Some companies may qualify for the following programs offered by the Commonwealth of Pennsylvania to provide grants, tax credits, or job training funds for business expansion, relocation, or retention projects:
New Job Creation Tax Credit
The NJCTC provides a $1,000 tax credit to approved businesses that agree to create or retain new jobs in the Commonwealth. A business must agree to create a minimum of 25 new jobs or new jobs equaling at least 20% of its existing work force within three years. The tax credit cannot be used until the jobs are actually created.
WEDnet Job Training Program
WEDnetPA is a program offered by Pennsylvania to strengthen an already healthy and supportive business environment here in the Commonwealth. We reward in-state businesses that show solid growth and out-of-state companies that decide to relocate to the economic-friendly business climate of Pennsylvania. Qualified companies receive free job training, which is provided through the Workforce and Economic Development Network of Pennsylvania, known as WEDnetPA. This alliance of 14 State System universities, Pennsylvania's 14 community colleges provides a diverse array of training that employers need most. Through the Guaranteed Free Training Program, you can access funding for a wide range of Basic Skills Training and Information Technology Training that will put your employees on the path to peak performance. The mission of WEDnetPA is to strengthen the business environment of the Commonwealth of Pennsylvania by providing a training network that is responsive to employers' workforce development needs.
Infrastructure Development Program (IDP)
The IDP program provides grants and loans for infrastructure construction and rehabilitation which is necessary to complement capital investment by private companies and private developers. Grants must be used for eligible public-owned infrastructure improvements that are accessible to more than one user. Individual loans may be used for eligible privately-owned infrastructure improvements. The maximum grant or loan amount is $1,250,000.
Other programs are available to companies in specific geographically-defined areas, such as LERTA districts, Keystone Opportunity Zones, or the Enterprise Zone of Bucks County:
LERTA Property Tax Abatement Program
The Local Economic Revitalization Tax Assistance (LERTA) Program provides a graduated abatement on real estate taxes for companies that make improvements to property within the LERTA district. As an example of a typical LERTA project, a building is built on a vacant parcel of ground (which has a baseline tax assessment of "X"). As a result of the improvements, the real estate tax assessment on the parcel of ground will now include the new building, and the assessment is increased from "X" to "Y". The LERTA program provides an abatement on the difference between "X" and "Y" over a period of 5 - 10 years. At the end of the abatement period, the property owner pays the full amount of taxes due on the improved property.
Keystone Opportunity Zone (KOZ) Program
Keystone Opportunity Zones (KOZ) and Keystone Opportunity Expansion Zones (KOEZ) are geographic areas; that are established by parcel numbers with greatly reduced state and local taxes. KOZs reflect a true sense of partnership among state and local taxing bodies, school districts; economic development agencies and community-based organizations in eliminating specific state and local taxes within specific underdeveloped and underutilized areas, communities within Pennsylvania are experiencing economic growth and investment.
The tax liability binding ordinances and resolutions were passed granting the waiver, abatement or exemption of certain state and local taxes. Depending on the situation, the tax burden maybe reduced to zero through exemptions, deductions, abatements and credits for the following:
- State Taxes: Corporate Net Income Taxes, Capital Stock Foreign Franchise Tax, Personal Income Tax, Sales Use Tax, Bank Shares and Trust Company Shares Tax, Alternative Bank and Trust Company Shares Tax, Mutual Thrift Institutions Tax, Insurance Premiums Tax
- Local Taxes: Earned Income/Net Profits Tax, Business Gross Receipts, Business Occupancy, Business Privilege and Mercantile Taxes, Local Real Property Tax, Sales and Use Tax
In Bucks County
The tax benefits available under KOZ and KOEZ program were available as of January 1, 1999; January 1, 2010 and August 31, 2012 respectfully, and may be available through December 31, 2019 and December 31, 2022 depending on the expiration date that was imposed by the KOZ Subzone or KOEZ Expansion Subzone. The goal of the KOZ/KOEZ is to revive economically distressed urban and rural communities with one of the most powerful market-based incentives eliminating taxes.
Bucks County has three areas with KOZ or KOEZ status. Contact BCEDC for more details on the availability of these sites in Bucks County.
Enterprise Zone Tax Credit Program
The Enterprise Zone Tax Credit is competitively awarded by the Commonwealth of Pennsylvania. Eligible companies are businesses located in the state- and locally-designated Enterprise Zone, which make improvements to real property with the Zone. The Commonwealth may award up to $250,000 of tax credits per project, per company, per year. Credits are used to offset the company's Pennsylvania tax liability. Applications to the Commonwealth for this program are administered by the Enterprise Zone Coordinator, within the County's Redevelopment Authority.