New state bill would offer tax incentives for redevelopment of old factories
HARRISBURG, Pa. - A Lehigh Valley lawmaker wants to encourage the redevelopment of old factory or mill buildings.
Pennsylvania state Rep. Robert Freeman authored a bill that would create tax incentives for those who reuse the old buildings, his office announced Tuesday.
Citing Easton's Silk Mill as an example, Freeman said many old industrial buildings could be repurposed for retail, office, arts or housing space.
Breathing new life into the old buildings would also be a way to keep part of the community's heritage and identity, as many of the buidings have been around for more than 100 years, Freeman said.
The bill would create three types of tax incentive programs:
A 25% tax credit for the rehabilitation 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.
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 legislation, dubbed House Bill 653, was referred to the House Finance Committee.