PRINTER'S NO. 103
No. 106 Session of 1997
INTRODUCED BY HOLL, JANUARY 21, 1997
REFERRED TO COMMUNITY AND ECONOMIC DEVELOPMENT, JANUARY 21, 1997
AN ACT
1 Providing for the establishment, operation and administration of
2 the Enterprise Zone Economic Revitalization Program, for
3 enterprise planning zones, for enterprise development zones
4 and for enterprise investment zones; authorizing the
5 reimbursement of municipal corporations for a portion of
6 taxes exempted by the municipal corporations on improvements
7 to deteriorated property located within the enterprise zones;
8 providing that reimbursement payments received by municipal
9 corporations be used for community development projects and
10 neighborhood services within enterprise zones; providing
11 special net loss deduction provisions for certain
12 corporations located in enterprise zones; increasing the set-
13 aside amount for private companies which make qualified
14 investments in enterprise zones; imposing additional powers
15 and duties on the Department of Community and Economic
16 Development; and making repeals.
17 TABLE OF CONTENTS
18 Section 1. Short title.
19 Section 2. Declaration of policy.
20 Section 3. Definitions.
21 Section 4. Establishment of program and identification of goals
22 and objectives.
23 Section 5. Enterprise zone designation.
24 Section 6. Application procedure.
1 Section 7. Grants and other assistance to enterprise zones.
2 Section 8. Reimbursement of tax exemptions.
3 Section 9. Special net loss deduction provisions.
4 Section 10. Guidelines and regulations.
5 Section 11. Special provisions.
6 Section 12. Reporting requirements.
7 Section 13. Neighborhood assistance tax credit.
8 Section 14. Repeals.
9 Section 15. Expiration.
10 Section 16. Effective date.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Short title.
14 This act shall be known and may be cited as the Enterprise
15 Zone Economic Revitalization Act.
16 Section 2. Declaration of policy.
17 It is the purpose of this act to provide for the
18 establishment of enterprise zones in order to stimulate
19 entrepreneurship, particularly among zone residents, the
20 creation of new jobs, particularly for disadvantaged workers and
21 long-term unemployed individuals and to promote revitalization
22 of economically distressed urban and rural areas primarily by
23 providing or encouraging:
24 (1) Targeted State economic development assistance and
25 support for local merchants, service providers and
26 manufacturers and for the expansion of entrepreneurial
27 activity, jobs and job opportunities in enterprise zones.
28 (2) Tax incentives to foster equity ownership by local
29 residents, increase the availability of local goods and
30 services, employ disadvantaged individuals and stimulate
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1 meaningful entrepreneurial activity in the area.
2 (3) Increased involvement in enterprise zones by
3 private, local and neighborhood organizations for the purpose
4 of improving local services and increasing the economic stake
5 of enterprise zone residents in their own community and its
6 development.
7 Section 3. Definitions.
8 The following words and phrases when used in this act shall
9 have the meanings given to them in this section unless the
10 context clearly indicates otherwise:
11 "Community development project." A project undertaken for
12 improvement of the physical environment of enterprise zones,
13 including, but not limited to, a project which will enhance
14 safety, sanitation, transportation, sewage disposal, water
15 quality, recreational resources, aesthetic quality or security.
16 "Department." The Department of Community and Economic
17 Development of the Commonwealth.
18 "Distressed community." A municipal corporation designated
19 as distressed by the Department of Community Affairs.
20 "Enterprise zone." A specific area with identifiable
21 boundaries located in one or more distressed communities which
22 has been designated as an enterprise zone by the Secretary of
23 Community Affairs.
24 "Metropolitan statistical area." Any county in which there
25 is a city with a population of at least 50,000 or an urbanized
26 area of at least 50,000 with a total metropolitan population of
27 at least 100,000.
28 "Municipal corporation." Any city, borough, incorporated
29 town, township or home rule municipality which is not a county.
30 "Neighborhood service." A service undertaken by a municipal
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1 corporation or a public agency or not-for-profit organization
2 designated by the governing body of the municipal corporation to
3 enhance safety, security, health, welfare or employability of
4 persons residing or working in enterprise zones.
