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Economic Incentives

The Northeastern Regional Bioscience Initiative, through it partnerships with state and local governments and regional economic development partnerships has all the elements in place to give businesses and their employees the tools needed to succeed in today's fast-paced, increasingly competitive economy.

Our team will serve as your community partner throughout the site selection process, working with the Commonwealth of Pennsylvania to secure an incentives package tailored to your company needs.

The following is a list of the programs most commonly used in Pennsylvania by growing businesses.

Pennsylvania has an array of business incentive programs in the form of tax credits, low-interest rate financing and grants for job training and general project costs. The list below highlights the programs more typically offered for an industrial development project; however, this list is not exhaustive and there are other programs that can be deployed on a case-by-case basis.

Guaranteed Free Training (GFT)

GFT provides training grants for new and expanding manufacturing, industrial and technology based businesses. Through GFT, a company can receive up to $450 in training grants for each new employee receiving entry-level training, or up to $850 per employee for information technology training. In order to be eligible for these funds, employees must earn at least 150% of the federal minimum wage. Training must take place within the fiscal year in which the application is made.

For more information click here.

Job Creation Tax Credits (JCTC)

Under the Job Creation Tax Credit Program, Pennsylvania can provide a tax credit to companies that create quality jobs in the Commonwealth. These credits can be applied to a business’s state Corporate Net Income Tax and Capital Stock and Franchise Tax. A tax credit of $1,000 per each new job to be created is provided to companies that would expand or locate to Pennsylvania. JCTC is not made available to projects located in a Keystone Opportunity Zone (KOZ).

For more information click here.

Pennsylvania First Program (PFP)

The Pennsylvania First Program is reserved for high priority economic development projects that will have a significant economic benefit to the Commonwealth. PFP is extremely flexible and can be used by a recipient company for most costs related to its project. The PFP award is calculated based on the characteristics of this economic opportunity, including but not limited to, number of jobs created, private capital investment, industry type, wage levels, growth potential, company strength and regional economic strategy. PFP award amounts may be impacted by the location of a project in a Keystone Opportunity Zone (KOZ).

For more information click here.

Machinery & Equipment Loan Fund (MELF)

MELF provides low-interest financing for machinery and equipment acquisition and installation. MELF can finance up to 50% of the eligible m/e costs, up to a current maximum of $1,000,000. The interest rate for MELF loans is currently 2.75%.

For more information click here.

Pennsylvania Economic Development Financing Authority (PEDFA)

PEDFA is a statewide issuer of both tax-exempt and taxable bonds on behalf of both for-profit and non-profit businesses and municipalities. The bonds are issued for projects of $400,000 or more. Borrowers of PEDFA financing must provide credit enhancement, which generally involves a letter-of-credit in the amount of the bond.

For more information click here.

Pennsylvania Industrial Development Authority (PIDA)

PIDA can provide low-interest loans for building purchase, construction or renovation at the project site. Based on eligible costs, PIDA can finance up to $2.25 million at an interest rate of as low as 1.75%. The maximum term for PIDA loans is 15 years.

For more information click here.

Keystone Opportunity Zones (KOZ) and Keystone Opportunity Expansion Zones (KOEZ)

Eligible businesses that move into a KOZ/KOEZ are exempt from paying a variety of state and local business 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. KOZ/KOEZ zones expire at various times depending on the period designated.

 Local Economic Revitalization Tax Assistance Act (LERTA)

The LERTA program allows local municipalities, school districts, and counties to offer up to a 100% tax abatement on improvements to property for up to 10 years. Terms vary by location.

Workforce & Economic Development Network of PA (WEDnetPA)

A Guaranteed Free Training Program offered by Pennsylvania to strengthen an already healthy and supportive business environment by rewarding in-state businesses that show solid growth and out-of-state companies that decide to relocate to Pennsylvania. Qualified companies receive free job training.

 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.

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 cannot 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 $2,000,000. PIDA will lend up to $2,250,000 to companies located in certain distressed communities or special development zones. A company that benefits from a PIDA loan must create and/or retain one full-time job for every $35,000 borrowed. Eligible companies include manufacturers, distributors, most other industrial companies and certain large office companies. Retail and most commercial businesses are ineligible. Click here for more information.

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 15 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. Click here for more information.

RBI Facts

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FACT #1:

More than $2 Million in NIH funding has been attracted to NEPA within the last five years.

FACT #2:

Companies including Sanofi Pasteur are currently doing business in NEPA at a cost of 26.5% less than if operating in New York and 21.1% less than in Philadelphia.

FACT #3:

FedEx and UPS are operating refrigerated distribution facilities in NEPA due to our location, labor and operating costs.

FACT #4:

32.3% of NEPA’s population is over the age of 65, providing companies with an available pool of patients for equipment and pharmaceutical testing.

FACT #5:

Companies providing specialty healthcare services can capitalize on $1 Billion of annual patient care revenue currently leaving the NEPA region.

Testimonials

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The key reasons for our success in distribution in Northeastern Penn. are we are located within 5 hours of all major cities in the Mid-Atlantic and New England areas, low overhead, low taxes and an inspired workforce.

Ray Lick
Wilkes Barre Regional Manager, Henry Schein

The rapid growth and success of this region has provided BioSpectra will a skilled labor force and contributed to our own growth.

Dora Meissner
BioSpectra

It is undeniable that our northeastern region has a wealth of diverse bioscience resources.

Jerry Musheno
Vice President, Project /Program Administration, Maximus

NEPA presents a unique opportunity for bioscience companies to capitalize on the region’s intellectual resources and geographic proximity to major metropolitan areas.

John P. Wiercinski
Regional VP for Geisinger Health System

This area’s great access, combined with a dedicated and highly productive workforce, has helped Benco Dental become the nation’s largest independent dental distributor.

Rick Cohen
Managing Director, Benco Dental

Questions?

For more information,
contact:

Penn's Northeast

John L Augustine III

President/CEO

(570) 883-0504

- OR -

Amy Luyster

Assistant Vice President,
The Scranton Plan

(570) 342-7711