Pennsylvania Budget Prioritizes Economic Development and Small Businesses
In a significant move towards bolstering economic competitiveness, Pennsylvania Governor Josh Shapiro has signed a bipartisan budget that allocates historic funding to community and economic development initiatives this month. The budget details a comprehensive strategy aimed at enhancing the state’s economic landscape through various substantial investments.
A notable allocation of $500 million has been earmarked for site development, with a substantial $400 million directed towards the PA SITES program. This initiative is designed to increase the availability of industrial sites, positioning Pennsylvania as an attractive destination for business expansion and investment.
Further supporting the backbone of local economies, the budget provides $20 million for the Main Street Matters program. This initiative focuses on aiding small businesses and enhancing commercial corridors, ensuring they remain vibrant and economically viable. Additionally, another $20 million has been dedicated to the Historically Disadvantaged Business program, which specifically targets support for small, minority-owned businesses.
The tourism sector, a critical driver of economic activity, is also set to benefit from a $15 million investment aimed at business marketing to stimulate growth and attract visitors.
In an effort to further support community development, the Neighborhood Assistance Program (NAP) has seen its funding double, with tax credits increasing from $36 million to $72 million. The program is scheduled to accept a second round of applications from September 9 through October 25, 2024, reflecting an ongoing commitment to revitalizing neighborhoods and fostering economic development.
The budget also introduces significant tax reforms to create a more business-friendly environment in Pennsylvania. These include reductions in business taxes and a steady reduction of the Corporate Net Income Tax (CNIT) to 4.99% by 2031. Additionally, the budget expands the net operating loss deduction, a change that will particularly benefit startups and businesses with fluctuating revenues.
A newly launched program, Streamlining Permits for Expansion and Economic Development (SPEED), aims to expedite the permit review process by the PA Department of Environmental Protection (DEP). This initiative is expected to facilitate quicker responses for businesses seeking to advance their projects, thus speeding up the economic development process.