Business Incentive Programs In Pennsylvania Have a development project or business that you are interested in locating in Cumberland Valley? There are a number of potential incentives available to make your business or project economically viable. Contact CAEDC using the link below to discuss what incentives may be available for your project. Contact Us Public Funding CAEDC assists clients interested in obtaining federal, state or local funding to assist in improvements to sites and transportation. Whether it is assisting with applying for grant funding or navigating the tax abatement process, CAEDC collaborates with local officials and stakeholders to match businesses with the right public funding options. Local Economic Revitalization Tax Assistance (LERTA) A LERTA is an incremental tax abatement that allows local governments to incentivize development in areas that are “economically depressed”. These abatements are used to encourage construction and improvements to an industrial, commercial and business property. The abatement is structured by the local taxing body allowing for the reduction in real property taxed over a period of time (up to 10 years) on all or a portion of the assessment attributed to new construction improvements. Tax Incremental Financing (TIF) TIFs are mechanisms for funding public infrastructure improvements for private residential, commercial or industrial development. An allocation of all or a portion of additional tax revenue resulting from increasing property values from a development project are dedicated to funding public infrastructure improvements. State Business Assistance and Incentives The Pennsylvania Department of Community and Economic Development (DCED) and the Governor’s Action Team (GAT) provide corporate incentives to companies looking to relocate to Cumberland County. Various grants, loans, tax assistance and bond programs are available. CAEDC provides grant writing and application assistance to businesses interested in applying for state funding. Programs vary by project size and type. State Business Assistance Program Guide (pdf) Economic Development Zones Economic development zones provide various types of incentives to qualifying businesses located within the designated areas. Four types of zones are designated in Cumberland County: Enterprise Zones, Foreign Trade Zones (FTZ), Keystone Innovation Zones (KIZ) and SBA Historically Underutilized Business (HUB) Zones. Economic Development Zone Map Learn more about the zones designated in Cumberland County below. Enterprise Zones If your business is considering the rehabilitation, expansion or improvement of an existing building or land, you may be eligible to receive an Enterprise Zone tax credit. The Enterprise Zone makes launching or growing a business more affordable through a wide range of government-sponsored programs. Enterprise Zones are contiguous multi-municipal areas that offer businesses located within the zones priority consideration for DCED grants and loan funds, eligibility for Enterprise Zone low interest financing, eligibility to apply for 20% tax credits against State Corporate Net Income Tax for the value of improvements made to business properties located in the zone, and additional priority considerations for other state programs. Cumberland County has a number of areas included in the Harrisburg Technology Corridor Enterprise Zone. The zone extends from Shippensburg to Harrisburg. Foreign Trade Zones Does your business conduct commerce internationally? Learn about Foreign Trade Zone #147, a regional economic development incentive that includes Cumberland County, along with Adams, Berks, Dauphin, Franklin, Lancaster, Lebanon, Perry, and York counties. Build your business in a location that makes connecting to air, road and rail transportation more convenient, while reducing the negative economic impact of duties. Three locations in Cumberland County are incorporated into the regional Foreign Trade Zone #147; however, any company interested in becoming an FTZ site can apply. The sites included in the zone give U.S. based companies the ability to defer, reduce or in cases eliminate Customs duties on products entering the zone. The FTZ program offers companies opportunities to remain competitive with international counterparts and reduce operating costs. If your company is interested in applying for FTZ designation contact Central Pennsylvania’s Foreign Trade Zone. If your company is interested in entering the international market, the World Trade Center: Harrisburg provides education and expertise on expanding your client base abroad. Keystone Innocation Zone (KIZ) If your for-profit enterprise is less than eight years old and is within a targeted industry, your business may be eligible for tax credits with the Keystone Innovation Zone program. The tax credit, which can total up to $100,000 annually per company, applies to businesses located within the Zone’s geographic boundaries. Keystone Innovation Zones are designated zones that provide targeted industry clusters in specific locations with access to tax credits, priority review for DCED funding opportunities, and partnerships with regional universities. Cumberland County’s KIZ locations are part of the larger Harrisburg Market KIZ. The Harrisburg Market KIZ focuses on three industry clusters: advanced manufacturing, life sciences and business technology solutions. The two KIZ locations in Cumberland County are the Murata Business Center (453 Lincoln St, Carlisle PA 17013) and Business Central (18 North Hanover St, Carlisle PA 17013). These zones receive support from Dickinson College, HACC, Messiah College and others to promote innovative business development in Cumberland County. The Keystone Innovation Zone Tax Credit Program is funded by the Pennsylvania Department of Community and Economic Development. SBA Historically Underutilized Business (HUB) Zones The HUB Zone program was developed by the SBA to assist small businesses in designated areas to have access to federal procurement opportunities. Small businesses located in HUB Zones are eligible to become designated HUB Zone Firms. These firms receive the HUB Zone benefits including: set asides, 3% government-wide prime and subcontracting goals, and 10% price evaluation preference. HUB Zones are designated by the SBA based on low-median household incomes or high unemployment. There are five census tracts in Cumberland County that are designated HUB Zones. These tracts are located in the Carlisle and Shippensburg areas. The HUB Zone Program is administered by the SBA.
