Abandoned Mine Drainage Abatement & Treatment (AMDATP)
Act 13 of 2012 established the Marcellus Legacy Fund and allocated funds to CFA for abandoned mine drainage, abatement and treatment with the (AMDATP). As one of the largest sources of stream impairment in Pennsylvania, billions of gallons of Abandoned Mine Drainage (AMD) impair over 5,500 miles of streams within the commonwealth. Funding is used for projects involving the reclamation of Abandoned Mine Well(s); construction of a new AMD site; remediation and repair of existing AMD project sites; operation and maintenance of current AMD remediation sites; establishment of a trust fund to ensure ongoing maintenance is achieved and monitoring of water quality to track or continue to trace nonpoint source load reductions resulting from AMD remediation projects.
Alternative and Clean Energy Program (ACE)
The Alternative and Clean Energy Program provides financial assistance in the form of grants and loan funds that will be used by eligible applicants for the utilization, development and construction of alternative and clean energy projects; infrastructure associated with compressed natural gas and liquefied natural gas fueling stations and energy efficiency and energy conservation projects throughout the commonwealth. The program is administered jointly by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP), under the direction of the Commonwealth Financing Authority (CFA). Funds are used to promote the utilization, development and construction of alternative and clean energy projects, plus energy efficiency and energy conservation projects in the commonwealth.
Baseline Water Quality Data
Act 13 of 2012 established the Marcellus Legacy Fund and allocated funds to CFA to be used to fund statewide initiatives to establish baseline water quality data on private water supplies using the Baseline Water Quality Data Program (BWQDP).
Funding is used for projects involving water sample collection and analysis to document existing groundwater quality conditions on private water supplies.
Ben Franklin Technology Development Authority – University Research Commercialization Grants
This is a competitive grant program to promote stronger synergy between university-based applied research and development (R&D) and the transfer of technology as it relates to economic and workforce development in the areas of: energy, nanotechnology and advanced materials. Eligible applicants include: Pennsylvania higher education institutions located in Pennsylvania that are legally authorized to grant degrees in the commonwealth, consortia of Pennsylvania higher educational institutions, Pennsylvania-based not-for-profit with the ability to advance commercialization of research done in the areas of energy, nanotechnology and advanced materials within the commonwealth in collaboration with a Pennsylvania higher education institution.
Ben Franklin Technology Development Authority (BFTDA) –Venture Capital Investment Program
The program is a Commonwealth of Pennsylvania initiative intended to address the financing needs of technology-oriented businesses by increasing the amount of risk capital available to technology businesses’ investment in venture capital partnerships. The venture capital partnerships invest mainly in early-stage PA technology companies.
The funds are available to venture capital funds in the form of loans. A venture capital fund applying for this program will be most competitive when its primary investment targets are companies in the seed or early stage of development and/or sectors of strategic interest to the BFTDA. The investments are required to provide significant leverage as well as the potential to make Pennsylvania a national leader in support for its early-stage companies.
Ben Franklin Technology Partners Challenge Grant Program
The Ben Franklin Technology Partnership is comprised of a network of four independent organizations known as the Ben Franklin Technology Partners. The network serves the commonwealth by playing a major role in promoting and supporting business innovation within the state. The Ben Franklin Technology Partners provide access to capital, business expertise, technology commercialization services and a network of resources in order to advance the development of new technologies. Funding is used for Private Company and University joint research and development along with technology training and entrepreneurial infrastructure.
Broadband Outreach & Aggregation Fund (BOAF)
BOAF is a grant program designed to assist rural communities’ aggregate demand for broadband services. The goal is for rural communities to overcome challenges associated with low density populations and physically remote areas in procuring broadband services. BOAF is funded through PUC assessments on the rate increases of CenturyLink, Windstream and Verizon over the period 2006-2015, as detailed under Act 183 of 2004/Chapter 30.
The program provides mezzanine capital for developers for real estate assets in small to mid-sized Pennsylvania communities. Funds are awarded to Professional Investment Fund Managers through a Request for Qualification (RFQ) (advertised in Pennsylvania Bulletin), thorough the Commonwealth Financing Authority. The RFQ criteria includes: demonstrated capacity for serving the PA marketplace, including specific geographic areas and/or market segments; expertise in the proposed real estate sector; expertise in range of investments demonstrated by experience and success with previous investments and demonstrated capacity to attract additional investment for projects.
