|Posted:||July 1, 2020 02:52 PM|
|From:||Representative Mike Zabel|
|To:||All House members|
|Subject:||Closing the Keystone Opportunity Zone Loophole|
|Recently, the Commonwealth Court of Philadelphia ruled that Dechert LLP, considered the richest law firm in Philadelphia, would be allowed to collect a second round of Keystone Opportunity Zone (KOZ) tax breaks when they move from their current KOZ to a new one. The tax breaks in their current KOZ in Cira Centre expired in 2018; before that, the city provided an estimated $400 million in tax breaks to firms in the Cira Centre since its conception in 2005.
The KOZ Program was originally created to utilize communities’ unused, abandoned land and buildings and revitalize them into areas that will benefit and add value to each community. Any eligible business or resident within a zone may apply for tax credits toward state and local taxes. However, there is no provision that would prohibit qualified businesses from moving from an expired KOZ to a new one and thus receiving a second round of tax breaks.
To continue the good work of the KOZ program and prevent businesses from taking advantage of current provisions, I am introducing legislation that would prohibit qualified businesses from essentially “zone-hopping” from one KOZ to another and receiving multiple tax breaks from that new KOZ.
Please join me in co-sponsoring legislation that would continue to provide economic growth and employment to our most neglected communities.