Pittsburgh City Councilman Bill Peduto today introduced legislation that aims to stimulate development with a modified tax abatement program.
The bill, which he's calling the Pittsburgh Stimulus Plan, would provide incentives to developers who apply for the benefits from Jan. 1, 2012, through Dec. 31, 2014.
The legislation would give all new commercial and industrial projects a break on city property taxes for 10 years.
Developers would get a 100 percent tax break for the first two years. After that, the tax break would decline by 10 percent every two years, concluding with a 60 percent tax break in years nine and 10. There would be no annual cap on the tax savings.
Under the city's current program, commercial and industrial projects get a 100 percent break on city property taxes for five years. There is a $50,000 cap on annual savings.
Mr. Peduto's legislation also would extend the 10-year graduated abatement schedule to residential projects, with no cap on annual savings.
Currently, big residential developments receive a 100 percent tax break for 10 years, with a $150,000 annual cap on savings. Smaller residential projects receive a 100 percent abatement for 10 years, with a $2,700 annual cap on savings. The application period for those programs expires June 30, 2012.
Joe Smydo: email@example.com or 412-263-1548.