Business in Our Sites (BOS) Grants and Loans
The Business in Our Sites Program provides loans for the acquisition and development of key sites for future use by businesses, private developers and others. The program is administered through the Commonwealth Financing Authority (CFA). The program is intended to provide financial assistance to municipalities and others to plan and prepare sites for future use. Projects which require site development assistance where a business has already committed to locating at a specific site or where a private developer has already committed to locating a facility for a specific user may also seek financial assistance under other appropriate programs administered by DCED.
Community Based Services Tax Credit (CBSTC)
The Community Based Services Tax Credit (CBSTC) establishes a tax credit program for businesses that make contributions (cash, personal property or services) to non-profit entities that provide community-based services to individuals with Intellectual Disabilities. Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made.
Community Economic Development Loan Program (CED)
The Community Economic Development (CED) loan program provides loans for small business (100 full-time employees or less) located in designated distressed areas identified in Appendix IV to these guidelines. The purpose of the program is to assist businesses that will enhance the economic well-being of a community or neighborhood by providing products or services to communities previously unserved or underserved, or through the employment of residents of the community. Loan funds are available for eligible small business enterprises as an interest rate of 2 percent with flexible repayment terms that meet the needs of the business.
Discovered in PA, Developed in PA Program (D2PA)
The D2PA program is devoted to increasing economic opportunity in the commonwealth by seeking innovative ideas that promote entrepreneurship, technology transfer, business outreach and increased capacity. Eligible funding uses include: reasonable salary/personnel expenses; consultant fees relating to approved programmatic activities, land/building/equipment improvements, meeting/travel expenses and costs associated with preparation and publishing of educational/marketing materials.
Educational Improvement Tax Credit Program (EITC)
The Educational Improvement Tax Credit program provides an incentive for businesses to contribute to an educational improvement organization, a scholarship organization or a pre-kindergarten scholarship organization by providing tax credits. Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made. Businesses must be authorized to do business in the state and must be subject to business tax.
Export Finance Program (EFP)
The Export Finance Program (EFP) administered by DCED is designed to increase the level of foreign exports and the number of exporting companies in Pennsylvania. Many creditworthy small businesses do not have access to adequate financing because they either lack a relationship with a financial institution with export finance capabilities or the size of the transaction makes it uneconomical for the private sector to participate, even when credit risks are insured. The program fills the export financing gap by lending on export contracts. EFP provides assistance for two types of export financing projects. As a Delegated Authority Lender Authority under Ex-Im Bank’s Working Capital Guarantee Program, the Commonwealth of Pennsylvania is permitted to provide working capital financing for pre-export working capital needs. In addition, the program also provides accounts receivable financing for post-export assistance. This program is not intended to supplant or be a substitute for funds otherwise available from private lending sources.
Film Tax Credit Program
The Pennsylvania Film Tax Credit Program is an economic development tool to foster the growth and development of the commonwealth’s film industry. The program, authorized under Act 55 of 2007, provides a tax credit equal to 25 percent of a film production’s qualified Pennsylvania production expenses for film productions where at least 60 percent of the total production budget is spent in Pennsylvania. Qualified projects, including feature films, television pilots, each episode of a television series intended as programming for a national audience and television commercials. The eligible expenses includes the total amount of wages and salaries of individuals employed in the production of the film, the costs of construction, editing, photography, sound synchronization, lighting, wardrobe and accessories and the rental cost of the facilities and equipment.
First Industries Fund (FIF)
The First Industries Fund is a loan, loan guarantee and grant program aimed at strengthening Pennsylvania’s agriculture and tourism industries. The program is administered by both the Commonwealth Financing Authority (CFA) and the Department of Community and Economic Development (DCED). Funds for loan and loan guarantees are awarded for land and building acquisition and construction and machinery and equipment purchase and upgrades; working capital grants are for planning and predevelopment activities.
Flood Mitigation (FMP)
Act 13 of 2012 establishes the Marcellus Legacy Fund and allocates funds to the Commonwealth Financing Authority (CFA) for funding statewide initiatives to assist with flood mitigation projects. Projects authorized by a flood protection authority, the Department of Environmental Protection (DEP), the U.S. Army Corps of Engineers (Corps), or the U.S. Department of Agriculture's Natural Resources Conservation Service (NRCS) or identified by a local government for flood mitigation are eligible for the program.
Greenways, Trails & Recreation Program (GTRP)
Act 13 of 2012 established the Marcellus Legacy Fund and allocates funds to the CFA for planning, acquisition, development, rehabilitation and repair of greenways, recreational trails, open space, parks and beautification projects using the (GTRP). Funding is used for projects which involve development, rehabilitation and improvements to public parks, recreation areas, greenways, trails and river conservation.
