1Amending the act of October 6, 1998 (P.L.705, No.92), entitled,
2as amended, "An act providing for the creation of keystone
3opportunity zones and keystone opportunity expansion zones to
4foster economic opportunities in this Commonwealth, to
5facilitate economic development, stimulate industrial,
6commercial and residential improvements and prevent physical
7and infrastructure deterioration of geographic areas within
8this Commonwealth; authorizing expenditures; providing tax
9exemptions, tax deductions, tax abatements and tax credits;
10creating additional obligations of the Commonwealth and local
11governmental units; and prescribing powers and duties of
12certain State and local departments, agencies and officials,"
13providing for limited extensions and phaseout of the keystone
14opportunity zones.

15 The General Assembly of the Commonwealth of Pennsylvania hereby
16enacts as follows:

17Section 1. The act of October 6, 1998 (P.L.705, No.92), 
18known as the Keystone Opportunity Zone, Keystone Opportunity 
19Expansion Zone and Keystone Opportunity Improvement Zone Act, is 
20amended by adding a section to read:

21Section 301.8. Limited extensions and phaseout of the keystone
22opportunity zones.

23(a) Limited extension.--An individual or business that meets

1the criteria and is granted any tax exemption, deduction,
2abatement or credit under this chapter prior to the December 31,
32013, deadline shall be entitled to the tax exemption,
4deduction, abatement or credit for ten years.

5(b) Phaseout.--An individual or business that receives an
6extension under subsection (a) shall be entitled to the
7following:

8(1) In the first through sixth years, an individual or
9business shall be entitled to 100% of the tax exemption,
10deduction, abatement or credit.

11(2) In the seventh year, an individual or business shall
12be entitled to 80% of the tax exemption, deduction, abatement
13or credit.

14(3) In the eighth year, an individual or business shall
15be entitled to 60% of the tax exemption, deduction, abatement
16or credit.

17(4) In the ninth year, an individual or business shall
18be entitled to 40% of the tax exemption, deduction, abatement
19or credit.

20(5) In the tenth year, an individual or business shall
21be entitled to 20% of the tax exemption, deduction, abatement
22or credit.

23Section 2. This act shall take effect in 60 days.