(a) Establishment.--There is hereby established within the department a program providing for keystone opportunity zones. A keystone opportunity zone shall be comprised of deteriorated property and shall not exceed a total of 5,000 acres.

(b) Zone authorization.--The department shall authorize not more than 12 keystone opportunity zones in this Commonwealth. Persons and businesses within an authorized keystone opportunity zone that are qualified under this act shall be entitled to all tax exemptions, deductions, abatements or credits set forth in this act for a period not to exceed 15 years beginning January 1, 1999, and ending on or before December 31, 2013.

(c) Subzone designation.-- The department may designate not more than 12 subzones in each keystone opportunity zone. The total number of subzone acres in a keystone opportunity zone shall not exceed 5,000 acres in the aggregate.

(d) Authorization for local tax exemption.--Every political subdivision within which a proposed subzone is located, whether in whole or in part, is hereby authorized to provide tax exemptions, deductions, abatements or credits to persons and businesses qualified under this act. The political subdivision shall agree to provide exemptions, deductions, abatements or credits from all local taxes set forth in this act in order to qualify to be designated a subzone. Except as provided in section 303(e),¹ the exemptions, deductions, abatements or credits shall be effective January 1, 1999, if designation of a subzone within the political subdivision is granted by the department. The exemptions, deductions, abatements or credits shall be binding upon the political subdivision for the duration of the subzone designation.

(e) Authorization to extend the duration of a keystone opportunity zone or subzone.--A subzone of a keystone opportunity zone may request to extend its designation as a subzone for a period of three years. A subzone that is part of a keystone opportunity zone that will expire on December 31, 2008, may extend its designation as a subzone to December 31, 2010, or to December 31, 2013. The request to extend a subzone designation shall be made on a subzone-by-subzone basis. A qualified political subdivision having an approved subzone within its jurisdiction and seeking to extend the subzone designation shall pass the required ordinances, resolutions or other required action of the qualified political subdivision for the necessary exemptions, deductions, abatements or credits pursuant to this act for the period beginning after December 31, 2008, or December 31, 2010, as the case may be, and shall submit copies of the ordinance, resolution or other action to the department by June 30, 2001. The department may grant the request to extend provided all the proper binding ordinances, resolutions or other governing documents are passed by all qualified political subdivisions within the subzone extending the necessary exemptions, deductions, abatements and credits to the entire subzone to December 31, 2010, or December 31, 2013. The department shall approve or deny the request for extension of duration of a subzone by July 31, 2001, and shall provide written notice, irrespective of whether approved or denied, to each qualified political subdivision, resident and qualified business affected. Upon approval of a request for extension of duration of a subzone, the exemptions, deductions, abatements or credits shall be binding upon the qualified political subdivision as provided in subsection (d).

(f) Authorization to enhance subzones.--Unless as a result of a request the limitation on size established in subsection (a) would be exceeded, a subzone may request to enhance its size. The request to enhance a subzone must be made on a subzone-by-subzone basis. A qualified political subdivision which is seeking a subzone within its jurisdiction must pass the required ordinances, resolutions or other required action of the qualified political subdivision for the necessary exemptions, deductions, abatements or credits pursuant to this act for the period beginning on January 1, 2004, and ending on December 31, 2010, or December 31, 2013. Copies of the ordinance, resolution or other action must be submitted to the department by May 1, 2004.