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PA HB177
Bill
Status
3/10/2025
Primary Sponsor
John Lawrence
Click for details
AI Summary
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Department of Community and Economic Development may designate up to 30 Keystone Opportunity Dairy Zones (15 Class A, 20 Class B) to support dairy processing facilities using at least 75% Pennsylvania milk, with tax benefits lasting up to 10 years and potential 3-year extensions
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Class A zones require minimum $10 million private investment and creation of 25+ jobs in dairy processing facilities on 5-150 acres; Class B zones target small-scale operations with minimum $100,000 investment on 5-25 acres using milk from farms with 250 or fewer cows
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Qualified businesses and zone residents receive exemptions from state sales/use tax, personal income tax, corporate net income tax, and local taxes including real property tax, earned income tax, business privilege tax, and mercantile license tax
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Political subdivisions must pass binding ordinances providing 100% abatement of real property taxes and other local tax exemptions for the zone's duration as a condition of designation
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Businesses relocating from a zone within 5 years must refund 66% of tax benefits received; relocation within 5-9 years requires 33% refund; civil penalties up to $50,000 and criminal misdemeanor charges apply for violations
Legislative Description
Providing for the creation of keystone opportunity dairy zones to facilitate the economic development of Pennsylvania's dairy industry; authorizing expenditures; providing for tax exemptions, tax deductions, tax abatements and tax credits; creating additional obligations of the Commonwealth and local governmental units; prescribing powers and duties of certain State and local departments, agencies and officials; and imposing penalties.
Last Action
Referred to Agriculture & Rural Affairs
3/10/2025