Pennsylvania Economic Development Directory

Pennsylvania State Incentives

DISCOVERED AND DEVELOPED IN PA PROGRAM (D2PA): Grant established to build capacity to better support Pennsylvania businesses and to spur creativity and innovation in the provision of economic development services. Eligible uses include: Reasonable salary/personnel expenses; Consultant fees relating to approved programmatic activities; land/building/equipment improvements; Meeting/travel expenses; Costs associated with preparation and publishing of educational/marketing materials. Eligible applicants are private and public sector entities whose mission includes economic development. Competitive projects will include ongoing or innovative new activities, programs or events to promote entrepreneurship, encourage technology transfer, improve capacity building for regional economic development or provide outreach to businesses.

PENNSYLVANIA FIRST: A grant, loan, loan-guarantee funding tool to facilitate increased investment and job creation within the Commonwealth. Eligible applicants include businesses, or IDCs, municipalities or authorities on behalf of businesses, which will create or preserve a significant number of jobs, make a large investment and offer substantial economic impact, either for the Commonwealth as a whole or for the locality or region in which a business will locate or expand. Funds can be used for machinery/equipment; job training; infrastructure; land and building improvements; environmental assessment/remediation; acquisition of land, buildings and right-of-ways; working capital; site preparation, demolition and clearance.

KEYSTONE INNOVATION ZONE TAX CREDIT PROGRAM: Provides tax credits to for-profit companies less than eight years old operating within specific targeted industries within the boundaries of a Keystone Innovation Zone (KIZ) Program. Tax credits must be applied against the tax liability of a KIZ company for the tax year in which the KIZ Tax Credit was issued. A KIZ company may claim a tax credit equal to 50 percent of the increase in that KIZ Company’s gross revenues in the immediately preceding taxable year attributable to activities in the KIZ, over the KIZ Company’s gross revenues in the second preceding taxable year attributable to its activities in the KIZ. The KIZ Tax Credit is limited to $100,000 annually per KIZ company. Applications must be submitted on or before September 15 of each year.

ALTERNATIVE & CLEAN ENERGY PROGRAM: Administered jointly by the Dept. of Community and Economic Development (DCED) and the Dept. of Environmental Protection (DEP), under the direction of the Commonwealth Financing Authority, it provides financial assistance in the form of grant and loan funds that will be used by eligible applicants for the utilization, development and construction of alternative and clean energy projects in the Commonwealth.

• Loans for manufacturers of alternative and/or clean energy generation equipment or components shall not exceed $35,000 for every new job created within three years after approval of the loan. Loans for any alternative energy production or clean energy project shall not exceed $5 million or 50 percent of the total project cost, whichever is less.
• Grants for manufacturers of alternative and/or clean energy generation equipment or components shall not exceed $10,000 for every job projected to be created by the business within three years after approval of the grant. Grants for any alternative energy production or clean energy project shall not exceed $2 million or 50 percent of the total project cost, whichever is less.

BEN FRANKLIN TECHNOLOGY DEVELOPMENT AUTHORITY (BFTDA):

• BFTDA VENTURE INVESTMENT PROGRAM: Investment in venture capital partnerships investing in early-stage PA technology companies. Venture capital partnerships and angel investment groups are eligible. Funding is variable.
• BFTDA TECHNOLOGY DEVELOPMENT GRANT: Grants to help groups or consortia of Pennsylvania companies position themselves at the cutting edge of emerging technologies and establish a competitive advantage through the use of advanced e-business systems. Not-for-profit organizations and Community groups are eligible. Funding is variable.
• BFTDA ALTERNATIVE ENERGY DEVELOPMENT PROGRAM (AEDP): Provides funds to businesses through the four Ben Franklin Technology Partners for access to capital, business expertise, technology commercialization services to advance the development of new technologies and for the generation, conservation and transportation of alternative and clean energy. The BFTDA Centers receive funding to award to entrepreneurs, start-up & early-stage companies, established companies, investors, higher education & research and BFTP alumni companies.

BUILDING PA: Provides $150 million in funding for the development of real estate assets within the Commonwealth to be matched by private investors and foundations looking to facilitate projects within the Commonwealth. The resulting $300 million fund will provide mezzanine capital for developers seeking to redevelop and revitalize real estate assets in small to mid-sized PA communities. By creating a public/private partnership, this $300 million account will allow Pennsylvania to stimulate the marketplace, and close more deals. The goal is to encourage the undertaking of more projects, while creating a fund that will sustain itself for years to come.

