Pennsylvania 2025-2026 Regular Session

Pennsylvania House Bill HB1874

Introduced
9/22/25  

Caption

In value capture approaches, further providing for creation of value capture area.

Impact

The implementation of HB 1874 would impact state laws surrounding urban development and financing. By establishing a clearer framework for value capture, the bill would enable local governments more effectively to fund essential infrastructure projects through the anticipated increases in property taxes within designated areas. This could lead to improved urban amenities and infrastructure, which in turn may accelerate further economic growth and development in both urban and suburban settings. However, the successful operation of value capture areas relies heavily on local governments’ ability to accurately project future property value increases, which presents a level of risk and uncertainty.

Summary

House Bill 1874 addresses the creation and management of value capture areas, which are designated zones where additional future tax revenues generated from increased property values can be allocated towards local improvements and infrastructure projects. This initiative is aimed at promoting economic development in growing urban areas by encouraging investments in public facilities and services necessary to support population growth and development. The bill seeks to clarify the procedures and guidelines for establishing these value capture areas, enhancing local government's capacity to leverage increased property taxes for community benefits.

Sentiment

The sentiment surrounding HB 1874 appears to be largely positive, especially among proponents who view it as a proactive approach to invigorating economic development through strategic urban planning. Supporters include city planners and local government officials who believe that the bill will enhance their ability to finance vital infrastructure projects without imposing additional taxes on residents. However, there are reservations expressed by some community advocacy groups concerned about potential unforeseen consequences, such as gentrification or displacement of current residents, which could arise from expansive development propelled by value capture financing.

Contention

Critical points of contention regarding HB 1874 involve concerns about how the establishment of value capture areas might operationalize in diverse communities. Opponents argue that without adequate regulations and oversight, these areas could prioritize profits from property development over the needs of existing residents, thereby exacerbating issues like affordability and equitable development. There is an ongoing dialogue about balancing the need for development with the necessity of protecting vulnerable communities that may be adversely affected by rapid changes in local economies. As such, further considerations regarding accountability and the equitable distribution of resources generated through value capture are seen as essential to the bill's success.

Companion Bills

No companion bills found.

Previously Filed As

PA HB1064

Further providing for definitions, for creation of tax increment districts and approval of project plans and for financing of project costs.

PA SB654

In sales and use tax, further providing for

PA HB2310

In emergency COVID-19 response, further

PA HB744

Further providing for definitions, for creation of program, for incubator grants, loans and loan guarantees and for responsibilities of local sponsors; repealing provisions relating to challenge grants for seed capital funds; further providing for general powers and duties of the board and for indicators of program impact; providing for funding sources; repealing provisions relating to time limit on approvals; and making a repeal.

PA HB2406

In city revitalization and improvement zones, further providing for definitions, for establishment or designation of contracting authority, for approval, for functions of contracting authorities, for qualified businesses, for funds, for reports, for calculation of baseline, for certification, for transfers, for restrictions and for transfer of property, providing for floating zones, further providing for Commonwealth pledges and for confidentiality, providing for operational funding and technical support and further providing for guidelines and for review.

PA HB1219

In personal income tax, further providing for classes of income and for special tax provisions for poverty and providing for alternative special tax provisions for poverty; in corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax, for consolidated reports and for manufacturing innovation and reinvestment deduction; in realty transfer tax, further providing for transfer of tax; in tax credit and tax benefit administration, further providing for definitions; in entertainment production tax credit, further providing for definitions, for credit for qualified film production expenses, for carryover, carryback and assignment of credit and for limitations; in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for biotechnology; in neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit; providing for expanded neighborhood improvement zones; in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for credit for child and dependent care employment-related expenses; providing for Public Transportation Trust Fund; and, in general provisions, further providing for underpayment of estimated tax, for method of filing and for allocation of tax credits.

PA HB782

In subdivision and land development, providing for potentially impacted municipalities and further providing for approval of plats and for completion of improvements or guarantee thereof prerequisite to final plat approval; providing for developments of regional significance and impact; and, in zoning hearing board and other administrative proceedings, further providing for jurisdiction.

PA HB1975

In zoning, further providing for classifications.

PA HB1300

In emergency COVID-19 response, providing for

PA HB1914

In sustainable mobility options, further providing for definitions, for fund, for application and approval process, for Federal funding, for coordination and consolidation, for operating program, for asset improvement program, for new initiatives program, for programs of Statewide significance and for program oversight and administration, providing for small purchase procedures and repealing provisions relating to evaluation of private investment opportunities.

Similar Bills

No similar bills found.