Pennsylvania has all the elements in place to give businesses and their employees the tools they need to succeed in today's fast-paced, increasingly competitive economy. A dazzling number of incentive programs help companies stay on top of their game whether relocating or expanding their facility or upgrading the skills of their employees.

The following is a list of the programs most commonly used by Penn's Northeast, Inc. to help growing businesses.

Job Creation Tax Credits (JCTC)
This state program offers employers a $1,000 tax credit per full-time job, per year. A business may claim credits only after a job has been created. Jobs must be created within three years from the start date and all tax credits must be claimed within five years from receipt of the tax credit certificate.

To be counted as new full-time employees under the JCTC program, new employees must earn an average hourly rate of at least 150% of the federal minimum wage, excluding benefits.

Keystone Opportunity Zones (KOZ)
Eligible businesses that move into a KOZ are exempt from paying a variety of state and local taxes including local real estate taxes and gross receipts taxes, as well as Pennsylvania's capital stock and franchise tax and corporate net income tax, through 2010. To search for KOZ properties, click here.

Keystone Opportunity Expansion Zones (KOEZ)
Eligible businesses that move into a KOEZ are exempt from paying a variety of state and local taxes including local real estate taxes and gross receipts taxes, as well as Pennsylvania's capital stock and franchise tax and corporate net income tax, through 2013. To search for KOEZ properties, click here.

Local Economic Revitalization Tax Assistance Act (LERTA)
Several municipalities, school districts and counties in Penn's Northeast offer real estate tax abatements on improvements for certain commercial and industrial projects. Some of these communities offer 100% abatements for ten years. Others tie their abatements to the cost of construction (i.e. one year of abatement for every $1 million of construction). Still others offer graduated abatements for up to 10 years. Contact the economic development organizations that serve the counties in which you have interest to learn where the LERTA program is active.

Opportunity Grant Program (OGP)
This Pennsylvania Department of Community and Economic Development (DCED) program provides outright grants to employers that create a substantial number of new jobs. Grant funds can be used for a variety of standard business expenses including job training, construction, the purchase of machinery and equipment, and working capital.

A company that receives an Opportunity Grant Program award must, within three years, meet certain job creation requirements. The company's new hires must receive a base pay of at least 150% ($7.73/hr.) of the federal minimum wage, excluding benefits, in order to be counted towards the employment requirement.

Customized Job Training (CJT)
This state grant program reimburses Pennsylvania employers up to 100% for certain trainer's expenses. CJT funds can be used for consumable materials and supplies, approved contracted services, instructional costs, and relevant travel costs for instructors.

Workforce & Economic Development Network of PA (WEDnetPA)
Qualified companies can receive free "basic skills" and "information technology" training through this innovative state program. An alliance of 14 State System universities and several major technology centers makes the training available.

For more information on WEDnetPA, including what qualifies as basic skills and information technology, visit: www.wednetpa.com

WorkForce Investment Act of 1998 (Title 1, Subtitle B)
A federal program that provides job training to eligible individuals. Through an On-the-Job-Training (OJT) component, companies can be reimbursed for up to 50% of wages paid to eligible trainees during the training period. The amount of time included in the training period varies with the difficulty of the job, which is usually determined through the assessment of skill levels found in the Dictionary of Occupational Titles.

Program eligible employees include, but are not limited to, those who are economically disadvantaged and those who have been dislocated due to a plant closing or mass lay-off. Local Workforce Investment Boards determine the amount of grant funding to be awarded to eligible companies.

Pennsylvania Economic Development Financing Authority (PEDFA) - Tax-Exempt Bond Program

Pennsylvania Economic Development Financing Authority (PEDFA) -Taxable Bond Program

Tax-exempt and taxable bonds, both in pooled transactions and as stand-alone transactions, can be used to finance land, building, equipment, working capital and refinancing. PEDFA can finance up to 100% of eligible project costs, provided the borrower obtains a letter of credit from a local bank equal to the amount of the bond. Interest rates for tax-free loans are substantially lower than U.S. prime and are weekly variable. One full-time job must be created or retained for every $50,000 borrowed.

Pennsylvania Industrial Development Authority (PIDA)
Low-interest loan financing through Industrial Development Corporations for land and building acquisition, construction and renovation, resulting in the creation or retention of jobs. PIDA rates can be as low as 3% interest and are fixed for the entire term of the loan, which can not exceed 15 years. PIDA will finance up to 40% of the total real estate project cost (up to 50% in certain circumstances) with a maximum loan amount of $1,250,000. PIDA will lend up to $1,750,000 to companies located in certain distressed communities or special development zones. A company that benefits from a PIDA loan must create one full-time job for every $25,000 borrowed. Eligible companies include manufacturers, distributors, most other industrial companies and certain large office companies. Retail and most commercial businesses are ineligible.

Machinery and Equipment Loan Fund (MELF)
Low-interest loan financing to acquire and install new or used machinery and equipment or to upgrade existing machinery and equipment. Maximum MELF loan is $500,000, or 50% of the total eligible project cost, whichever is less. MELF term generally ranges from three to seven years. Interest rate is fixed for the entire term and can be as low as 3%. Borrower must create or retain one full-time job for every $25,000 borrowed.

Small Business First (SBF)
Funding for small businesses, including: low-interest loan financing for land and building acquisition and construction; machinery and equipment purchases and working capital. Maximum loan amount is $200,000. Program will fund up to 50% of total eligible project cost. Interest rate is fixed for the entire term, typically at 3%. Terms are as follows: real estate up to 10 years, machinery & equipment up to seven years, working capital up to three years. One full-time job must be created or retained for every $25,000 borrowed.

For more detailed information and matrixes of state business incentive and economic development programs available, please visit:

or contact Penn's Northeast