Guaranteed Free Training Program (GFT-WEDnetPA)
Through the Guaranteed Free Training Program (GFT), qualified in-state businesses and out-of-state companies relocating to PA can access funding for a wide range of employee training. This program provides grant funding to PA companies for basic skills and information technology training of employees. Employees eligible for training under this program must be full-time employees of the business receiving GFT funding, must be PA residents, must work in PA, and must earn at least 150 percent of the federal minimum wage.
H2O PA Flood Control Program
The H2O PA Act was established by the General Assembly in July 2008. The Act provides single-year or multi-year grants to the commonwealth, independent agencies, municipalities, or municipal authorities for flood control projects. Funding is used for projects which involve construction, improvement, repair or rehabilitation of part or all of a flood control system.
H2O PA High Hazard Dams
The H2O PA Act was established by the General Assembly in July 2008. The Act provides for single-year or multi-year grants to the commonwealth, independent agencies, municipalities or municipal authorities for High Hazard Dams. Funding is used for activities to assist with repair, rehabilitation or removal of part or all of a High Hazard Dam.
High Performance Building Program (HPB)
The High Performance Building Program provides financial assistance in the forms 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. The program is administered jointly by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP) under the direction of CFA.
*An HPB is a building that adheres to the standards adopted by the Department of General Services (DGS) in consultation with the DEP that optimizes the energy performance of buildings.
Historic Preservation Tax Credit
The program provides tax credits to qualified taxpayers for the restoration/conversion of a qualified historic structure into an income producing property. All projects must include a qualified rehabilitation and Museum Commission (PHMC) as being consistent with the standards for rehabilitation of historic buildings as adopted by the United States Secretary of the Interior. Tax credits may be applied against the tax liability of a qualified taxpayer. Qualified taxpayers include individuals, corporations, business trusts, limited liability companies (LLCs), limited liability partnerships (LLPs) or any other form of legal business entity. The tax credits awarded to a qualified taxpayer shall not exceed 25 percent of qualified expenditures. The total tax credits awarded to a qualified taxpayer may not exceed $500,000 in any fiscal year.
Industrial Sites Reuse Program (ISRP)
The Industrial Sites Reuse promotes the reuse and redevelopment of former industrial land and sites by providing funding for public entities, private non-profit economic development groups, and companies to perform environmental site assessment and remediation work. Entities cannot have caused or contributed to the environmental contamination, in order to receive funding. Funds are used for Phase I, II and III environmental assessments and remediation of hazardous substances.
Infrastructure & Facilities Improvement Program (IFIP)
The Infrastructure and Facilities Improvement Program (IFIP), established by Act 23 of 2004, provides multiyear grants for debt service incurred to pay costs of certain infrastructure and facilities improvements. Funds are used for reimbursement of debt service relating to the debt issued for eligible infrastructure and facilities improvement project costs. Eligible projects include: convention centers, hospitals, hotels, industrial enterprises, manufacturers, retail enterprises creating at least 200 jobs and occupying more than 200,000 square feet, and research and development enterprises.
Job Creation Tax Credits (JCTC)
The Job Creation Tax Credit Program was established for the purpose of securing job-creating economic development opportunities through the expansion of existing businesses and the attraction of economic development prospects to the Commonwealth of Pennsylvania. The JCTC program is available to eligible businesses that, within three years from a negotiated start date, create 25 or more jobs or increase employment by 20 percent. Every new full-time job, up to a set maximum which meets certain minimum wage standards, will result in a $1,000 tax credit that the business can use to pay a number of state business taxes. The business may claim these credits only after the jobs are created. A minimum of 25 percent of all tax credits available to be awarded each fiscal year will be allocated to businesses that employ 100 or fewer employees.
Keystone Innovation Network (KIN)
KIN is a competitive grant program supported by the Ben Franklin Technology Development Authority (BFTDA). The KIN leverages prior state investments in established local and regional innovation assets — The KIN seeks partnerships, improved performance and competition while creating closer collaboration and support for eligible companies and universities. Services include the acceleration of technology commercialization, the development of technology transfer infrastructure, the leveraging of university research faculty and intellectual property, tax incentives, funding and other supportive services that foster growth in companies and the communities where they are established.
Keystone Innovation Zone Tax Credit Program (KIZ)
This program provides tax credits to early-stage, technology-oriented businesses and entrepreneurs operating in a Keystone Innovation Zone (KIZ); companies without a tax liability may sell tax credits to companies with tax liabilities for cash. Funding provides tax credits for companies that have been in operation less than eight years, whose gross revenues have increased over the previous year, are located in a KIZ Zone and that fall under the industry sector focus.
