THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY PILEGGI, TOMLINSON, BROWNE, ERICKSON, STACK, FONTANA, GREENLEAF, FARNESE, RAFFERTY, WAUGH, COSTA, MENSCH, BOSCOLA AND SOLOBAY, SEPTEMBER 7, 2011

SENATOR BRUBAKER, FINANCE, AS AMENDED, OCTOBER 17, 2011   

AN ACT

Amending the act of October 6, 1998 (P.L.705, No.92), entitled,

as amended, "An act providing for the creation of keystone

opportunity zones and keystone opportunity expansion zones to

foster economic opportunities in this Commonwealth, to

facilitate economic development, stimulate industrial,

commercial and residential improvements and prevent physical

and infrastructure deterioration of geographic areas within

this Commonwealth; authorizing expenditures; providing tax

exemptions, tax deductions, tax abatements and tax credits;

creating additional obligations of the Commonwealth and local

governmental units; and prescribing powers and duties of

certain State and local departments, agencies and officials,"

in keystone opportunity zones, further providing for

additional expansion zones; and providing for extension for

new job creation.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 301.4 of the act of October 6, 1998

(P.L.705, No.92), known as the Keystone Opportunity Zone,

Keystone Opportunity Expansion Zone and Keystone Opportunity

Improvement Zone Act, added July 10, 2008 (P.L.1014, No.79), is

amended to read:

Section 301.4.  Additional keystone opportunity expansion zones.

(a)  Establishment.--

(1)  In addition to any designations under section 301.1,

the department may designate up to 15 additional keystone

opportunity expansion zones in accordance with this section.

Each additional keystone opportunity expansion zone shall:

(i)  Not be less than ten acres in size, unless

contiguous to an existing zone.

(ii)  Not exceed, in the aggregate, a total of 350

acres.

(iii)  Be comprised of parcels that meet any of the

following criteria:

(A)  Are deteriorated, underutilized or

unoccupied on the effective date of this clause.

(B)  Are occupied by a business that:

(I)  Creates or retains at least 1,400 full-

time jobs in this Commonwealth within three years

of the designation of the keystone opportunity

expansion zone; and

(II)  Makes a capital investment of at least

$750,000,000 in the additional keystone

opportunity enhancement zone within three years

of the designation of the keystone opportunity

expansion zone.

(2)  The department shall immediately notify political

subdivisions located within the area designated.

(b)  Authorization.--Persons and businesses within an

additional keystone opportunity expansion zone authorized under

subsection (a) shall be entitled to all tax exemptions,

deductions, abatements or credits set forth under this act,

except exemptions for sales and use tax under section 511(a) or

705(a), for a period of ten years beginning January 1, 2010, and

ending on December 31, 2020. Exemptions for sales and use taxes

under sections 511 and 705 shall commence upon designation of

the zone by the department.

(c)  Application.--In order to receive a designation under

subsection (a), the department must receive an application from

a political subdivision or its designee no later than May 1,

2009. The application must contain the information required

under section 302(a)(1), (2)(i) and (ix) and (6). The

application must include all ordinances, resolutions or other

required action adopted by all political subdivisions in which

the keystone opportunity expansion zone is located providing the

tax exemptions, deductions, abatements and credits authorized

under Chapter 7. The department, in consultation with the

Department of Revenue, shall review the application and, if

approved, issue a certification of all tax exemptions,

deductions, abatements or credits under this [part] act for the

additional keystone opportunity expansion zone within three

months of receipt of the application. The department shall act

on an application under this subsection by June 30, 2009.

(d)  Unused keystone opportunity expansion zones.--

(1)  The department may designate any of the 15 remaining

keystone opportunity expansion zones established under

subsection (a) for which there was no designation by the

department as of the effective date of this subsection. To

receive a designation of a remaining keystone opportunity

expansion zone under this subsection, the department must

receive an application from a political subdivision or its

designee by November 1, 2011 June 1, 2012. The application

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must comply with subsection (c) except for the application

deadline. The department, in consultation with the Department

of Revenue, shall review the application and, if approved,

shall issue a certification of all tax exemptions,

deductions, abatements or credits under this act for the

additional keystone opportunity expansion zone within three

months of receipt of the application.

(2)  Persons and businesses within an additional keystone

opportunity expansion zone authorized under paragraph (1)  

shall be entitled to all tax exemptions, deductions,

abatements or credits set forth under this act, except

exemptions for sales and use tax under section 511(a) or

705(a), for a period of ten years beginning January 1, 2012 

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2013, and ending December 31, 2022 2023. Exemptions for sales

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and use taxes under sections 511 and 705 shall commence upon

designation of the zone by the department.

Section 2.  The act is amended by adding a section to read:

Section 301.7.  Extension for new job creation.

(a)  Extension.--The department may approve an application to

extend the exemptions, deductions, abatements and credits under

this act for a an unoccupied, deteriorated or underutilized 

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parcel in a keystone opportunity zone, keystone opportunity

expansion zone or keystone opportunity improvement zone or a

subzone for a period of nine years if the extension will result

in the creation of at least 200 new jobs.

(b)  Application.--In order to extend the tax benefits for 

unoccupied, deteriorated or underutilized parcels under

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subsection (a), the department must receive an application from

a political subdivision or its designee by March 1, 2012. The

application must contain the information required under section

302(a)(1), (2), (3), (5) and (6). The application must include

all ordinances, resolutions or other required action adopted by

all political subdivisions in which the unoccupied, deteriorated

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or underutilized parcel is located adopting the extension of all

tax exemptions, deductions, abatements and credits authorized

under Chapter 7. The department, in consultation with the

Department of Revenue, shall review the application and, if

approved, issue a certification of all tax exemptions,

deductions, abatements or credits under this chapter for the

unoccupied parcel within three months of receipt of the

application. The certification shall be effective on the day

following the expiration date of the existing zone or subzone.

(c)  Expiration.--All extensions of an unoccupied parcel

certified under subsection (a) shall expire no later than nine

years following the expiration date of the existing keystone

opportunity zone, keystone opportunity expansion zone, keystone

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opportunity subzone or keystone opportunity improvement zone.

Section 3.  This act shall take effect July 1, 2011, or 

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immediately, whichever is later.

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