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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | January 12, 2023 11:55 AM |
|---|---|
| From: | Representative Robert Freeman |
| To: | All House members |
| Subject: | Factory or Mill Buildings and Economic Revitalization |
| In the near future, I intend to introduce legislation amending the Tax Reform Code of 1971 to establish tax incentives for owners to rehabilitate factory or mill buildings, assist businesses located in the buildings, and facilitate lenders making loans to the businesses, in order to promote the redevelopment and reuse of these vacant industrial buildings in our municipalities. Using a building for the purpose other than what it was originally intended for is a way to reuse buildings that have stood in our communities for decades. Some of the buildings have withstood the test of time for more than 100 years. They might be neglected, but they are still standing. My bill would provide an incentive to breathe new life into these buildings – many of which are part of a community’s heritage and identity. Specifically, my legislation would create Article XVII-J in the Tax Reform Code of 1971, which would establish three types of tax incentive programs for the rehabilitation or reconstruction of certifiable factory or mill complexes. The first program provides a tax credit of 25% for the rehabilitation and reconstruction costs incurred by the owner. The second program is a business tax credit, which provides a tax credit equal to 100% of the total amount of Pennsylvania salaries and wages paid to qualified full-time employees, which has a maximum allowable credit of $7,000 per qualified employee. The final program is an interest income tax program, which permits a taxpayer to receive a tax credit of 15%, up to $12,000 per taxable year, of the tax liability for interest earned and paid on loans made to eligible businesses for expenditures within the building. The taxpayer is also allowed a tax credit of 100%, up to $25,000 per taxable year, of the qualified liability of the interest earned on loans made for the purpose of substantial rehabilitation. Repurposing an old factory or mill for retail, office or arts space, or transforming them into dwellings, encourages economic development and improves the quality of life of a community. Please join me in co-sponsoring this legislation. |
Introduced as HB653