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Pennsylvania House Bill 177 establishes Keystone Opportunity Dairy Zones to provide tax exemptions for dairy processors

Original title: An Act 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.

Last action · March 10, 2025: Referred to AGRICULTURE AND RURAL AFFAIRS, March 10, 2025Sponsors: John Lawrence and 10 others

Introduced
Committee
Floor Vote
Passed
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What This Bill Would Do

House Bill 177 authorizes the creation of up to 30 Keystone Opportunity Dairy Zones across Pennsylvania to support the dairy industry through state and local tax exemptions, deductions, abatements, and credits for up to 10 years. Qualified dairy processing businesses and resident workers within these zones must meet specific job creation, capital investment, and compliance standards to receive tax relief. The legislation takes effect immediately upon enactment.

Why it matters

Dairy processors and agricultural landowners located within designated zones will pay zero real property taxes and receive credits against state corporate net income, personal income, and sales and use taxes, while local governments and school districts must forgo property and local business tax revenues on those parcels.

Background
  • Pennsylvania has a long-standing agricultural tradition and ranks as a prominent producer of milk and dairy products in the United States. context
  • Keystone Opportunity Zones are an established Pennsylvania economic development program offering state and local tax relief to designated distressed or developing properties. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

Dairy farmers

Dairy farmers benefit from coordinated economic development efforts intended to ensure the long-term viability and continuation of the state's dairy market.

Directly affected

Qualified businesses

Dairy processing businesses located within authorized zones receive exemptions from corporate net income tax, sales and use tax, and local business privilege taxes.

Directly affected

Zone residents

Residents domiciled within a zone receive exemptions from personal income tax on compensation, net gains, rents, dividends, and interest.

Directly affected

Political subdivisions

Counties, cities, boroughs, townships, and school districts within a zone are required to provide 100% real property tax abatements and local tax exemptions.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What qualifies a business as a small-scale dairy processing facility under this bill?
A small-scale dairy processing facility must exclusively utilize Pennsylvania milk produced from a single farm or a combination of farms with a total collective average herd size of 250 milking cows or fewer, and be primarily involved in processing raw milk into dairy products for wholesale or retail.
How long do the tax benefits in a keystone opportunity dairy zone last?
Tax exemptions, deductions, abatements, and credits are granted for a period not to exceed 10 years, beginning between one and three years from the effective date of the subsection, with a potential three-year extension available upon approval.
What happens if a qualified business leaves the zone early?
If a qualified business relocates outside of the zone within the first five years, it must refund 66% of all tax benefits received. If it relocates within five to nine years, it must refund 33% of the benefits.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

1 action
  1. Mar 10, 2025HouseCommittee
    Referred to AGRICULTURE AND RURAL AFFAIRS, March 10, 2025

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Targeted Agricultural Enterprise Zones

The bill adapts traditional geographic tax-abatement frameworks specifically tailored for the dairy processing and farming sector.

Connected Entities

State Tax Equalization Board, Department of Revenue, Department of Community and Economic Development and 2 more
OrganizationState Tax Equalization Board“Board responsible for calculating market values of real property for school dist”Map →
OrganizationDepartment of Revenue“State department responsible for administering tax provisions and penalties unde”Map →
OrganizationDepartment of Community and Economic Development“State department responsible for designating and administering keystone opportun”Map →
OrganizationPennsylvania Milk Board“State board responsible for certifying raw milk produced within Pennsylvania”Map →
PersonJohn Lawrence“Primary sponsor of House Bill 177, representing District 13”Map →

Sources

Open source document

www.palegis.us

Analysis Score

0–100
  • Significance75
    How much this matters to a regular citizen
  • Controversy25
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz30
    Current news / social attention level

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