State Sen. Devlin Robinson (R-37) released a co-sponsorship memo May 23 seeking support for legislation he plans to introduce that would update and expand the existing Pennsylvania Waterfront Development Tax Credit (WDTC) Program, which he says is an essential tool that helps communities fulfill the potential of their waterways.
“The tax credit is currently 75 percent and capped at $5 million statewide,” Robinson writes in the circulating memo. “My legislation would increase the percentage to 90 percent and the annual cap to $10 million, which will elevate the program to an equal competitive footing with other key Pennsylvania tax credit programs.”
Established by the Pennsylvania General Assembly with bipartisan support, the WDTC Program encourages private investment in waterfront property that creates public access to the water, increases property values, restores ecology, and creates jobs and economic growth, according to Robinson.
Many municipalities, both urban and rural, are located on rivers, lakes, creeks, and other waterfronts across the state, offering opportunities for economic development and public recreation that contribute to the livelihood of the municipality and the surrounding area, as well as to the quality of life of residents and visitors, the memo says.
“However, these areas often require significant investment to redevelop due to barriers including abandoned industrial uses and contamination,” according to the lawmaker. “Despite the desire to enhance waterfront areas, access to sufficient funding presents a formidable obstacle.”
The WDTC is available to individuals and/or businesses who contribute to certified nonprofit waterfront development organizations. Both the organizations and the projects require approval by the state’s Department of Community and Economic Development prior to participation in the tax credit program.
Contributions are used for specific waterfront development projects, such as streets and public rights-of-way; waterfront parks, gardens, and open spaces; access to public utilities, erosion control, stormwater management, and other environmental projects which promote economic development; water transportation facilities for use by the public, including water transit landings and boat docking; and amenities, including infrastructure and recreational projects.
“This tax credit program is a proven public/private partnership, and I hope to expand it so more development can occur along our waterways across our commonwealth,” Robinson said. “Please join me in sponsoring this update and expansion of the existing Waterfront Development Tax Credit Program.”
Text of the proposed bill had not been released as of May 27.