5 "Population." The number of persons in each municipal
6 corporation as finally determined by the United States Census
7 Bureau of the United States Department of Commerce in its most
8 recent population estimate report.
9 Section 4. Establishment of program and identification of goals
10 and objectives.
11 (a) Establishment.--There is hereby established, under the
12 direction of the department, a program to be known as the
13 Enterprise Zone Economic Revitalization Program for the purpose
14 of providing tax relief, special grants and other assistance to
15 local manufacturers, service providers and merchants located in
16 distressed communities that have been designated as enterprise
17 zones in accordance with the criteria set forth in this act.
18 (b) Goals and objectives.--The Enterprise Zone Economic
19 Revitalization Program is intended to create a positive economic
20 environment that will encourage entrepreneurship, stimulate
21 business development, create jobs, increase employment
22 opportunities for disadvantaged citizens and displaced workers
23 and enhance the quality of life in the enterprise zone and in
24 the municipal corporation generally through improved housing,
25 community facilities and amenities. The program shall have the
26 following objectives:
27 (1) Provide for a system of targeted economic assistance
28 and support to enterprise zones and a systematic process
29 whereby enterprise zones are helped to become economically
30 viable through participation in the Enterprise Zone Economic
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1 Revitalization Program.
2 (2) Improve the economic climate for jobs, increase the
3 number of jobs and job opportunities and improve economic
4 conditions in enterprise zones, particularly for
5 disadvantaged citizens and displaced workers.
6 (3) Encourage working partnerships in enterprise zones
7 composed of neighborhood and community leaders,
8 representatives of the financial community, public officials,
9 businesses, representatives of the education community,
10 private citizens and others.
11 (4) Encourage the formation and success of enterprise
12 zone businesses, primarily manufacturers, service providers
13 and merchants, through tax incentives and through targeted
14 enterprise zone financial assistance to combat crime, improve
15 housing, demolish derelict buildings, treat drug addicts and
16 provide other measures that will improve the economic
17 environment in neighborhoods where businesses are being
18 encouraged to locate.
19 (5) Increase equity capital available to businesses
20 locating, starting or expanding in enterprise zones.
21 (6) Provide worker training programs for displaced
22 workers which will make them employable in local businesses
23 and industries in the enterprise zone.
24 (7) Ensure the opportunity for distressed rural areas to
25 participate fully in the Enterprise Zone Economic
26 Revitalization Program.
27 (8) Provide for housing needs within the enterprise zone
28 and for crime and fire protection and other public services.
29 (9) Provide new public facilities and improvements to
30 existing facilities that will meet the needs of businesses
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1 and industries in the enterprise zone.
2 (10) Provide sites for industry location and expansion
3 in the enterprise zone.
4 Section 5. Enterprise zone designation.
5 (a) Designation of enterprise planning zones.--Eligible
6 municipal corporations may be designated by the department as
7 enterprise planning zones when the department determines that
8 the municipal corporation shows good potential for achieving
9 substantial private sector and local commitment to the
10 enterprise zone, examples of such commitment being identified
11 under section 6(d) and (e), and when the municipal corporation
12 has demonstrated that it has the potential for achieving a
13 significant number of program objectives set forth in section 4.
14 Designation as an enterprise planning zone is intended to
15 provide the municipal corporation with a period of time during
16 which the requested private and local commitments to the
17 enterprise zone can be obtained and to demonstrate that a
18 significant number of objectives would be achieved through the
19 granting of status under subsection (b). Following designation
20 as an enterprise planning zone, a municipal corporation shall be
21 eligible for the benefits accruing to enterprise planning zones
22 under section 7. In no case shall a municipal corporation retain
23 enterprise planning zone status for more than two years.
24 (b) Designation of enterprise development zones.--Eligible
25 municipal corporations may be designated by the department as
26 enterprise development zones when the department determines that
27 the municipal corporation has demonstrated substantial private
28 sector and local commitment to the enterprise zone, examples of
29 such commitment being identified under section 6(d) and (e), and
30 when the municipal corporation has demonstrated that a
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1 significant number of program objectives set forth in section 4
2 would be achieved through designation as an enterprise
3 development zone. Following designation as an enterprise
4 development zone, a municipal corporation shall be eligible for
5 the benefits accruing to enterprise development zones under
6 section 7. In no case shall a municipal corporation retain
7 enterprise development zone designation and receive benefits
8 under section 7 for more than five years. The department shall
9 monitor the performance of each enterprise zone for the purpose
10 of measuring and evaluating progress made in achieving program
11 objectives.
