Allegheny County Economic Development business tax incentives include abatements, increment financing, and tax-exempt financing.
Tax incentives promote:
- Increased investment
- Expansion of the economic base
- Increased employment opportunities
- Redevelopment of blighted and under-utilized properties
Local Economic Revitalization Tax Assistance (LERTA) decreases real-estate property taxes, allowing municipalities to redevelop a deteriorated area and developers to pursue a specific development project.
Tax Increment Financing
Tax Increment Financing (TIF) provides gradual increases in real-estate property tax revenues within a specific area over a term of up to 20 years, generating funds to finance and facilitate new development.
Tax-exempt financing programs enable borrowers to fund large-scale projects in a timely, cost-effective manner. Funding covers various uses, typically with longer repayment terms and lower interest rates than are generally available.
Proceeds can be applied to capital projects such as land acquisition, construction of new facilities, additions or renovations to existing structures, and equipment purchases. Funding may also be used for refinancing certain outstanding debt, credit enhancement features, and project financing costs.
Other exempt facilities include:
- Solid and hazardous waste disposal centers
- Sewage treatment centers
- Utility suppliers
- Heating and cooling facilities
- Transit depots
Industrial Development Authority (IDA)
For small manufacturing companies and 501(c)(3) nonprofit organizations including, but not limited to, libraries, museums, and charter schools
Hospital Development Authority (HDA)
For projects involving hospitals, health centers, personal care facilities, nursing homes, and other entities dedicated to healthcare
Higher Education and Building Authority (HEBA)
For higher learning institutions such as colleges, universities, and other educational organizations
Redevelopment Authority of Allegheny County (RAAC)
For redevelopment projects involving tax increment financing (TIF)