§ 19-3204. Conditions for Exemptions, Abatements and Credits. 635

   (1)   Qualifications. 636

      (a)   Other than in the Philadelphia Strategic Development Area: In order to qualify each year for a tax exemption, abatement or credit under this Chapter, a business shall own or lease real property in the Zone from which the business actively conducts a trade, profession or business. The qualified business shall receive certification from DCED that the business is located, and is in the active conduct of a trade, profession or business, within the Zone. The business shall obtain annual renewal of the certification from DCED to continue to qualify under this Section. A copy of the certification shall accompany the filing of any return or other required application with the City in order for the qualified business to obtain any tax exemption, abatement or credit provided under this Chapter.

      (b)   In the Philadelphia Strategic Development Area: In order to qualify for tax exemptions, deductions, abatements or credits under this article, a business must own or lease real property in a strategic development area on which the business actively conducts a trade, profession or business involving energy, bioscience or manufacturing, or a related activity, and meet one of the following criteria:

         (.1)   Create or maintain a minimum of 500 jobs within the first three years of full operation within the strategic development area.

         (.2)   Invest a minimum of forty-five million dollars ($45,000,000) in capital investment in the property located in the strategic development area within the first three years of full operation.

   (2)   Approval by DCED. Any taxpayer claiming an exemption, abatement or credit under this Chapter must, by December 31 of each year for which the exemption, abatement or credit is claimed, apply for and receive approval from DCED of eligibility for the benefit, as set forth in Sections 906 and 907 of the Act, as amended, or Section 906 of the EDD Act, as applicable. In the Philadelphia Strategic Development Area, a copy of the approval shall accompany the filing of any return or other required application with the City in order for the qualified business to obtain any tax exemption, abatement or credit provided under this Chapter. 637

   (3)   Relocation.

      (a)   Any business that relocates into the Zone, other than into the Economic Development District or into the Philadelphia Strategic Development Area, from outside the Zone shall not receive any of the exemptions, abatements or credits set forth in this Chapter unless that business either: 638

         (.1)   Increases full-time employment by at least twenty percent (20%) in the first full year of operation within the Zone; or

         (.2)   Makes a capital investment in the property located within the Zone equivalent to ten percent (10%) of the gross revenues of that business in the immediately preceding calendar or fiscal year.

      (b)   Any business that relocates into the Economic Development District from outside the Economic Development District shall not receive any of the exemptions, abatements or credits set forth in this Chapter unless that business has entered into a lease agreement for property located within the Economic Development District consistent with all of the following:

         (.1)   The net present value of the lease agreement is at least fifty million dollars ($50,000,000).

         (.2)   The lease agreement is for at least 500,000 square feet of property.

         (.3)   The term of the lease agreement is at least equivalent to the balance of the duration of the designation of the property as an economic development district.

         (.4)   Aggregate payments under the lease agreement to support new capital investment is at least equivalent to five percent (5%) of the gross revenues of the business in the immediately preceding calendar or fiscal year.

         (.5)   The property will be used for food distribution.

         (.6)   The property consists of at least 85 acres.

         (.7)   The property is publicly owned.

      (c)   The Department may promulgate regulations establishing rules regarding the determination of whether a business is subject to these relocation rules, including rules concerning businesses that change their form of doing business in order to avoid these relocation rules, and rules concerning businesses that cease operations outside the Zone after commencement of operations inside the Zone.

   (4)   No abatement or exemption shall be available under Section 19-1303.3 of this Code, relating to Exemptions from Real Estate Taxes on Improvements to Deteriorated Industrial, Commercial or Other Business Properties, with respect to any real property or improvements in the Economic Development District until calendar year 2019. Any period remaining in an abatement or exemption period that otherwise would have been available but for this subsection shall be available to the taxpayer commencing on January 1, 2019, provided that no abatement, credit or exemption shall be available for any years that would have been subject to abatement but for this subsection. No exemption, abatement or credit shall be taken under this Chapter with respect to any property or business activity in the Economic Development District unless the taxpayer shall have first submitted to the Board of Revision of Taxes, with a copy to the Department, a binding acknowledgement that acceptance of any exemption, abatement or credit under this Chapter shall constitute an irrevocable abandonment of any claim to an abatement of real property taxes under Section 19-1303.3 of this Code beyond that provided in this subsection; provided further that such acknowledgement shall be filed with the Recorder of Deeds and shall be binding on successor owners.

   (5)   Opportunity Plans. 639 To qualify for tax exemptions, abatements or credits under this Chapter, a business shall agree to the terms and conditions of an Opportunity Plan, as defined in the Koz Act (73 P.S. § 820.103), and which meets the requirements of the Koz Act (73 P.S. § 820.302(a)). The Opportunity Plan shall at a minimum, require:

      (a)   Bid and RFP specifications for design and construction services in the zone, include a provision requiring professional service providers and construction contractors to indicate their capacity to sponsor apprenticeship opportunities for students enrolled in School District Career and Technical Education Programs;

      (b)   Owner-operators of businesses in the zone, agree to provide internships to students enrolled in School District Career and Technical Education Programs; and

      (c)   Solicitations for tenants to operate a business in the zone, include a provision requiring tenant- operators to indicate their capacity to sponsor internship, training and permanent employment opportunities for students enrolled in School District Career and Technical Education Programs.

 

Notes

635	Caption amended, Bill No. 010092 (approved February 28, 2001). Amended, Bill No. 050504-A (approved July 8, 2005). See note 571 for effective date provisions.
636	Amended, Bill No. 071081 (approved December 21, 2007). See note 590 for effective date provisions.
637	Added and subsection (3) renumbered, Bill No. 010092 (approved February 28, 2001); amended, Bill No. 071081 (approved December 21, 2007). See note 590 for effective date provisions.
638	Amended, Bill No. 071081 (approved December 21, 2007). See note 590 for effective date provisions.
639	Added, Bill No. 180935 (became law January 24, 2019).