12 (c) Designation of enterprise investment zone.--Municipal
13 corporations designated as enterprise development zones in
14 accordance with subsection (b) that have demonstrated a
15 continuing substantial private sector and local commitment to
16 the enterprise zone, which have met or demonstrated substantial
17 progress in meeting the program objectives set forth in section
18 4, as determined through performance monitoring conducted by the
19 department and which have participated for at least three years
20 as an enterprise development zone shall be eligible for
21 designation as an enterprise investment zone. Following
22 designation as an enterprise investment zone, a municipal
23 corporation shall be eligible for the benefits accruing to
24 enterprise investment zones under section 7. In no case shall a
25 municipal corporation retain enterprise investment zone status
26 for more than three years.
27 (d) Designation criteria.--To be eligible for designation as
28 an enterprise zone, a municipal corporation shall be classified
29 as a distressed community. In determining whether a municipal
30 corporation should be classified as distressed, the department
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1 may utilize provisions under the act of July 2, 1984 (P.L.520,
2 No.105), known as the Business Infrastructure Development Act
3 and the act of July 10, 1987 (P.L.246, No.47), known as the
4 Municipalities Financial Recovery Act.
5 (e) Emergency enterprise zone designation.--The Secretary of
6 Community and Economic Development may waive certain enterprise
7 zone designation criteria in order to make an emergency
8 enterprise zone designation in areas effected by disaster,
9 including, but not limited to, fire, flood, tornado and other
10 natural or manmade destruction.
11 Section 6. Application procedure.
12 (a) Eligibility.--Any municipal corporation that meets the
13 criteria set forth in section 5 shall be eligible to apply for
14 enterprise zone designation as provided in this act, using
15 application materials prepared and issued by the department.
16 (b) Joint applications.--In the event that a proposed
17 enterprise zone affects two or more municipal corporations, the
18 submission of a multijurisdictional application shall be
19 permitted if binding agreements and clear lines of authority are
20 established between or among the municipal corporations
21 participating in the joint application for enterprise zone
22 designation.
23 (c) Application contents.--The application for an enterprise
24 zone designation submitted by the municipal corporation on the
25 form prepared and issued by the department shall include, but
26 not be limited to, the following information:
27 (1) A complete physical description of the area to be
28 included in the proposed enterprise zone.
29 (2) Evidence of the area's need for such a designation,
30 including documentation of compliance with distressed
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1 communities criteria.
2 (3) Potential for revitalization, including a
3 description of the proposed enterprise zone's assets which
4 may serve to attract or assist the growth of business or
5 industry, as well as reasons indicating the area's
6 difficulties in attracting and retaining businesses and
7 residents.
8 (4) A minimum three-year activity plan detailing the
9 applicant's goals and strategy for the development and
10 revitalization of the proposed enterprise zone, including
11 achievable and measurable objectives.
12 (5) A statement of organization, which shall include
13 direction by the municipal corporation or multijurisdictional
14 applicant, with an advisory committee to be composed of
15 participants from the private and public sectors who, at a
16 minimum, have a stake in the development of the proposed
17 enterprise zone and have available resources to commit.
18 (d) Private sector commitments.--An application for
19 enterprise zone designation shall include written commitments
20 from individuals, businesses, banks and other private sector
21 institutions and organizations that will commit private sector
22 resources to the enterprise zone. Commitments may be contingent
23 upon specific State and local contributions, but the terms shall
24 be clearly and specifically identified. Examples of appropriate
25 private sector commitments include the following:
26 (1) Specific, direct financial contributions by
27 businesses and individuals to the economic development and
28 community improvement program identified in the application.
29 (2) Commitments by business and industry to locate,
30 expand or start up operations within the proposed zone,
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1 especially local manufacturers, service providers and
2 merchants.
