PRINTER'S NO. 86
No. 65 Session of 2007
INTRODUCED BY WOZNIAK, TARTAGLIONE, FONTANA, RAFFERTY, D. WHITE,
LOGAN, BROWNE AND STACK, FEBRUARY 8, 2007
REFERRED TO FINANCE, FEBRUARY 8, 2007
AN ACT
1 Amending the act of October 6, 1998 (P.L.705, No.92), entitled,
2 as amended, "An act providing for the creation of keystone
3 opportunity zones and keystone opportunity expansion zones to
4 foster economic opportunities in this Commonwealth, to
5 facilitate economic development, stimulate industrial,
6 commercial and residential improvements and prevent physical
7 and infrastructure deterioration of geographic areas within
8 this Commonwealth; authorizing expenditures; providing tax
9 exemptions, tax deductions, tax abatements and tax credits;
10 creating additional obligations of the Commonwealth and local
11 governmental units; and prescribing powers and duties of
12 certain State and local departments, agencies and officials,"
13 further providing for keystone opportunity zones, for
14 keystone opportunity expansion zones, for application, for
15 tax credit determination and for expiration of act.
16 The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18 Section 1. Section 301(b) and (e) of the act of October 6,
19 1998 (P.L.705, No.92), known as the Keystone Opportunity Zone,
20 Keystone Opportunity Expansion Zone and Keystone Opportunity
21 Improvement Zone Act, amended December 20, 2000 (P.L.841,
22 No.119), are amended to read:
23 Section 301. Keystone opportunity zones.
24 * * *
1 (b) Zone authorization.--The department shall authorize not
2 more than 12 keystone opportunity zones in this Commonwealth.
3 Persons and businesses within an authorized keystone opportunity
4 zone that are qualified under this act shall be entitled to all
5 tax exemptions, deductions, abatements or credits set forth in
6 this act for a period not to exceed 15 years beginning January
7 1, 1999, or at the time the qualified person or business begins
8 active conduct of its trade or business, whichever occurs later,
9 and ending on or before December 31, [2013] 2028.
10 * * *
11 (e) Authorization to extend the duration of a keystone
12 opportunity zone or subzone.--
13 (1) A subzone of a keystone opportunity zone may request
14 to extend its designation as a subzone for a period of three
15 years. A subzone that is part of a keystone opportunity zone
16 that will expire on December 31, 2008, may extend its
17 designation as a subzone to December 31, 2010, or to December
18 31, 2013. The request to extend a subzone designation shall
19 be made on a subzone-by-subzone basis. A qualified political
20 subdivision having an approved subzone within its
21 jurisdiction and seeking to extend the subzone designation
22 shall pass the required ordinances, resolutions or other
23 required action of the qualified political subdivision for
24 the necessary exemptions, deductions, abatements or credits
25 pursuant to this act for the period beginning after December
26 31, 2008, or December 31, 2010, as the case may be, and shall
27 submit copies of the ordinance, resolution or other action to
28 the department by June 30, 2001. The department may grant the
29 request to extend provided all the proper binding ordinances,
30 resolutions or other governing documents are passed by all
20070S0065B0086 - 2 -
1 qualified political subdivisions within the subzone extending
2 the necessary exemptions, deductions, abatements and credits
3 to the entire subzone to December 31, 2010, or December 31,
4 2013. The department shall approve or deny the request for
5 extension of duration of a subzone by July 31, 2001, and
6 shall provide written notice, irrespective of whether
7 approved or denied, to each qualified political subdivision,
8 resident and qualified business affected. Upon approval of a
9 request for extension of duration of a subzone, the
10 exemptions, deductions, abatements or credits shall be
11 binding upon the qualified political subdivision as provided
12 in subsection (d).
