The bill amends the Tax Reform Code of 1971 by introducing Article XVII-M, which establishes a framework for tax credits aimed at the rehabilitation of factory or mill buildings. It expands the definition of "tax credit" to include those under this new article and outlines specific criteria for buildings to be designated as eligible for these credits. To qualify, buildings must be at least 75% vacant for a minimum of 24 months and proposed for substantial rehabilitation. The application process allows building owners to claim credits for rehabilitation costs incurred after receiving a final designation, with a credit of up to 25% of costs, capped at $1,500,000. The total amount of tax credits approved under this article is limited to $15,000,000 per fiscal year, and penalties are established for owners who do not maintain operations in the rehabilitated buildings for five years, although these penalties may be waived under certain conditions.

Additionally, the bill outlines the responsibilities of the secretary in administering the tax credit program, including the development of guidelines for maintaining operations in program-eligible buildings, which must be publicly posted. It also requires the secretary to submit an annual report to the General Assembly starting June 30, 2026, detailing the program's effectiveness, taxpayer participation, and recommendations for changes. Notably, the report's information will be public, overriding existing confidentiality laws regarding tax records, and must be accessible on the department's website. The provisions of this new article will take effect for tax years beginning after December 31, 2025, and the act will be effective immediately upon passage.

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