3 (3) Commitments to hire underskilled, inexperienced,
4 disadvantaged individuals or displaced workers living in the
5 enterprise zone.
6 (4) Commitments by other businesses or private sector
7 organizations to help existing or new enterprise zone
8 businesses and industries create or preserve jobs.
9 (5) Commitments by banks and other private financial
10 institutions to reduce the cost or increase the availability
11 and accessibility of investment capital for either businesses
12 or individuals or for neighborhood improvement in the
13 enterprise zone. Examples of specific commitments include the
14 following:
15 (i) Lower interest rates or longer terms for loans.
16 (ii) Relaxing qualifications for loans.
17 (iii) Provision of equity capital.
18 (iv) Provision of special counseling and assistance
19 for loan applicants.
20 (6) Commitments by businesses and individuals already
21 located in the area to invest in improvements they would not
22 otherwise undertake.
23 (7) Commitments by businesses or private sector
24 organizations to introduce new or operate existing community
25 services.
26 (e) Local public sector commitments.--An application for
27 enterprise zone designation shall include a resolution adopted
28 by the municipal corporation committing the municipal
29 corporation to certain contributions and activities over the
30 period during which enterprise zone designation would be
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1 authorized. Examples of appropriate local public sector
2 commitments include the following:
3 (1) Local tax relief and forgiveness of tax liens.
4 (2) Regulatory relief, including zoning changes or
5 variances, exemptions of unnecessary building code
6 requirements and streamlined permitting.
7 (3) Enhanced municipal services, such as improved police
8 and fire protection and the provision of special public
9 transit routes or reduced fares.
10 (4) Improvements to community facilities, such as
11 capital improvements for water and sewer facilities, road
12 repair and park improvements.
13 (5) Improvements to housing, such as low-interest loans
14 for rehabilitation and the transfer of abandoned housing to
15 individuals or community groups.
16 (6) Business and industrial development services,
17 including the following:
18 (i) low-interest loans for business;
19 (ii) use of surplus school buildings or other
20 underutilized publicly owned facilities as small business
21 incubators;
22 (iii) provision of publicly owned land for
23 development purposes;
24 (iv) creation of special one-stop permitting and
25 problem resolution centers or ombudsmen; and
26 (v) promotion and marketing services.
27 Section 7. Grants and other assistance to enterprise zones.
28 (a) Grants.--Designated enterprise planning zones,
29 enterprise development zones and enterprise investment zones
30 shall be eligible to receive from the department grant awards,
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1 the amount of which shall be derived from any annual
2 appropriation made by the General Assembly for grants authorized
3 by the act of May 20, 1949 (P.L.1633, No.493), known as the
4 Housing and Redevelopment Assistance Law, in areas designated as
5 enterprise zones. Grant awards for any one enterprise planning
6 zone shall not exceed $50,000 annually, grant awards for any one
7 enterprise development zone shall not exceed $250,000 annually
8 and grant awards for any one enterprise investment zone shall
9 not exceed $250,000 over the entire period the area is
10 designated an enterprise investment zone. Grant awards to
11 enterprise planning zones are intended to assist in the
12 formulation and refinement of economic development plans and
13 strategies that will enable the recipient to successfully
14 compete for designation as an enterprise development zone. Grant
15 awards to enterprise development and enterprise investment zones
16 are intended to complement and leverage other local and private
17 financial commitments to the enterprise zone and may be used to
18 combat crime, improve housing, demolish derelict buildings,
19 treat drug addicts and provide other measures that will improve
20 the economic environment in neighborhoods where businesses are
21 being encouraged to locate.
22 (b) Other assistance.--Enterprise zones shall receive
23 priority consideration for State assistance to be provided to
24 projects under the State Customized Job Training Program and
25 Employment and Community Conservation Program and various State
26 economic and community development programs, including, but not
27 limited to, the Housing and Redevelopment Assistance Program,
28 the Community Development Block Grant Program, the Community
29 Economic Recovery Program, the Industrial Communities Site
30 Development Program, the Industrial Communities Action Program,
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1 the Machinery and Equipment Loan Fund Program, the Community
2 Facilities Program, the Site Development Program and the
3 Pennsylvania Economic Development Finance Authority Program.
4 Enterprise zones shall also be eligible for special benefits to
5 be provided under the following State economic, community
6 development and other programs:
7 (1) Business Infrastructure Development Program.--
8 Projects in designated enterprise development zones and
9 enterprise planning zones shall be eligible for
10 infrastructure grants of up to $1,500,000. Projects in
11 designated enterprise investment zones shall be eligible for
12 infrastructure grants of up to $750,000 or 50% of the project
13 cost, whichever is less.
