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FOR IMMEDIATE RELEASE |
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State
Rep. Mike McGeehan |
  
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House passes McGeehan-amended opportunity zone bill
HARRISBURG, May 7 – In a solidly bipartisan vote, the state House today passed a bill designed to promote more redevelopment of former industrial land in Pennsylvania communities. The bill includes an amendment sponsored by Rep. Mike McGeehan, D-Phila., which would help ensure that Pennsylvania construction workers are used for such projects.
The bill (H.B. 2297) is one component of Gov. Ed Rendell's economic stimulus package. It would extend and expand the Keystone Opportunity Zone program, which allows tax abatements for redevelopment of specifically designated idle or abandoned properties. The KOZ program has been highly successful in creating and retaining thousands of jobs and generating billions of dollars in economic development opportunities. By a vote of 126-72, the House approved expanding the program and extending the abatement period for another seven years to stimulate development in existing KOZ districts.
By an identical 126-72 vote, McGeehan successfully inserted an amendment that would require KOZ construction projects pay their workers at prevailing wages, which are negotiated figures agreed to by construction businesses in the region.
"There have been numerous instances of KOZ construction projects where out-of-state contractors are brought in along with out-of-state workers who are paid less than Pennsylvania workers would be," said McGeehan. "These projects are being subsidized by taxpayers and are intended to benefit local economies, not contractors and fly-by-night workers from other states.
"The Keystone Opportunity Zone program has been extremely valuable in helping to get old industrial property back on the tax rolls and Pennsylvania building-trades workers applying their skills for fair wages. I hope the Senate acts promptly on this bill, including my amendment that would help make sure that local tax breaks help Pennsylvania workers and businesses."
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