Pennsylvania House Bill HB177

Pennsylvania 2025-2026 Regular Session

• Introduced: 3/10/25
• Refer: 3/10/25

Caption

Providing for the creation of keystone opportunity dairy zones to facilitate the economic development of Pennsylvania's dairy industry; authorizing expenditures; providing for tax exemptions, tax deductions, tax abatements and tax credits; creating additional obligations of the Commonwealth and local governmental units; prescribing powers and duties of certain State and local departments, agencies and officials; and imposing penalties.

Impact

If enacted, HB 177 will create defined geographic areas where businesses involved in dairy processing can operate under favorable tax conditions. Businesses that qualify must engage in the processing of Pennsylvania milk and adhere to specific requirements, such as creating jobs and making significant investments. This approach is expected to lead to increased dairy processing capacity, enhancing market competition and potentially boosting job creation within the local economies of the defined zones. The local and state governments will also have responsibilities in facilitating these zones' emergence and success.

Summary

House Bill 177, known as the Keystone Opportunity Dairy Zone Act, aims to establish designated areas that facilitate the growth and economic development of Pennsylvania's dairy industry. The bill provides mechanisms for creating Keystone Opportunity Dairy Zones which would benefit from various tax exemptions and credits aimed specifically at bolstering the dairy sector. The proposed legislation addresses the urgent need for economic support within the industry, recognizing the crucial role dairy farmers play in Pennsylvania's agricultural heritage and economy.

Sentiment

The sentiment surrounding HB 177 appears generally supportive among stakeholders focused on the agricultural sector, particularly those advocating for the dairy industry. Proponents argue that the bill will revitalize local economies, enhance job prospects, and preserve the agricultural landscape of Pennsylvania. However, some concerns have been raised regarding the potential implications for local governance and control, as municipalities will need to accept the terms of the tax exemptions, which could limit local fiscal authority. This has created a nuanced debate between state-level economic initiatives and local autonomy.

Contention

Notable points of contention include the potential financial implications for local governments that might rely on tax revenues from properties within established Keystone Opportunity Dairy Zones. While proponents emphasize the economic opportunity presented by bolstering dairy operations, critics worry that the long-term benefits may not outweigh the immediate fiscal losses from tax exemptions. The debate is highlighted by differing views on the role of state versus local control in economic development, with some calling for more stringent oversight to ensure that community needs are met.