Pennsylvania House Bill HB2127

Pennsylvania 2025-2026 Regular Session

• Introduced: 1/9/26
• Refer: 1/9/26

Caption

In waterfront development tax credit, further providing for waterfront development organizations, for waterfront development projects, for tax credit and for limitations.

Summary

HB2127 amends Pennsylvania’s waterfront development tax credit provisions in the Tax Reform Code of 1971. The bill changes the timing and administration of approvals for waterfront development organizations and projects by requiring the Department of Revenue to notify applicants within 60 days after submission or renewal, rather than using the prior wording tied more generally to application submission. It also allows project submissions to occur after approval of an organization’s application or at the same time as a renewal filing, which appears intended to streamline the application process. The bill also revises how tax credits are allocated and limited. Instead of distributing credits on a first-come, first-served basis, the department would award them according to criteria it publishes. The measure increases the maximum credit a business firm may receive from 75% to 90% of its contribution and raises the annual statewide cap from $5 million to $10 million. In addition, it limits the amount that may be reserved for future physical maintenance and operation of facilities to no more than 15% of contributions received under the program.

Impact

HB2127 would directly amend sections 1704-K, 1705-K, 1706-K, and 1708-K of the Tax Reform Code of 1971, affecting the administration of the waterfront development tax credit program. The Department of Revenue would gain clearer deadlines for reviewing organization and renewal applications and more discretion to use published criteria when awarding credits. Waterfront development organizations, project sponsors, and contributing business firms would be the primary affected parties, with the bill increasing the potential value and total availability of credits while tightening the rule on funds reserved for maintenance and operations.

Sentiment

Based on the bill text and the absence of recorded committee testimony or votes, the overall sentiment appears neutral to supportive of program expansion and administrative clarification. The bill’s sponsors are a group of House members, suggesting active legislative interest in strengthening the waterfront development tax credit. No opposition, amendments, or recorded roll-call votes are provided in the available context, so there is no documented public controversy in the materials supplied.

Contention

The main points of potential contention are the larger fiscal exposure created by doubling the annual tax credit cap and increasing the credit percentage from 75% to 90%, which could reduce state tax revenue. Another possible issue is the shift away from first-come, first-served allocation to department-published criteria, which may raise questions about transparency, fairness, and administrative discretion. Stakeholders likely to favor the bill include waterfront development organizations and project advocates, while budget-minded lawmakers or tax policy critics may object to the expanded cap and higher subsidy level.