HARRISBURG – Legislation authored by Senate Majority Leader Dominic Pileggi (R-9) to strengthen Pennsylvania's Keystone Opportunity Zone (KOZ) program, Senate Bill 1237, has been sent to Governor Tom Corbett for his signature.
KOZs, which provide tax benefits to companies which create jobs in designated zones, have been used in Pennsylvania since 1999. Business Facilities magazine has called KOZs "the number one economic development strategy in the nation."
Governor Corbett supports the legislation and is expected to sign it. SB 1237 authorizes the creation of up to 15 new zones, known as Keystone Opportunity Expansion Zones (KOEZs). As with existing KOZs, the tax benefits in KOEZs will be available for 10 years and all new zones must be approved by local governments and school boards.
For businesses which invest at least $1 billion and create at least 400 jobs within seven years, the tax benefits will be extended to 15 years.
The legislation also increases oversight powers and responsibilities for the Department of Community and Economic Development (DCED). DCED will be required to monitor job creation and retention data, information on what types of jobs are created, the average hourly wages, and more. More here.
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