(a) Establishment.--There is hereby established within the department a program providing for keystone opportunity expansion zones. A keystone opportunity expansion zone shall be comprised of deteriorated property and shall not exceed a total of 1,500 acres.

(b) Authorization.--The department shall authorize not more than 12 keystone opportunity expansion zones in this Commonwealth. Persons and businesses within an authorized keystone opportunity expansion 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 of ten or 13 years beginning January 1, 2001, and ending on December 31, 2010, or December 31, 2013.

(c) Expansion subzone designation.--The department may designate not more than eight expansion subzones in a keystone opportunity expansion zone. The total number of expansion subzone acres in a keystone opportunity expansion zone shall not exceed 1,500 acres in the aggregate.

(d) Authorization for local tax exemption.--Every political subdivision within which a proposed expansion 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 for a period ending December 31, 2010, or December 31, 2013. The exemption period shall be uniform within each expansion subzone. 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 an expansion subzone. The exemptions, deductions, abatements or credits shall be effective January 1, 2001, if designation of an expansion 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 expansion subzone designation.

(e) Authorization to enhance expansion subzones.--Unless as a result of a request the limitation on size established in subsection (a) would be exceeded, an expansion subzone may request to enhance its size. The request to enhance an expansion subzone must be made on a subzone-by-subzone basis. A qualified political subdivision which is seeking an expansion 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 on December 31, 2013. Copies of the ordinance, resolution or other action must be submitted to the department by May 1, 2004.