PRINTER'S NO. 1039
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
884
Session of
2015
INTRODUCED BY SMUCKER AND PILEGGI, JUNE 12, 2015
REFERRED TO FINANCE, JUNE 12, 2015
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, providing for continuation for
new job creation or new capital investment.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. 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, is
amended by adding a section to read:
Section 301.8. Continuation for new job creation or new capital
investment.
(a) Purpose.--This section shall govern the continuation of
a keystone opportunity zone, keystone opportunity expansion zone
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or keystone opportunity improvement zone or subzone for one or
more parcels located within the zone or subzone.
(b) Applicability.--
(1) This section applies only to a keystone opportunity
zone, keystone opportunity expansion zone or keystone
opportunity improvement zone or subzone that expired in 2014
or will expire prior to January 1, 2026.
(2) This section does not apply to an exemption,
deduction, abatement or credit authorized under Chapter 7.
The department may not require a qualified political
subdivision to approve an application under this section
regarding a parcel that is located within the qualified
political subdivision.
(c) Application.--
(1) The following may apply to the department for
approval to continue a keystone opportunity zone, keystone
opportunity expansion zone or keystone opportunity
improvement zone or subzone for one or more parcels located
within the zone or subzone:
(i) one qualified business within the zone or
subzone as a sole applicant; or
(ii) two or more qualified businesses within the
zone or subzone as a joint applicant.
(2) To continue the tax exemption, deduction, abatement
or credit authorized under Chapter 5 regarding a parcel under
paragraph (1), the applicant must submit an application to
the department no later than three months prior to the
expiration date of the existing keystone opportunity zone,
keystone opportunity expansion zone or keystone opportunity
improvement zone or subzone.
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(3) An application under this section shall include all
the information required by the department as established in
guidelines to be published by the department.
(4) Each sole or joint applicant must:
(i) Have a minimum of 2,500 employees located within
this Commonwealth at the time of application.
(ii) Demonstrate a prior minimum capital investment
within this Commonwealth of at least $300 million.
(iii) Conduct active business operations from one or
more facilities located on the parcel or parcels that are
the subject of the application.
(iv) Otherwise be in compliance with the provisions
of this act.
(d) Review and approval.--
(1) In consultation with the Department of Revenue, the
department shall review each application under subsection
(c). The department shall complete its review within three
months of receipt of the application.
(2) If an applicant has satisfied the requirements of
this section, the department shall approve the application
under subsection (c).
(e) Certifications.--
(1) Upon the approval of the application under
subsection (c), the department shall issue a certification of
the exemptions, deductions, abatements or credits authorized
under Chapter 5 for the parcel or parcels.
(2) Subject to paragraph (3), the certification, along
with the exemptions, deductions, abatements or credits, shall
be effective beginning on the day following the original
expiration date of the existing keystone opportunity zone,
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keystone opportunity expansion zone or keystone opportunity
improvement zone or subzone and ending on the day that is 10
years after the original expiration date. The exemptions,
deductions, abatements or credits shall apply only to
business activity conducted within the parcel or parcels
identified in the approved application.
(3) The department shall issue the following to each
applicant under subsection (c) and any other qualified
business located within the parcel or parcels approved under
this section:
(i) For the first year of the continuation period, a
certification as described under section 307.
(ii) Subject to paragraph (4), after the first year
of the continuation period, an annual renewal of the
certification issued in accordance with section 307, if
the qualified business as the sole applicant or the
qualified businesses as joint applicant, taken as a
whole, demonstrates to the department that the business
or businesses have:
(A) increased employment within this
Commonwealth by 100 or more jobs during the previous
year; or
(B) made capital investment within this
Commonwealth of at least $10,000,000 during the
previous year.
(4) If the qualified business or businesses demonstrate
to the department during an annual renewal of the
certification that the business or businesses have increased
employment within this Commonwealth by 300 or more jobs
during the previous year or made capital investment within
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this Commonwealth in excess of $50,000,000 during the
previous year, the employment and capital investment
requirements of paragraph (3)(ii) shall not apply to a
subsequent annual renewal of the certification.
(5) If the qualified business or businesses are unable
to meet the employment and capital investment requirements of
paragraph (3)(ii), the certification may not be renewed for
the following year.
(6) Failure to receive an annual renewal of a
certification for one year does not:
(i) disqualify the qualified business or businesses
from submitting an application for annual renewal in a
subsequent year; or
(ii) impact the expiration date of the continuation
of a keystone opportunity zone, keystone opportunity
expansion zone or keystone opportunity improvement zone
or subzone.
(f) Expiration.--
(1) A continuation of a keystone opportunity zone,
keystone opportunity expansion zone or keystone opportunity
improvement zone or subzone shall expire no later than 10
years following the effective date of certification by the
department of the exemptions, deductions, abatements or
credits.
(2) If a qualified business that is a sole applicant
under this section departs from the continued parcel or
parcels prior to the expiration of the continuation, the
continuation shall expire upon the date of removal of the
qualified business.
(3) If less than all of the qualified businesses that
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are part of the joint application depart from the continued
parcel or parcels prior to the expiration of the
continuation, the continuation shall not expire. The
continuation shall expire upon the date of removal of the
last qualified business that was part of the joint
application.
(g) Employment and capital investment.--
(1) (i) For purposes of calculating employment and
capital investment requirements under subsection (e)(3)
(ii), the department may accept increased employment or
capital investment within this Commonwealth resulting
from the creation, acquisition or merger of the qualified
business or businesses with a new or existing business
entity that occurs after the certification of the
continued parcel or parcels.
(ii) This paragraph does not apply to jobs that
existed within this Commonwealth prior to the date of the
acquisition or merger.
(2) The determination by the department as to whether
the employment or capital investment requirements of
subsections (c)(4) and (e)(3)(ii) have been met shall be
binding upon the Department of Revenue.
Section 2. This act shall take effect in 60 days.
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