Pa. House passes bill to create jobs, stimulate economy
The Pennsylvania House of Representatives has passed legislation aimed at creating jobs and stimulating the commonwealth’s economy.
House Bill 2358, sponsored by Rep. Jim Prokopiak, D-Bucks, increases the Historic Preservation Tax Credit, and would raise the annual limit of the Historic Preservation Tax Credit from $5 million to $20 million beginning in 2025.
The bill now heads to the state Senate for consideration.
“Pennsylvania’s Historic Preservation Tax Credit Program not only helps rehabilitate and preserve the structures that tell the tale of our commonwealth’s rich history, but it also generates positive economic impact by helping turn those structures into income-producing properties,” Prokopiak said in a statement.
According to the bill’s co-sponsorship memo, every $1 million invested into an historic rehabilitation project generates 6.4 direct jobs and 5.6 indirect jobs in Pennsylvania, which outperforms every other industry.
Of the 37 states owning a similar tax credit, Pennsylvania has the fourth-lowest cap. Prokopiak said that the increased investment proposed in H.B. 2358 is necessary since the need for funding is greater than the current $5 million cap.
“Unfortunately, the demand for this tax credit far outpaces the available funds,” said Prokopiak.
During the 2022-23 fiscal year, 31 projects requesting $12.7 million in tax credits were forwarded to the Pennsylvania Historical and Museum Commission for approval of the projects’ rehabilitation plan. With the annual program cap set at $5 million, 22 of those projects were awarded credits, using 100% of the total amount available.
“I believe it is time to allow more deserving projects to receive this tax credit,” Prokopiak said, adding that preserving more of Pennsylvania’s architecture and history will generate jobs and economic investment.