full text of the letter is available here.