Please ensure Javascript is enabled for purposes of website accessibility Committee approves Freeman bill to create factory/mill revitalization tax credit

Committee approves Freeman bill to create factory/mill revitalization tax credit

Rep. Robert L. Freeman    June 17, 2025 | 2:18 PM

HARRISBURG, June 17 – In a bipartisan vote, the state House Finance Committee today approved a bill authored by Rep. Robert Freeman that would create a state tax incentive to rehabilitate old factories or mills in Pennsylvania.

“Using a building such as a former factory or mill for a purpose other than what it was originally intended for is a way to reuse buildings that have stood in our communities for decades. Some of these buildings have witnessed the test of time for more than 100 years. They might be neglected, but they are still standing and lend themselves to adaptive reuse,” said Freeman, D-Northampton. “My proposal would establish a state tax incentive for the owners to rehabilitate factory or mill buildings to promote the redevelopment and reuse of vacant industrial buildings.”

House Bill 1575 would amend the PA Tax Reform Code to establish a tax incentive program for the rehabilitation or reconstruction of certifiable factory or mill complexes by providing a tax credit of up to 25% for the rehabilitation and reconstruction costs incurred by the owner.

“It is my hope that this financial incentive will encourage owners to breathe new life into these former industrial buildings, many of which have become a part of a community’s heritage and identity. Repurposing an old factory or mill for retail, office or arts space, or transforming them into dwellings, encourages economic development and improves the quality of life of a community,” Freeman said.

The bill would provide up to $15 million in tax credits to be used for the rehabilitation and renovation of factory or mill projects across Pennsylvania with individual program eligible buildings limited to a maximum of $1.5 million in tax credits.

The legislation moves to the full House of Representatives for consideration.