On September 13, 2012, Philadelphia City Councilman W. Wilson Goode, Jr. introduced Bill No. 120651. If enacted, this Bill would significantly revise provisions of the Philadelphia Code relating to the 10-year real estate tax abatement for new development. The term of the exemption would be reduced to five years, starting with a 100% abatement in the first year, followed by a 20% reduction in each of the subsequent four years. The amendments apply to all new construction residential development as well as to abatements permitted for improvements to deteriorated industrial, commercial or other business properties. They do not affect provisions of the Code that provide a 10-year tax abatement for improvements to convert ­deteriorated industrial, commercial or other business properties to residential rental use. The amendments would be applicable to any application for abatement filed on or after January 1, 2014.

The Bill has been referred to the City Council Committee of the Whole but a hearing has not yet been scheduled.