BUSINESS IN OUR SITES GRANTS & LOANS: A $300 million statewide loan and grant pool, created by the issuance of bonds. This money will be made available to communities statewide to help them develop shovel-ready sites to accommodate expanding businesses, thus building the local and regional economy and ultimately creating jobs. Emphasis will be given to communities that lack the resources necessary to invest in site preparation. Funds may be used to acquire land, conduct environmental assessment and remediation and perform demolition. The funds may also be used for site preparation activities and installation of infrastructure, including but not limited to, sewer, water, storm water, utilities and telecommunications, both on site and as needed to bring service to the site. They may also be used for access roads or other necessary on-site and off-site transportation improvements. These include rail, costs associated with engineering, legal and other professional services; and any other activities necessary to make a specific site ready for reuse.

BUSINESS OPPORTUNITIES FUND (BOF): Installment loans, lines of credit and technical assistance for minority business enterprises, women-owned business enterprises and small businesses. There are no minimum or maximum loan sizes and funds may be used for cash flow (working capital), equipment, leasehold improvements and acquisition of owner-occupied real estate.

COMMUNITY ECONOMIC DEVELOPMENT LOAN PROGRAM: Low-interest loans for projects in distressed communities. Loans are available up to $100,000 or 50 percent of total eligible project cost (whichever is less), and can be used for land and building acquisition; building, construction and renovation; machinery and equipment acquisition and installation; and working capital. For-profit small businesses (100 employees or less) that are located in a DCED designated distressed community or Keystone Opportunity Zone are eligible.

CUSTOMIZED JOB TRAINING PROGRAM (CJT): Grants up to 75 percent of the eligible costs for training new or incumbent employees. Trainees must be residents of PA, employed in PA and must earn more than 150 percent of current minimum wage. Manufacturing, industrial, agricultural enterprises, R&D, advanced technology and business service firms (no point of sale/retail) are eligible.

DIGITAL & ROBOTIC TECHNOLOGY: The Technology Collaborative (TTC) was formed in 2005 through the merger of the Pittsburgh Digital Greenhouse and the Robotics Foundry. TCC is a statewide economic development organization whose mission is to help increase PA’s technology-based economy through the development of collaborative industry clusters that leverage the region’s world-class assets in advanced electronics, cyber security and robotics. It helps to create an ideal environment for business expansion through leverage of the region’s high-tech base, along with resources and support from local universities, private foundations, regional development organizations, federal, state and local government, and industry. As a member-driven initiative, TTC delivers high-value-add programs and services that start-up and expansion businesses need such as collaborative research, education and training, extensive business support, networking opportunities and employee recruitment services.

EDUCATIONAL IMPROVEMENT TAX CREDIT PROGRAM (EITC): Tax credits to eligible businesses contributing to a Scholarship Organization, an Educational Improvement Organization and/or a Pre-Kindergarten Scholarship Organization. Tax credits equal to 75 percent of its contribution up to a maximum of $300,000 per taxable year—can be increased to 90 percent of the contribution, if business agrees to provide same amount for two consecutive tax years. For contributions to Pre-Kindergarten Scholarship Organizations a business may receive a tax credit equal to 100 percent of the first $10,000 contributed and up to 90 percent of the remaining amount contributed up to a maximum credit of $150,000 annually.

EXPORT FINANCING PROGRAM: Funding for small business for export activities. Maximum loan amount is $350,000. For-profit businesses with no more than 250 full-time employees exporting products manufactured or assembled at facilities located in PA or for services that originate from facilities located in PA are eligible.

FILM TAX CREDIT PROGRAM: $60 million in tax credits is available in an effort to expand the activity of film, television and other production companies in the state. A project is eligible if at least 60 percent of the project’s total production budget is used for Qualified Pennsylvania production expenses. The amount of tax credits available is equal to 25 percent of Qualified Pennsylvania production expenses for the project.

FIRST INDUSTRIES FUND: Administered by the Commonwealth Financing Authority (CFA) and the Dept. of Community and Economic Development, it is a loan, loan guarantee and grant program aimed at strengthening PA’s agriculture and tourism industries. Uses include:

• Loans and Loan guarantees – land and building acquisition and construction, machinery and equipment purchase and upgrades and working capital
• Grants – planning and predevelopment activities.

GLOBAL ACCESS PROGRAM (GAP): Designed to enhance the capability of small and mid-sized PA companies to increase export sales, it is a valuable tool available to qualifying companies seeking financial assistance and foreign market entry support. The 1:1 matching grant has a maximum annual award of $5,000 per company. Valid uses include overseas trade show participation, overseas trade mission participation, foreign market sales trip and subscription to US DOC services.