14 (2) Pennsylvania Industrial Development Authority
15 Program.--Projects in designated enterprise development zones
16 that are approved for Pennsylvania Industrial Development
17 Authority (PIDA) financing shall receive the lowest interest
18 rate extended to PIDA borrowers and shall be eligible to
19 receive an additional 10% loan capital. Projects in
20 designated enterprise investment zones that are approved for
21 financing shall be eligible to receive the lowest interest
22 rate extended to PIDA borrowers.
23 (3) Pennsylvania Minority Business Development Authority
24 Program.-- Minority business owners in designated enterprise
25 development zones shall be eligible for low interest loans of
26 up to $200,000 for machinery, equipment, inventory and
27 working capital. Minority business owners in designated
28 enterprise investment zones shall be eligible for loans of up
29 to $100,000 for machinery, equipment, inventory and working
30 capital.
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1 (4) Neighborhood Assistance Program.--Projects in
2 designated enterprise development zones that are approved for
3 the 50% tax credit under the act of November 29, 1967
4 (P.L.636, No.292), known as the Neighborhood Assistance Act,
5 shall be eligible for an additional 20% tax credit. Projects
6 in designated enterprise investment zones that are approved
7 for the 50% tax credit under the Neighborhood Assistance Act
8 shall be eligible for an additional 10% tax credit.
9 Section 8. Reimbursement of tax exemptions.
10 (a) Program establishment.--The department is authorized to
11 establish and administer a program for the reimbursement to
12 municipal corporations of a portion of the amount of exemptions
13 from real property taxes levied on improvements made to
14 deteriorated property when exemptions have been provided by
15 municipal governing bodies, including the governing bodies of
16 home rule municipalities which are not counties, pursuant to the
17 act of December 1, 1977 (P.L.237, No.76), known as the Local
18 Economic Revitalization Tax Assistance Act. Reimbursements may
19 be made available whenever the deteriorated properties to which
20 improvements have been made, and for which exemptions have been
21 granted by municipal governing bodies, are located within
22 portions of deteriorated areas designated by the department as
23 an enterprise planning zone or an enterprise development zone.
24 (b) Application.--In order to receive reimbursement of tax
25 exemptions, the municipal corporation shall annually file an
26 application with the department in a form and manner specified
27 by the department. The application shall:
28 (1) Identify areas of the municipal corporation which
29 have been designated as deteriorated areas pursuant to the
30 Local Economic Revitalization Tax Assistance Act.
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1 (2) Identify the portions of deteriorated areas which
2 have also been designated as an enterprise planning zone or
3 an enterprise development zone.
4 (3) Report the market value, assessed value, millage
5 rate and the value of real estate tax exemptions granted by
6 the municipal governing body on improvements to deteriorated
7 property located within deteriorated areas which have also
8 been designated as enterprise zones during the immediately
9 prior calendar year.
10 (4) Request reimbursement of all or a portion of the
11 value of such tax exemptions.
12 (5) Provide a plan for the utilization of reimbursements
13 requested by the municipal corporation to provide for
14 community development projects or neighborhood services in
15 the enterprise zone. The plan shall document the needs of the
16 enterprise zone and demonstrate how the proposed projects or
17 services meet those needs, with an emphasis on long-term
18 physical improvements and consistency with the goals and
19 objectives of the enterprise zone strategy.
20 (6) Provide other information requested by the
21 department which may be necessary to evaluate the application
22 for reimbursement.
23 (c) Review and approval.--The department may review and
24 approve or disapprove, in whole or in part, applications for the
25 reimbursement of tax exemptions based upon an evaluation of the
26 plan of the municipal corporation for community development
27 projects and neighborhood services to be provided in the
28 enterprise zone.
