Proposed tax credit program could spur development at Pennsylvania airports

Planners at Arnold Palmer Regional Airport are looking to a future that could include businesses opening along the old runway.

Pennsylvania legislators are considering a new program that could help entice companies to move their operations to the airport in Unity or to any of 121 other airports across the state, including Pittsburgh International.

The Airport Land Development Zone (ALDZ) program is included in the recently passed Senate Bill 562, which is now before the House finance committee for review.

If passed into law, the program would provide tax credits to qualifying commercial or industrial employers who locate in an ALDZ and create new jobs.

“This legislation will be an important part of the airport moving forward in today’s environment,” said Gabe Monzo, executive director of the Westmoreland County Airport Authority, which operates the Arnold Palmer Airport. “It will be a benefit to the airport for development.”

Modeled after the existing Keystone Special Development Zone program, the ALDZ would provide participating businesses an annual tax credit of $2,100 over 10 years for each new job created.

Senate Majority Leader Kim Ward, R-Hempfield, was among those who voted for the bill. Airports accounted for 323,000 jobs and contributed $28.5 million to the Pennsylvania economy in 2019. During the covid-19 pandemic, the state’s airports have seen revenue drop by an estimated 57%, according to PennDOT.

“This commonsense legislation will help reverse this trend and puts us one step closer to getting our state’s economy back on track,” Ward said.

While businesses would enjoy tax credits, airports with ALDZs would have an additional drawing card for leasing space to them.

“Covid has taught us that you really need to diversify your revenue sources,” said David Heath of BBP Solutions, who assists the nonprofit Aviation Council of Pennsylvania with legislative and government affairs.

Heath noted the proposed ALDZ program has expanded. Initially limited to 22 commercial airports, those that see more than 2,500 passengers per year on scheduled flights, eligibility has been broadened to include all public-use airports in the state.

The various ALDZs would be capped at a combined total of 4,000 acres, evenly divided between commercial and noncommercial airports.

Each commercial airport could have a maximum of 300 acres designated as an ALDZ. The maximum for each noncommercial airport would be 50 acres.