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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY PILEGGI, TOMLINSON, BROWNE, ERICKSON, STACK, FONTANA, GREENLEAF, FARNESE, RAFFERTY, WAUGH, COSTA, MENSCH, BOSCOLA AND SOLOBAY, SEPTEMBER 7, 2011 |
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| REFERRED TO FINANCE, SEPTEMBER 7, 2011 |
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| AN ACT |
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1 | Amending the act of October 6, 1998 (P.L.705, No.92), entitled, |
2 | as amended, "An act providing for the creation of keystone |
3 | opportunity zones and keystone opportunity expansion zones to |
4 | foster economic opportunities in this Commonwealth, to |
5 | facilitate economic development, stimulate industrial, |
6 | commercial and residential improvements and prevent physical |
7 | and infrastructure deterioration of geographic areas within |
8 | this Commonwealth; authorizing expenditures; providing tax |
9 | exemptions, tax deductions, tax abatements and tax credits; |
10 | creating additional obligations of the Commonwealth and local |
11 | governmental units; and prescribing powers and duties of |
12 | certain State and local departments, agencies and officials," |
13 | in keystone opportunity zones, further providing for |
14 | additional expansion zones; and providing for extension for |
15 | new job creation. |
16 | The General Assembly of the Commonwealth of Pennsylvania |
17 | hereby enacts as follows: |
18 | Section 1. Section 301.4 of the act of October 6, 1998 |
19 | (P.L.705, No.92), known as the Keystone Opportunity Zone, |
20 | Keystone Opportunity Expansion Zone and Keystone Opportunity |
21 | Improvement Zone Act, added July 10, 2008 (P.L.1014, No.79), is |
22 | amended to read: |
23 | Section 301.4. Additional keystone opportunity expansion zones. |
24 | (a) Establishment.-- |
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1 | (1) In addition to any designations under section 301.1, |
2 | the department may designate up to 15 additional keystone |
3 | opportunity expansion zones in accordance with this section. |
4 | Each additional keystone opportunity expansion zone shall: |
5 | (i) Not be less than ten acres in size, unless |
6 | contiguous to an existing zone. |
7 | (ii) Not exceed, in the aggregate, a total of 350 |
8 | acres. |
9 | (iii) Be comprised of parcels that meet any of the |
10 | following criteria: |
11 | (A) Are deteriorated, underutilized or |
12 | unoccupied on the effective date of this clause. |
13 | (B) Are occupied by a business that: |
14 | (I) Creates or retains at least 1,400 full- |
15 | time jobs in this Commonwealth within three years |
16 | of the designation of the keystone opportunity |
17 | expansion zone; and |
18 | (II) Makes a capital investment of at least |
19 | $750,000,000 in the additional keystone |
20 | opportunity enhancement zone within three years |
21 | of the designation of the keystone opportunity |
22 | expansion zone. |
23 | (2) The department shall immediately notify political |
24 | subdivisions located within the area designated. |
25 | (b) Authorization.--Persons and businesses within an |
26 | additional keystone opportunity expansion zone authorized under |
27 | subsection (a) shall be entitled to all tax exemptions, |
28 | deductions, abatements or credits set forth under this act, |
29 | except exemptions for sales and use tax under section 511(a) or |
30 | 705(a), for a period of ten years beginning January 1, 2010, and |
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1 | ending on December 31, 2020. Exemptions for sales and use taxes |
2 | under sections 511 and 705 shall commence upon designation of |
3 | the zone by the department. |
4 | (c) Application.--In order to receive a designation under |
5 | subsection (a), the department must receive an application from |
6 | a political subdivision or its designee no later than May 1, |
7 | 2009. The application must contain the information required |
8 | under section 302(a)(1), (2)(i) and (ix) and (6). The |
9 | application must include all ordinances, resolutions or other |
10 | required action adopted by all political subdivisions in which |
11 | the keystone opportunity expansion zone is located providing the |
12 | tax exemptions, deductions, abatements and credits authorized |
13 | under Chapter 7. The department, in consultation with the |
14 | Department of Revenue, shall review the application and, if |
15 | approved, issue a certification of all tax exemptions, |
16 | deductions, abatements or credits under this [part] act for the |
17 | additional keystone opportunity expansion zone within three |
18 | months of receipt of the application. The department shall act |
19 | on an application under this subsection by June 30, 2009. |
20 | (d) Unused keystone opportunity expansion zones.-- |
21 | (1) The department may designate any of the 15 remaining |
22 | keystone opportunity expansion zones established under |
23 | subsection (a) for which there was no designation by the |
24 | department as of the effective date of this subsection. To |
25 | receive a designation of a remaining keystone opportunity |
26 | expansion zone under this subsection, the department must |
27 | receive an application from a political subdivision or its |
28 | designee by November 1, 2011. The application must comply |
29 | with subsection (c) except for the application deadline. The |
30 | department, in consultation with the Department of Revenue, |
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1 | shall review the application and, if approved, shall issue a |
2 | certification of all tax exemptions, deductions, abatements |
3 | or credits under this act for the additional keystone |
4 | opportunity expansion zone within three months of receipt of |
5 | the application. |
6 | (2) Persons and businesses within an additional keystone |
7 | opportunity expansion zone authorized under paragraph (1) |
8 | shall be entitled to all tax exemptions, deductions, |
9 | abatements or credits set forth under this act, except |
10 | exemptions for sales and use tax under section 511(a) or |
11 | 705(a), for a period of ten years beginning January 1, 2012, |
12 | and ending December 31, 2022. Exemptions for sales and use |
13 | taxes under sections 511 and 705 shall commence upon |
14 | designation of the zone by the department. |
15 | Section 2. The act is amended by adding a section to read: |
16 | Section 301.7. Extension for new job creation. |
17 | (a) Extension.--The department may approve an application to |
18 | extend the exemptions, deductions, abatements and credits under |
19 | this act for a parcel in a keystone opportunity zone, keystone |
20 | opportunity expansion zone or keystone opportunity improvement |
21 | zone or a subzone for a period of nine years if the extension |
22 | will result in the creation of at least 200 new jobs. |
23 | (b) Application.--In order to extend the tax benefits for |
24 | parcels under subsection (a), the department must receive an |
25 | application from a political subdivision or its designee by |
26 | March 1, 2012. The application must contain the information |
27 | required under section 302(a)(1), (2), (3), (5) and (6). The |
28 | application must include all ordinances, resolutions or other |
29 | required action adopted by all political subdivisions in which |
30 | the parcel is located adopting the extension of all tax |
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1 | exemptions, deductions, abatements and credits authorized under |
2 | Chapter 7. The department, in consultation with the Department |
3 | of Revenue, shall review the application and, if approved, issue |
4 | a certification of all tax exemptions, deductions, abatements or |
5 | credits under this chapter for the unoccupied parcel within |
6 | three months of receipt of the application. The certification |
7 | shall be effective on the day following the expiration date of |
8 | the existing zone or subzone. |
9 | (c) Expiration.--All extensions of an unoccupied parcel |
10 | certified under subsection (a) shall expire no later than nine |
11 | years following the expiration date of the existing keystone |
12 | opportunity zone, keystone opportunity expansion zone or |
13 | keystone opportunity improvement zone. |
14 | Section 3. This act shall take effect July 1, 2011, or |
15 | immediately, whichever is later. |
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