Philly changes tax abatement program for new homes

PHILADELPHIA (WPVI) -- The City of Philadelphia is changing the tax abatement program for new homes built in the city.

Currently, homeowners are exempt from most property taxes for a decade.

Now, the abatement will drop by 10 percent each year, starting at 100 percent the first year, then 90 percent the next year, and so on.

City Council estimates the change would generate an additional $275 million in tax revenue, with half going to schools.

The change takes effect on the last day of next year.