Bill > HB1575

This bill amends the Tax Reform Code of 1971 to create a new tax credit program for the economic revitalization of older factory and mill buildings, specifically targeting buildings constructed before 1973 that have been at least 75% vacant for 24 months. The program allows building owners to receive a tax credit of up to 25% of rehabilitation and reconstruction costs, with a maximum credit of $1,500,000, for transforming these buildings for various uses including residential, commercial, cultural, or industrial purposes. Municipalities must expedite building permits, follow historic preservation standards, and obtain approval from the Pennsylvania Historical and Museum Commission for rehabilitations. To qualify, buildings must meet specific criteria such as having at least one floor, being primarily used for manufacturing or commercial purposes, and being designated by the local municipality. The tax credit can be used against various state tax liabilities and can be carried forward for up to seven years. The total aggregate tax credits are limited to $15 million per fiscal year, and building owners must maintain operations in the rehabilitated building for five years or risk repaying the entire tax credit. The Department of Community and Economic Development will administer the program and is required to submit annual reports to the General Assembly detailing its effectiveness, and the program will begin applying to tax years starting after December 31, 2025.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=1575