A bill that would provide tax credits to developers seeking to renovate or rehabilitate historic commercial structures cleared the state Senate on Monday and will now be taken up by the House.
Introduced by Lancaster County Republican Sen. Lloyd Smucker, Senate Bill 1150 would create a historic tax credit program available to any municipality in the commonwealth with a registered historic district.
The credit would cover up to 25 percent of a project's cost, up to a maximum of $500,000. SB 1150 would provide an initial $10 million appropriation in tax credit certificates that would be available on a first-come, first-served basis, Smucker said.
"A state historic tax credit will be an important tool to help our cities, boroughs and townships better compete for investment capital," Smucker said in a news release. "Renewing historic structures is a tried and tested way to not only attract investment, but also preserve the character of our communities."
The historic tax credit program would be administered by the state Department of Community and Economic Development. Applicants for the program also would be required to submit a qualified rehabilitation plan to be reviewed by the Pennsylvania Historical and Museum Commission, according to the bill.
Over in the House, a bipartisan effort to close the so-called Delaware loophole and reduce Pennsylvania's 9.9 percent corporate net income tax to 6.9 percent cleared the House Finance Committee.
House Bill 2150, a bill sponsored by Indiana County Republican Rep. Dave Reed and York County Democratic Rep. Eugene DePasquale, was passed by a 19-6 vote.
The proposal would add an "expense add-back provision" to prevent corporations from reducing or avoiding taxes through the Delaware loophole, beginning in 2013. HB 2150 also would shift the tax apportionment system to a single-sales factor and phase out the cap on carrying forward net operating losses into a subsequent tax year.
An opposing loophole bill has been proposed by Luzerne County Democratic Rep. Phyllis Mundy.