Schweiker signs Keystone Opportunity Zone bill

Commonwealth’s version of the Empire Zone

HARRISBURG, PA — Pennsylvania has expanded its economic development zone legislation.

Governor Mark Schweiker signed legislation last week expanding the Keystone Opportunity Zone (KOZ) program.

“Pennsylvania’s tax-free Keystone Opportunity Zones have proven to be a powerful job-creation and community-development tool,” Schweiker said. “With this legislation allowing the expansion of the program, it will continue to serve as one of our most innovative and successful economic-development tools for revitalizing distressed areas.

“It is a simple concept—if you locate in a zone as a resident or a business, you don’t pay taxes. What better way to revitalize areas than to remove the tax barrier!”

Under the legislation, new sub-zones may be added, or existing sub-zones in the KOZ program may be enhanced or enlarged to include new property. Pennsylvania’s KOZs—first designated on February 25, 1999, and expanded on March 27, 2001—virtually eliminate state and local taxes to stimulate job creation and community renewal.

The program has created more than 10,000 new jobs and retained more than 5,300 jobs statewide.

The legislation also creates the Keystone Opportunity Improvement Zone program, a one-time enhancement to the KOZ program to allow a fast and flexible designation for economic development purposes.