Pennsylvania Incentives Enacted for Strategic Development Areas

On November 20, 2006, Pennsylvania Governor, Edward Rendell, signed S.B. 854 which enacts numerous exemptions, abatements, and credits. Among the list of tax incentives, a sales and use tax exemption is granted for retails sales of services or tangible personal property, other than motor vehicles, for use at a facility located in a strategic development area (SDA). Furthermore, the exemption applies to the sale or use of building machinery and equipment to a qualified business or a contractor with a construction contract with a qualified business for items to be used only by the qualified business at its facility in the SDA. For a business to be eligible for the incentives, they must own or lease real property in an SDA on which the business actively conducts a trade, profession, or business involved in energy, bioscience or manufacturing, or a related activity. Moreover, the business must meet one of the following criteria: 1) create or maintain a minimum of 500 jobs within the first three years of operations within the SDA, and 2) invest a minimum of $45 million in capital investment in the property located in the SDA within the first three years of operation. Additional incentives, rules, and regulations apply. (Act 151, S.B. 854, Laws 2006)

Posted on February 15, 2007