Pennsylvania Senate Bill SB384

Pennsylvania 2025-2026 Regular Session

• Introduced: 3/17/25
• Refer: 3/17/25

Caption

Providing for the creation of keystone opportunity dairy zones to facilitate the economic development of Pennsylvania's dairy industry; authorizing expenditures; providing 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

The proposed legislation outlines the creation of up to 30 designated zones with specific requirements notably for Class A and Class B zones. These include substantial private investment levels and the creation of new jobs, which are expected to enhance local economies significantly. The bill emphasizes local governments' roles in administering these zones and requires compliance with various tax laws and agricultural standards to qualify for benefits, suggesting a coordinated effort between state and local entities to bolster the dairy sector.

Summary

Senate Bill 384, known as the Keystone Opportunity Dairy Zone Act, aims to boost Pennsylvania's dairy sector by establishing Keystone Opportunity Dairy Zones. These designated areas will facilitate economic development specifically for the dairy industry, providing a variety of tax incentives including exemptions, deductions, abatements, and credits. The bill's objective is to stimulate investment in dairy processing facilities, which are critical for the state's agricultural economy and provide local employment opportunities.

Sentiment

The sentiment surrounding SB 384 appears generally supportive, particularly among stakeholders in the agricultural and dairy processing sectors. Advocates argue that the bill represents a necessary step to ensure the sustainability and growth of Pennsylvania's dairy farming community. However, there could be concerns regarding the long-term effectiveness of such tax incentives and the administrative burdens it may place on local governments.

Contention

Notably, one area of contention may arise from the potential disparities in how benefits are distributed among different regions and types of dairy operations. Questions regarding the accountability measures in place for monitoring the effectiveness of designated zones will be important. The bill also carries implications for local jurisdictions that might have to realign their tax codes and administration practices to support the proposed changes. Ensuring that the initiative leads to real benefits without undermining the current local government structures is a critical consideration.