Philadelphia legislators approved changes to the 10-year tax abatement program and a new tax on residential construction on Thursday, sending the bills to Mayor Jim Kenneyâs desk.
The trio of tax bills are expected to raise revenues to back the issuance of a $400 million bond to fund an initiative supporting affordable housing, small businesses and commercial corridor revitalization. All three bills would go into effect in January 2022.
The Kenney administration has backed the legislative package.
A bill to cut the 10-year tax abatement for new commercial and industrial construction by 10% passed unanimously.
A second bill would levy a 1% construction tax on residential projects. The bill passed by a vote of 14-3, with Councilmembers Allen Domb, David Oh and Brian OâNeill voting against it.