Although this story focuses on the refineries in Marcus Hook, the Pileggi legislation is great news for Chester, depending on how you look at it.
The bill would allow the Department of Community and Economic Development to extend the tax benefits of locating a business in current Keystone Opportunity Zones, along with related areas known as Keystone Opportunity Expansion Zones and Keystone Opportunity Improvement Zones, by up to 10 years...
It’s good news because the old Keystone Opportunity Zone (KOZ) incentives were scheduled to expire in a couple years. Most companies would rather move into a KOZ at the beginning of the incentive period than the end. Now that we have a new 10 years of KOZ incentives, companies should be looking at Chester’s remaining KOZ parcels very favorably.
The bad news is that there are now new KOZ parcels just outside of Chester, so a business may look at one of the 15 new KOZ areas before looking at what’s remaining in Chester. Can and will Chester compete?
The unanswered question I have is whether extending the tax benefits 10 years applies to existing companies like Harrah’s and PPL Park who would have had their tax benefits end in a couple years, earning Chester a sizable increase in tax revenue. Will they now continue to get their existing tax incentives for 10 more years based on this new bill?
Who can answer that question for me?
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