29 (d) Amount of payment.--Each municipal corporation for which
30 tax exemption reimbursements are approved by the department
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1 shall receive a payment equal to a portion of the amount of
2 total funding available for reimbursement payments for that
3 year, determined by dividing the amount of approved eligible tax
4 exemptions on improvements to deteriorated property within the
5 enterprise zone located within each municipal corporation by the
6 amount of approved eligible tax exemptions on improvements to
7 deteriorated property within all enterprise zones for which
8 reimbursements have been approved for that year. Reimbursements
9 of tax exemptions granted in an enterprise zone shall not exceed
10 the lesser of actual approved eligible tax exemptions granted in
11 the enterprise zone in that year, the amount to be expended on
12 community development projects and neighborhood services in the
13 enterprise zone or 10% of the total funds available for
14 reimbursement payments in that year.
15 (e) Administration.--The department is authorized to adopt
16 any forms, program manuals, procedures, statements of policy,
17 rules and regulations as may be necessary to implement the
18 provisions of this section. The department shall report annually
19 to the General Assembly on the reimbursements awarded under this
20 act.
21 (f) Funding.--Funds for the payment of tax exemption
22 reimbursements pursuant to this section shall be made available
23 from the appropriation to the department for housing and
24 redevelopment assistance.
25 Section 9. Special net loss deduction provisions.
26 (a) Certification by department.--The department shall
27 certify to the Department of Revenue a list of the corporations
28 which qualify for the special net loss deduction provisions
29 provided under subsection (b). In order to qualify for this
30 deduction, the corporation must satisfy each of the following
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1 requirements:
2 (1) The corporation shall have no more than 100
3 employees employed within the enterprise zone.
4 (2) The corporation's business within the enterprise
5 zone shall substantially involve manufacturing, the provision
6 of services or retail sales.
7 (3) If the corporation relocates to the enterprise zone
8 from another location within this Commonwealth and the
9 relocation occurs after the area was designated as an
10 enterprise zone, the corporation must be in compliance with
11 the requirements of section 11(c).
12 (b) Special deduction provisions.--Businesses located in an
13 enterprise zone and certified by the department under subsection
14 (a) may exceed the current limitation placed on the net loss
15 deduction, as provided for in Article IV of the act of March 4,
16 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, up to
17 but not exceeding $1,000,000 in any taxable year. Beginning in
18 1996 and thereafter, business located in enterprise zones and
19 certified by the department under subsection (a) may carry over
20 a net loss for seven taxable years.
21 Section 10. Guidelines and regulations.
22 (a) One-year exemption from review.--In order to facilitate
23 the transition from a demonstration program, the department
24 shall have the power and authority to promulgate, adopt and use
25 guidelines which shall be published in the Pennsylvania
26 Bulletin. The guidelines shall not be subject to review pursuant
27 to section 205 of the act of July 31, 1968 (P.L.769, No.240),
28 referred to as the Commonwealth Documents Law, sections 204(b)
29 and 301(10) of the act of October 15, 1980 (P.L.950, No.164),
30 known as the Commonwealth Attorneys Act, or the act of June 25,
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1 1982 (P.L.633, No.181), known as the Regulatory Review Act, and
2 shall be effective for a period not to exceed one year from the
3 effective date of this act.
4 (b) Expiration of exemption.--After the expiration of the
5 one-year period, all guidelines shall expire and shall be
6 replaced by regulations which shall have been promulgated,
7 adopted and published as provided by law.
8 Section 11. Special provisions.
9 (a) Existing enterprise zones.--Enterprise zones that have
10 been established pursuant to the guidelines issued in the
11 Pennsylvania Bulletin, February 12, 1983, and April 2, 1988, and
12 upon the effective date of this act are certified by the
13 department as active participants in the Enterprise Zone
14 Economic Revitalization Program, are hereby continued, but for
15 purposes of future certification shall be deemed subject to all
16 the terms and conditions as set forth in this act. Existing
17 enterprise zones that are, upon the effective date of this act,
18 in the first year of the enterprise zone planning cycle or in
19 the fifth year or more as a designated enterprise zone may,
20 subject to approval by the department, be granted an extension
21 of their existing designation and funding for a period not to
22 exceed one year. At the end of such time, subject to the
23 provisions of section 5(b), enterprise zones in the planning
24 cycle may be designated as enterprise development zones. Also at
25 the end of such time, designated enterprise zones may be
26 classified as enterprise investment zones, subject to the
27 provisions of section 5(c).