13 (2) In addition to the authority to extend the duration
14 of a subzone of a keystone opportunity zone under paragraph
15 (1), a subzone may request to extend its designation as a
16 subzone for a period to end December 31, 2028. The request to
17 extend a subzone designation shall be made on a subzone-to-
18 subzone basis. A qualified political subdivision having an
19 approved subzone within its jurisdiction and seeking to
20 extend the subzone designation shall pass the required
21 ordinances, resolutions or other required action of the
22 qualified political subdivision for the necessary exemptions,
23 deductions, abatements or credits pursuant to this act for
24 the period to end December 31, 2028, and shall submit copies
25 of the ordinance, resolution or other action to the
26 department by June 30, 2007. The department may grant the
27 request to extend provided all the proper binding ordinances,
28 resolutions or other governing documents are passed by all
29 qualified political subdivisions within the subzone extending
30 the necessary exemptions, deductions, abatements and credits
20070S0065B0086 - 3 -
1 to the entire subzone to December 31, 2028. The ordinance,
2 resolution or other governing document must specify that no
3 entity shall have more than 15 years of tax relief under this
4 act. The department shall approve or deny the request for
5 extension of duration of a subzone within 30 days of receipt
6 of the request and shall provide notice, irrespective of
7 whether approved or denied, to each qualified political
8 subdivision, resident and qualified business affected. Upon
9 approval of a request for extension of duration of a subzone,
10 the exemptions, deductions, abatements or credits shall be
11 binding upon the qualified political subdivision as provided
12 in subsection (d).
13 * * *
14 Section 2. Section 301.1(b) of the act, added December 20,
15 2000 (P.L.841, No.119), is amended and the section is amended by
16 adding a subsection to read:
17 Section 301.1. Keystone opportunity expansion zones.
18 * * *
19 (b) Authorization.--The department shall authorize not more
20 than 12 keystone opportunity expansion zones in this
21 Commonwealth. Persons and businesses within an authorized
22 keystone opportunity expansion zone that are qualified under
23 this act shall be entitled to all tax exemptions, deductions,
24 abatements or credits set forth in this act for a period of ten
25 or 13 years beginning January 1, 2001, or at the time the
26 qualified person or business begins active conduct of its trade
27 or business, whichever occurs later, and ending on December 31,
28 2010, [or] December 31, 2013, or December 31, 2028.
29 * * *
30 (d.1) Authorization to extend duration of keystone
20070S0065B0086 - 4 -
1 opportunity expansion zone.--In addition to the authority to
2 extend the duration of a subzone of a keystone opportunity zone
3 under this act, an expansion subzone of a keystone opportunity
4 zone may request to extend its designation as an expansion
5 subzone for a period to end December 31, 2028. The request to
6 extend an expansion subzone designation shall be made on an
7 expansion subzone-to-expansion subzone basis. A qualified
8 political subdivision having an approved expansion subzone
9 within its jurisdiction and seeking to extend the expansion
10 subzone designation shall pass the required ordinances,
11 resolutions or other required action of the qualified political
12 subdivision for the necessary exemptions, deductions, abatements
13 or credits pursuant to this act for the period to end December
14 31, 2028, and shall submit copies of the ordinance, resolution
15 or other action to the department by June 30, 2007. The
16 department may grant the request to extend provided all the
17 proper binding ordinances, resolutions or other governing
18 documents are passed by all qualified political subdivisions
19 within the expansion subzone extending the necessary exemptions,
20 deductions, abatements and credits to the entire expansion
21 subzone to December 31, 2028. The ordinance, resolution or other
22 governing document must specify that no entity shall have more
23 than 15 years of tax relief under this act. The department shall
24 approve or deny the request for extension of duration of an
25 expansion subzone within 30 days of receipt of the request and
26 shall provide notice, irrespective of whether approved or
27 denied, to each qualified political subdivision, resident and
28 qualified business affected. Upon approval of a request for
29 extension of duration of an expansion subzone, the exemptions,
30 deductions, abatements or credits shall be binding upon the
20070S0065B0086 - 5 -
1 qualified political subdivision as provided in subsection (d).
2 * * *
3 Section 3. Sections 302(a), 518(e), 519(e) and 1309 of the
4 act, amended December 9, 2002 (P.L.1727, No.217), are amended to
5 read:
6 Section 302. Application.
7 (a) Initial application.--One or more political
8 subdivisions, or a designee of one or more political
9 subdivisions, may apply to the department to designate
10 deteriorated property within the political subdivision or
11 portions thereof a subzone or expansion subzone. The application
12 shall contain the following:
13 (1) The geographic area of the proposed keystone
14 opportunity zone or proposed keystone opportunity expansion
15 zone. The geographic area shall be located within the
16 boundaries of the participating political subdivision and
17 shall not contain more than 5,000 acres in the case of a
18 keystone opportunity zone or 1,500 acres in the case of a
19 keystone opportunity expansion zone.
