HARRISBURG – New state tax incentives would be created to promote redevelopment and reuse of abandoned or neglected factory or mill buildings in PA under legislation authored by Northampton County Rep. Robert Freeman. Repurposing an old factory or mill for retail, office or arts space, or transforming them into dwellings, encourages economic development and improves the quality of life of a community. House Bill 653 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 $7,000 per employee; and an interest income tax credit of 15% on the interest from loans for the expenditures within the building. The limit would be up to $12,000 per taxable year. The loan holder also would be eligible for a 100% tax credit, up to $25,000 per taxable year, on interest from loans for substantial rehabilitation. The bill was referred to the House Finance Committee.
REP. ROBERT FREEMAN