GUARANTEED FREE TRAINING PROGRAM (GFT-WEDnetPA): Basic skills (up to $450 per trainee and $75,000 per company) and IT training (up to $850 per trainee and $50,000 per company) for eligible employees of new and expanding businesses. Trainees must be PA residents, employed in PA, permanent fulltime employees and earn at least 150 percent of current federal minimum wage. Basic Skills: must be front-line employee or first level supervisor. Information Technology: must be technical worker, ITT professional or front-line employee/first level supervisor of a manufacturing company who is limited to receiving advanced applied manufacturing training only. See at www.wednetpa.com

HIGH PERFORMANCE BUILDING PROGRAM: Provides financial assistance in the form of grants and loan funds to underwrite the cost premiums associated with the design and construction or major renovation of high performance buildings in the Commonwealth. Loans for high performance building projects for small businesses shall not exceed $2 million. Grants for high performance building projects shall not exceed $500,000 or 10 percent of the total eligible building construction/renovation costs (whichever is less). Grants shall not exceed $2 million for a small business and have a term of not more than five years. There is a matching investment requirement of at least $1 for every $1 of program funds awarded.

INNOVATION GRANT (IG): Provides funding to encourage the technology transfer and commercialization of intellectual property between Pennsylvania’s technology-oriented businesses and entrepreneurs and academic medical institutions, non-profit research institutions and Pennsylvania Institutions of Higher Education (IHEs) with preference given to Keystone Innovation Zone-participating IHEs. It is a companion program to the Keystone Innovation Zone (KIZ) program. Each Grant request may not exceed $100,000 and must be matched dollar-for-dollar by resources other than the Commonwealth of Pennsylvania. Grants to IHEs, academic medical centers and non-profit research institutions are to facilitate technology transfer, including patent filings, technology licensing, intellectual property and royalty agreements and other designated resource needs.

JOB CREATION TAX CREDITS (JCTC): A $1,000-per-job tax credit to approved businesses that agree to create at least 25 new jobs (or expand the existing workforce by at least 20 percent) within three years; 25 percent of the tax credits allocated each year must go to businesses with less than 100 employees. Tax credits may not be utilized by a business until the jobs are actually created.

MARKETING TO ATTRACT TOURISTS: Provides funding to support and develop heritage assets, enhance outdoor recreation and support the growth or development of various events. A primary goal of the program is to promote overnight stays. Applicants should, as part of the project narrative, explain how their project will meet this goal. Non-profit organizations with a significant interest in the development of tourism product that provides a visitor experience to a tourist region, destination and/or attractions are eligible to apply. Funds may be used to support events, facility enhancements, new construction and/or renovations or for the development of marketing, advertising and public relations campaigns to build attendance.

NEIGHBORHOOD ASSISTANCE/ENTERPRISE ZONE TAX CREDIT (NAP/EZP): Provides tax credits to private companies investing in rehabilitating, expanding or improving buildings or land located within designated enterprise zones. Uses include real property improvements such as rehab, expansion or physical improvements to buildings or land resulting in jobs created or retained. Tax credits equal 25 percent of amount invested, up to $500,000 total tax credits per project.

PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING (PEDFA):

• PEDFA TAX EXEMPT BOND PROGRAM – Tax-exempt and taxable bonds, both in pooled transactions and stand-alone transactions, to be used to finance land, building, equipment, working capital and refinancing. Loans are no less than $400,000 and no more than $10 million for manufacturers (with no upper limit for other projects)—up to 100 percent of project costs. Eligible businesses include manufacturing, nonprofit 501(c) (3), energy, solid waste disposal, wastewater treatment, transportation facilities, and assisted living/housing
• PEDFA TAXABLE BOND PROGRAM – Tax-exempt and taxable bonds, both in pooled transactions and stand-alone transactions, to be used to finance land, building, equipment, working capital and refinancing. Loans no less than $400,000; up to 100 percent of project costs

PENNSYLVANIA SMALL BUSINESS CREDIT INITIATIVE: Designed to increase access to credit for small businesses. The Commonwealth will deploy Small Business Credit Initiative funds through existing DCED programs to partner organizations and the Machinery and Equipment Loan Fund (MELF). Uses include land and building acquisition, building renovation and new construction, machinery and equipment acquisition and installation, infrastructure and working capital. Loans are up to $5,000,000 and all types of businesses having 500 employees or less are eligible.

SMALL BUSINESS FIRST: Funding for small businesses, including low-interest loan financing for land and building acquisition and construction, machinery and equipment purchases and working capital. Loans are up to $200,000 or 50 percent of total eligible project costs, whichever is less; maximum loan amount for working capital is $100,000 or 50 percent of total eligible project costs, whichever is less.