State Senators Doug Mastriano (R-33) and David Argall (R-29) are planning to introduce a bill that would create dairy “opportunity zones” throughout the state, offering tax breaks and other benefits to participants who follow government regulations.
In a Senate memorandum released Thursday, Mastriano and Argall said the government program would help bring more dairy processing facilities to the state and expand markets for milk from Pennsylvania farms.
“Pennsylvania is second only to Wisconsin for most dairy farms in the entire nation,” the memorandum said. “Despite the high number of farms, PA is only eighth when it comes to dairy production. Our farmers have plenty of milk to bring to market, but our commonwealth lacks the facilities needed to produce additional varieties of milk products that cater to evolving consumer trends.”
The proposed legislation would create up to 20 Keystone Opportunity Dairy Zones (KODZ) throughout the state that would provide tax exemptions, deductions, abatements, and/or credits for a period of up to 10 years for new dairy processing facilities using Pennsylvania milk.
In order to qualify for the government program, qualified milk processing facilities would be required to invest private capital, create new jobs, and utilize Pennsylvania milk from Pennsylvania farms.
In the memo, the Republican legislators claimed the creation of the government program would help “transform Pennsylvania into a dairy producing powerhouse.”
