HARRISBURG – New state tax incentives would be created to promote redevelopment and reuse of derelict factory or mill buildings in PA under legislation reintroduced by Northampton County Rep. Robert Freeman. The lawmaker says repurposing an old factory or mill for retail or office space or transforming them into dwellings, encourages economic development and improves the quality of life of a community. House Bill 2280 would establish three types of tax incentive programs: a 25% tax credit for the rehab and reconstruction costs incurred by the owner; a business tax credit equal to the salaries and wages paid to full-time employees, up to a maximum of $5,000 per employee; and an interest income tax credit of 10% on the interest from loans for the expenditures within the building. The limit would be up to $10,000 per taxable year. The loan holder also would be eligible for a 100% tax credit, up to $20,000 per taxable year, on interest from loans for substantial rehabilitation. The bill is before the PA House Finance Committee for consideration.

REP. ROBERT FREEMAN