THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY PILEGGI, TOMLINSON, BROWNE, ERICKSON, STACK, FONTANA, GREENLEAF, FARNESE, RAFFERTY, WAUGH, COSTA, MENSCH, BOSCOLA AND SOLOBAY, SEPTEMBER 7, 2011

REFERRED TO FINANCE, SEPTEMBER 7, 2011  

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, further providing for

additional expansion zones; and providing for extension for

new job creation.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 301.4 of 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, added July 10, 2008 (P.L.1014, No.79), is

amended to read:

Section 301.4.  Additional keystone opportunity expansion zones.

(a)  Establishment.--

(1)  In addition to any designations under section 301.1,

the department may designate up to 15 additional keystone

opportunity expansion zones in accordance with this section.

Each additional keystone opportunity expansion zone shall:

(i)  Not be less than ten acres in size, unless

contiguous to an existing zone.

(ii)  Not exceed, in the aggregate, a total of 350

acres.

(iii)  Be comprised of parcels that meet any of the

following criteria:

(A)  Are deteriorated, underutilized or

unoccupied on the effective date of this clause.

(B)  Are occupied by a business that:

(I)  Creates or retains at least 1,400 full-

time jobs in this Commonwealth within three years

of the designation of the keystone opportunity

expansion zone; and

(II)  Makes a capital investment of at least

$750,000,000 in the additional keystone

opportunity enhancement zone within three years

of the designation of the keystone opportunity

expansion zone.

(2)  The department shall immediately notify political

subdivisions located within the area designated.

(b)  Authorization.--Persons and businesses within an

additional keystone opportunity expansion zone authorized under

subsection (a) shall be entitled to all tax exemptions,

deductions, abatements or credits set forth under this act,

except exemptions for sales and use tax under section 511(a) or

705(a), for a period of ten years beginning January 1, 2010, and

ending on December 31, 2020. Exemptions for sales and use taxes

under sections 511 and 705 shall commence upon designation of

the zone by the department.

(c)  Application.--In order to receive a designation under

subsection (a), the department must receive an application from

a political subdivision or its designee no later than May 1,

2009. The application must contain the information required

under section 302(a)(1), (2)(i) and (ix) and (6). The

application must include all ordinances, resolutions or other

required action adopted by all political subdivisions in which

the keystone opportunity expansion zone is located providing the

tax exemptions, deductions, abatements and credits authorized

under Chapter 7. The department, in consultation with the

Department of Revenue, shall review the application and, if

approved, issue a certification of all tax exemptions,

deductions, abatements or credits under this [part] act for the

additional keystone opportunity expansion zone within three

months of receipt of the application. The department shall act

on an application under this subsection by June 30, 2009.

(d)  Unused keystone opportunity expansion zones.--

(1)  The department may designate any of the 15 remaining

keystone opportunity expansion zones established under

subsection (a) for which there was no designation by the

department as of the effective date of this subsection. To

receive a designation of a remaining keystone opportunity

expansion zone under this subsection, the department must

receive an application from a political subdivision or its

designee by November 1, 2011. The application must comply

with subsection (c) except for the application deadline. The

department, in consultation with the Department of Revenue,

shall review the application and, if approved, shall issue a

certification of all tax exemptions, deductions, abatements

or credits under this act for the additional keystone

opportunity expansion zone within three months of receipt of

the application.

(2)  Persons and businesses within an additional keystone

opportunity expansion zone authorized under paragraph (1)

shall be entitled to all tax exemptions, deductions,

abatements or credits set forth under this act, except

exemptions for sales and use tax under section 511(a) or

705(a), for a period of ten years beginning January 1, 2012,

and ending December 31, 2022. Exemptions for sales and use

taxes under sections 511 and 705 shall commence upon

designation of the zone by the department.

Section 2.  The act is amended by adding a section to read:

Section 301.7.  Extension for new job creation.

(a)  Extension.--The department may approve an application to

extend the exemptions, deductions, abatements and credits under

this act for a parcel in a keystone opportunity zone, keystone

opportunity expansion zone or keystone opportunity improvement

zone or a subzone for a period of nine years if the extension

will result in the creation of at least 200 new jobs.

(b)  Application.--In order to extend the tax benefits for

parcels under subsection (a), the department must receive an

application from a political subdivision or its designee by

March 1, 2012. The application must contain the information

required under section 302(a)(1), (2), (3), (5) and (6). The

application must include all ordinances, resolutions or other

required action adopted by all political subdivisions in which

the parcel is located adopting the extension of all tax

exemptions, deductions, abatements and credits authorized under

Chapter 7. The department, in consultation with the Department

of Revenue, shall review the application and, if approved, issue

a certification of all tax exemptions, deductions, abatements or

credits under this chapter for the unoccupied parcel within

three months of receipt of the application. The certification

shall be effective on the day following the expiration date of

the existing zone or subzone.

(c)  Expiration.--All extensions of an unoccupied parcel

certified under subsection (a) shall expire no later than nine

years following the expiration date of the existing keystone

opportunity zone, keystone opportunity expansion zone or

keystone opportunity improvement zone.

Section 3.  This act shall take effect July 1, 2011, or

immediately, whichever is later.