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PA SB384
Bill
Status
3/17/2025
Primary Sponsor
Doug Mastriano
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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) offering state and local tax exemptions, deductions, abatements, and credits for up to 10 years, with possible 3-year extensions
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Class A zones require minimum $10,000,000 private investment in dairy processing facilities and creation of 25+ jobs; Class B zones require minimum $100,000 investment in small-scale dairy processing facilities using milk from farms with 250 or fewer milking cows
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Qualified businesses receive exemptions from state sales/use tax, personal income tax, corporate net income tax, and local taxes including real property tax (100% abatement), earned income/net profits taxes, and business privilege taxes
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Dairy processing facilities must use at least 75% Pennsylvania milk to qualify; zones range from 5-150 acres for Class A and 5-25 acres for Class B, and cannot encompass an entire political subdivision
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Businesses relocating within 5 years must refund 66% of tax benefits received; relocating between 5-9 years requires 33% refund; civil penalties up to $50,000 may be imposed 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 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 Community, Economic & Recreational Development
3/17/2025