This bill amends the Tax Reform Code of 1971 by introducing a new article, ARTICLE XVII-M, which establishes definitions and provisions for tax credits aimed at the rehabilitation of factory or mill buildings. To qualify as a "program-eligible building," a structure must have been constructed before January 1, 1973, be at least 75% vacant for a minimum of 24 months, and be proposed for substantial rehabilitation. The bill outlines a process for municipalities to request the designation of such buildings and assigns responsibilities to the Department of Community and Economic Development for administering the program.

Additionally, the bill provides a tax credit of up to 25% of rehabilitation costs, capped at $1,500,000, which can be claimed within five years of a building's final designation. It includes provisions for revoking eligibility due to noncompliance and imposes penalties on owners who do not maintain operations in the rehabilitated buildings for five years post-credit receipt. The bill also mandates the secretary to manage the program, post guidelines online, and submit annual reports to the General Assembly detailing the program's effectiveness and taxpayer participation. Notably, the report's information will be public, overriding existing confidentiality laws regarding tax records, and the provisions will take effect for tax years beginning after December 31, 2025.

Statutes/Laws affected:
Printer's No. 1873 (Jun 09, 2025): P.L.6, No.2, P.L.1750, No.226