It is part of a larger economic development and revitalization effort on behalf of older cities and towns. Designated Bill 952, it seeks preservation not just for preservation's sake, but also as a strategy for drawing businesses and residents back to downtown areas that have been losing residents, businesses and their tax base.
The legislation, introduced by Rep. Don Frankel, provides a 20% state income tax credit to owners that buy, restore and do business in historic commercial buildings and a 20% tax credit on eligible redevelopment costs. It also exempts the state's share of the realty transfer tax for a seller that agrees to sell an historic property to a buyer that agrees to restore it. In addition, it waives the state sales tax on material used in the restoration of such properties.
In order to reap the greatest economic impact for the state, the tax credits for commercial preservation would be offered on a competitive basis.
Frankel says, "there are wonderfully unique buildings already in place in Pennsylvania that could be restored and used for businesses...(helping) to restore some of the charm and unique character of our older communities while returning the economic vitality that slowly has been draining through the exit of people and businesses."
The bill now moves to the Senate with widespread support from architects, municipal commissioners and preservationists.
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