20 (2) An opportunity plan that shall include the
21 following:
22 (i) A detailed map of the proposed keystone
23 opportunity zone or proposed keystone opportunity
24 expansion zone, including geographic boundaries, total
25 area and present use and conditions of the land and
26 structures of the proposed keystone opportunity zone or
27 proposed keystone opportunity expansion zone.
28 (ii) Evidence of support from and participation of
29 local government, school districts and other educational
30 institutions, business groups, community organizations
20070S0065B0086 - 6 -
1 and the public.
2 (iii) A proposal to increase economic opportunity,
3 reduce crime, improve education, facilitate
4 infrastructure improvement, reduce the local regulating
5 burden and identify potential jobs and job training
6 opportunities and which states whether or not the zone is
7 located in an area which has tax revenue dedicated to the
8 payment of debt.
9 (iv) A description of the current social, economic
10 and demographic characteristics of the proposed keystone
11 opportunity zone or proposed keystone opportunity
12 expansion zone and anticipated improvements in education,
13 health, human services, public safety and employment that
14 will result from keystone opportunity zone or keystone
15 opportunity expansion zone designation.
16 (v) A description of anticipated activity in the
17 proposed keystone opportunity zone or proposed keystone
18 opportunity expansion zone, including, but not limited
19 to, industrial use, industrial site reuse, commercial or
20 retail use and residential use.
21 (vi) Evidence of potential private and public
22 investment in the proposed keystone opportunity zone or
23 proposed keystone opportunity expansion zone.
24 (vii) The role of the proposed keystone opportunity
25 zone or proposed keystone opportunity expansion zone in
26 regional economic and community development.
27 (viii) Plans to utilize existing resources for the
28 administration of the proposed keystone opportunity zone
29 or proposed keystone opportunity expansion zone.
30 (ix) Any other information deemed appropriate by the
20070S0065B0086 - 7 -
1 department.
2 (3) A report on youth at risk to include issues relating
3 to health, welfare and education.
4 (4) The duration of the proposed subzones or proposed
5 expansion subzones. [The duration of a subzone may not exceed
6 15 years. The duration of an expansion subzone may not exceed
7 13 years.]
8 (5) A formal, binding ordinance or resolution passed by
9 every political subdivision in which the proposed subzone or
10 proposed expansion subzone is located that specifically
11 provides for all local tax exemptions, deductions, abatements
12 or credits for persons and businesses set forth in this act.
13 (6) Evidence that the proposed keystone opportunity zone
14 or proposed keystone opportunity expansion zone meets the
15 required criteria under section 304.
16 * * *
17 Section 518. Keystone opportunity zone job tax credit, keystone
18 opportunity improvement zone job tax credit or
19 keystone opportunity expansion zone job tax
20 credit.
21 * * *
22 (e) Credit determinations.--The keystone opportunity zone
23 job tax credit, keystone opportunity improvement zone job tax
24 credit or keystone opportunity expansion zone job tax credit
25 shall be determined by multiplying the monthly average of all
26 full-time jobs by the allowance. The allowance for purposes of
27 the keystone opportunity zone job tax credit, keystone
28 opportunity improvement zone job tax credit or keystone
29 opportunity expansion zone job tax credit for taxable years
30 beginning within the dates set forth shall be as follows:
20070S0065B0086 - 8 -
1 January 1, 2001, to
2 December 31, 2001 $500 per job
3 January 1, 2002, to
4 December 31, 2002 $750 per job
5 January 1, 2003, to
6 December 31, 2003 $1,000 per job
7 January 1, 2004, to
8 December 31, 2004 $1,250 per job
9 January 1, 2005, to
10 December 31, 2005 $1,250 per job
11 January 1, 2006, to
12 December 31, 2006 $1,250 per job
