(a) Action of department.--The department, in consultation with the Department of Revenue, shall review all completed applications submitted under this act. An application for authorization as a keystone opportunity zone and designation of subzones must be received by the department on or before September 30, 1998, in order to be considered by the department. An application for authorization as a keystone opportunity expansion zone and designation of expansion subzones must be received by the department on or before February 28, 2001, in order to be considered by the department. An application for enhancement of a keystone opportunity zone or of a keystone opportunity expansion zone and designation of enhancements to subzones and to expansion subzones must be received by the department on or before June 1, 2004.

(b) Process.--The department shall authorize up to 12 keystone opportunity zones from applications meeting the criteria in section 304¹ based upon need and likelihood of success. The department shall authorize up to 12 keystone opportunity expansion zones from applications meeting the criteria in section 304 based upon need and likelihood of success. Additionally, the department shall not alter the geographic boundaries of a subzone or expansion subzone or the duration of a subzone or expansion subzone described in an application. The department shall authorize additional enhancements to keystone opportunity zones and keystone opportunity expansion zones from applications meeting the criteria in section 304 based upon need and likelihood of success as determined by the department.

(c) Authorizations.--The department shall authorize all keystone opportunity zones by November 30, 1998. The department shall authorize all keystone opportunity expansion zones by March 30, 2001. The department shall authorize all enhancements to keystone opportunity zones and keystone opportunity expansion zones by June 30, 2004.

(d) Effective date of designation.--The designation of a subzone under this act shall take effect on January 1, 1999. The designation of an expansion subzone under this act shall take effect on January 1, 2001. The designation of enhancements to subzones and expansion subzones under this act shall take effect January 1, 2004. The designation of an improvement subzone under this act shall take effect on the date the property is designated an improvement subzone.

(e) Extension.--The department may extend the deadline for the receipt of applications for keystone opportunity zones until December 31, 1998, if all 12 zones have not been authorized and the extension is necessary to allow eligible political subdivisions to apply. The department shall authorize additional keystone opportunity zones under this subsection by February 28, 1999. The authorization shall take effect January 1, 1999, or if the authorization occurs after January 1, 1999, that subsequent authorization shall for all purposes be retroactive to January 1, 1999. The keystone opportunity zone authorization shall end as provided in section 301(b).²