28 (b) Enterprise zones in nonmetropolitan counties.--The
29 department shall ensure the opportunity for distressed areas in
30 counties not classified as metropolitan statistical areas to
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1 participate in the Enterprise Zone Economic Revitalization
2 Program through the development of a strategy for this purpose,
3 and shall specify for each year in which an appropriation for
4 the Enterprise Zone Economic Revitalization Program is requested
5 from the General Assembly, the amount of the appropriation to be
6 spent in enterprise zones in nonmetropolitan counties.
7 (c) Relocation and job increase.--This act is expressly not
8 intended to encourage the relocation of a company from one
9 jurisdiction within this Commonwealth to another. Any request by
10 a municipal corporation for assistance to be provided a firm
11 which currently operates a similar business in this Commonwealth
12 must be accompanied by a demonstration that the total net
13 increase in full-time equivalent jobs, using the current number
14 of jobs in all similar businesses operated by the private
15 company in this Commonwealth as a base, shall be at least 10%.
16 This requirement shall not apply to private companies relocating
17 from small business incubators.
18 Section 12. Reporting requirements.
19 On or before the March 1 following the adoption of this act
20 and in each succeeding year, the department shall provide a
21 report to the Secretary of the Senate and the Chief Clerk of the
22 House of Representatives for the preceding fiscal year. The
23 report shall contain, at a minimum, the following information:
24 (1) A list of approved enterprise planning zones,
25 enterprise development zones and enterprise investment zones.
26 (2) A list of enterprise zone applications not approved.
27 (3) A summary of each approved enterprise zone,
28 including the strategy for economic development in the zone;
29 the local enterprise zone organization; the amount of State
30 enterprise zone funding received to date and the principal
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1 uses of such funding; other benefits provided to the
2 enterprise zone such as grants, loans and tax reimbursements;
3 the amount of private funding and the principal uses of such
4 funding; and accomplishments, measured in specific terms such
5 as new businesses formed, increase in employment, population
6 and income above the poverty level, reduction in the vacancy
7 rate in commercial and industrial buildings and increase in
8 poverty tax revenues.
9 (4) A summary of the strategy designed to ensure the
10 opportunity for distressed areas in nonmetropolitan counties
11 to participate in the Enterprise Zone Economic Revitalization
12 Program, the amount of State grant assistance and other State
13 assistance provided to enterprise zones in nonmetropolitan
14 counties, the impact of the program on distressed areas in
15 nonmetropolitan counties and, in any year preceding a fiscal
16 year for which an appropriation for the Enterprise Zone
17 Economic Revitalization Program has been or will be
18 requested, a description of any changes in the strategy
19 proposed for the forthcoming fiscal year.
20 Section 13. Neighborhood assistance tax credit.
21 One-half of the total amount of tax credit granted for
22 programs approved under the act of November 29, 1967 (P.L.636,
23 No.292), known as the Neighborhood Assistance Act, shall be set
24 aside exclusively for private companies which make qualified
25 investments to rehabilitate, expand or improve buildings or
26 lands which promote community economic development and which
27 occur in portions of impoverished areas which have been
28 designated as enterprise planning, development or investment
29 zones.
30 Section 14. Repeals.
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1 (a) Absolute.--The act of July 9, 1986 (P.L.1216, No.108),
2 known as the Enterprise Zone Municipal Tax Exemption
3 Reimbursement Act, is repealed.
4 (b) Inconsistent.--Section 4 of the act of November 29, 1967
5 (P.L.636, No.292), known as the Neighborhood Assistance Act, is
6 repealed insofar as it is inconsistent with section 13 of this
7 act.
8 Section 15. Expiration.
9 This act shall be subject to evaluation and review and shall
10 expire ten years from its effective date.
11 Section 16. Effective date.
12 This act shall take effect immediately.
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