13 January 1, 2007, to
14 December 31, 2007 $1,250 per job
15 January 1, 2008, to
16 December 31, 2008 $1,250 per job
17 January 1, 2009, to
18 December 31, 2009 $1,250 per job
19 January 1, 2010, to
20 December 31, 2010 $1,250 per job
21 January 1, 2011, to
22 December 31, 2011 $1,250 per job
23 January 1, 2012, to
24 December 31, 2012 $1,250 per job
25 January 1, 2013, to
26 December 31, 2013 $1,250 per job
27 January 1, 2014, to
28 December 31, 2014 $1,250 per job
29 January 1, 2015, to
30 December 31, 2015 $1,250 per job
20070S0065B0086 - 9 -
1 January 1, 2016, to
2 December 31, 2016 $1,250 per job
3 January 1, 2017, to
4 December 31, 2017 $1,250 per job
5 January 1, 2018, to
6 December 31, 2018 $1,250 per job
7 January 1, 2019, to
8 December 31, 2019 $1,250 per job
9 January 1, 2020, to
10 December 31, 2020 $1,250 per job
11 January 1, 2021, to
12 December 31, 2021 $1,250 per job
13 January 1, 2022, to
14 December 31, 2022 $1,250 per job
15 January 1, 2023, to
16 December 31, 2023 $1,250 per job
17 January 1, 2024, to
18 December 31, 2024 $1,250 per job
19 January 1, 2025, to
20 December 31, 2025 $1,250 per job
21 January 1, 2026, to
22 December 31, 2026 $1,250 per job
23 January 1, 2027, to
24 December 31, 2027 $1,250 per job
25 January 1, 2028, to
26 December 31, 2028 $1,250 per job
27 * * *
28 Section 519. Keystone opportunity zone job creation tax credit,
29 keystone opportunity improvement zone
30 job creation tax credit or keystone opportunity
20070S0065B0086 - 10 -
1 expansion zone job creation tax credit.
2 * * *
3 (e) Credit determinations.--The keystone opportunity zone
4 job creation tax credit, keystone opportunity improvement zone
5 job creation tax credit or keystone opportunity expansion zone
6 job creation tax credit shall be determined by multiplying the
7 monthly average of all full-time jobs by the allowance. The
8 allowance for purposes of the keystone opportunity zone job
9 creation tax credit, keystone opportunity improvement zone job
10 creation tax credit or keystone opportunity expansion zone
11 creation job tax credit for taxable years beginning within the
12 dates set forth shall be as follows:
13 January 1, 2001, to
14 December 31, 2001 $500 per job
15 January 1, 2002, to
16 December 31, 2002 $750 per job
17 January 1, 2003, to
18 December 31, 2003 $1,000 per job
19 January 1, 2004, to
20 December 31, 2004 $1,250 per job
21 January 1, 2005, to
22 December 31, 2005 $1,250 per job
23 January 1, 2006, to
24 December 31, 2006 $1,250 per job
25 January 1, 2007, to
26 December 31, 2007 $1,250 per job
27 January 1, 2008, to
28 December 31, 2008 $1,250 per job
29 January 1, 2009, to
30 December 31, 2009 $1,250 per job
20070S0065B0086 - 11 -
1 January 1, 2010, to
2 December 31, 2010 $1,250 per job
3 January 1, 2011, to
4 December 31, 2011 $1,250 per job
5 January 1, 2012, to
6 December 31, 2012 $1,250 per job
7 January 1, 2013, to
8 December 31, 2013 $1,250 per job
9 January 1, 2014, to
10 December 31, 2014 $1,250 per job
11 January 1, 2015, to
12 December 31, 2015 $1,250 per job
13 January 1, 2016, to
14 December 31, 2016 $1,250 per job
15 January 1, 2017, to
16 December 31, 2017 $1,250 per job
17 January 1, 2018, to
18 December 31, 2018 $1,250 per job
19 January 1, 2019, to
20 December 31, 2019 $1,250 per job
21 January 1, 2020, to
22 December 31, 2020 $1,250 per job
23 January 1, 2021, to
24 December 31, 2021 $1,250 per job
25 January 1, 2022, to
26 December 31, 2022 $1,250 per job
27 January 1, 2023, to
28 December 31, 2023 $1,250 per job
29 January 1, 2024, to
30 December 31, 2024 $1,250 per job
20070S0065B0086 - 12 -
1 January 1, 2025, to
2 December 31, 2025 $1,250 per job
3 January 1, 2026, to
4 December 31, 2026 $1,250 per job
5 January 1, 2027, to
6 December 31, 2027 $1,250 per job
7 January 1, 2028, to
8 December 31, 2028 $1,250 per job
9 * * *
10 Section 1309. Expiration.
11 This act and all benefits associated with this act shall
12 terminate December 31, [2018] 2028.
13 Section 4. This act shall take effect immediately.
L14L72DMS/20070S0065B0086 - 13 -