HARRISBURG, PA — State Senator Wayne Fontana announced Tuesday his intention to introduce a bill that will encourage more building construction, improvements, and conversions in local communities. The proposed legislation aims to do this by extending the period municipalities can grant tax abatement from 10 to 20 years.
Fontana’s proposal comes as many communities grapple with challenging budgets in the coming years. “Harrisburg can and should provide the tools local governments need to spur impactful redevelopment and investment, all without raising taxes,” said Sen. Fontana.
The bill would amend the Local Economic Revitalization Tax Assistance Act (LERTA), a law passed in 1977. LERTA was designed to stimulate economic development by granting property tax breaks on the assessed value of improvements made to existing buildings or land. However, the 10-year limit on these tax abatements has not been revised in the 47 years since the law was enacted.
Sen. Fontana believes that extending the time period for tax abatement under LERTA would give the act more potency in the present day. “The LERTA program continues to spur development across the commonwealth, as it has over the last four decades. My bill takes a successful program and supercharges it to help address our current needs,” he said.
If passed, Fontana’s bill could significantly incentivize local development and help economically strained communities. It would give municipalities a longer timeframe to attract and support projects that can revitalize their areas without putting additional tax burdens on residents.
Its potential implications are far-reaching. By providing a more substantial incentive for developers, the extended tax abatement period could stimulate economic growth, create jobs, and lead to improved infrastructure and services in many Pennsylvania communities. As such, this proposed legislation will be watched closely by constituents and local governments alike.
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