Keystone Opportunity Zones (KOZ)
The program provides state and local tax abatement to businesses and residents locating in one of the 12 designated zones. Businesses, property owners and residents that are located in a KOZ are eligible to receive significant state and local tax benefits. Projects in KOZ are given priority consideration for assistance under various community and economic building initiatives.
Pennsylvania businesses relocating to a KOZ must either: Increase their full-time employment by 20 percent within the first full year of operation, or make a 10 percent capital investment in the KOZ property based on their prior year’s gross revenues. Eligibility for benefits is based upon annual certification. In order to receive benefits, any entity applying must be compliant with all local and state taxes and building and zoning codes. Zone Acreage range up to 5,000 acres and each zone is comprised of parcel-specific sub-zones in various sizes.
Keystone Special Development Zone (KSDZ)
The KSDZ program was established for the purpose of providing incentives to for-profit businesses with tax credits for locating and redeveloping in former industrial and commercial sites. Tax credits are used to offset various business tax liabilities.
Life Science Greenhouses
Three regional Greenhouses are the only state organizations focused exclusively on growing the life sciences sector in Pennsylvania by creating new companies, investing in emerging companies, accelerating transfer of new discoveries from labs to companies and building collaborations between academic, entrepreneurial, corporate, financial and government partners. Greenhouses also develop and attract CEO talent to create and grow PA-based companies. Equity investments or loans are made to seed and early-stage companies within competitive bioscience sectors: new therapeutics, biomedical devices, drug delivery systems, platform technologies, bionanotechnology applications and bioinformatics.
Local Share Assessment Fund (LSA) - (Gaming Funds)
The PA Race Horse Development and Gaming Act (Act 2004-71) as amended has established the Pennsylvania Gaming Local Share Account under the Commonwealth Financing Authority (CFA) for the purpose of distributing 2 percent of gross terminal revenues of certain licensed gaming facilities in an orderly and timely fashion to support and enhance community and economic well-being and mitigate the impact of gaming and related activities.
Machinery and Equipment Loan Fund (MELF)
- Luzerne County: All Luzerne County municipalities are eligible for funding under this program.
- Monroe County: The following five counties contiguous to Monroe County including: Carbon, Lackawanna, Northampton, Pike and Wayne.
- Washington County: All of Washington County, economic development authorities within Washington County, and redevelopment authorities within Washington County.
* Washington County is not under the Commonwealth Financing Authority (CFA).
The Machinery and Equipment Loan Fund (MELF), which is administered by the Department of Community and Economic Development (the Department), is designed to stimulate the growth and assist in the retention of Pennsylvania businesses. The program provides low-interest loan financing for a portion of the cost of machinery and equipment purchases to eligible businesses that commit to creating or retaining jobs within the state. MELF may be used in conjunction with other state financing programs or with programs operated by local or regional economic development providers. In order to better serve the needs of manufacturers and others who must make substantial capital investments in order to remain competitive in the global marketplace, Act 12 of 2004 amended the MELF law, increasing the maximum loan amount and adding new eligible businesses and activities. Information technology companies, biotechnology companies are now eligible to receive MELF funding.
Marketing to Attract Tourists
The Five-Year Strategic Tourism Plan of 2010 highlighted Pennsylvania’s ability to attract a consistent flow of visitors year-round, but also recognized a need to develop assets to help increase visitor length of stays. 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. The program provides funding to support and develop heritage assets, enhance outdoor recreation and support the growth or development of various events. It also provides funding to support and develop heritage assets; enhance outdoor recreation and sports travel; promote educational tourism initiatives; increase domestic and international tourism and support the growth or development of various programs and events that are aligned with the State Tourism Office marketing plan.
Neighborhood Assistance Program (NAP)
The NAP was the first of its kind in the United States with goal of improving neighborhoods throughout Pennsylvania by using tax credits to create a partnership between community organizations and the business community. Through NAP, millions of dollars from the private sector have been invested in programs and projects that have positively impacted communities throughout the state. The NAP provides businesses with five options for participation:
New American Development Fund
- NAP: The program is designed to help improve distressed neighborhoods through the creation of a partnership between a nonprofit and business/corporation, for which the business can receive tax credits for eligible contributions.
- NAP – Partnership Program (NAP/NPP): Long-term collaborations (five years or more) of business, government and community leaders to produce a comprehensive, asset-based and relationship-driven approach to community development.
- NAP – Enterprise Zone Program (NAP/EZP): Tax credit applicable to private companies which make qualified investments to promote community economic development in impoverished areas that have been designated as state Enterprise Zones.
- NAP – Special Program Priorities (NAP/SPP): Under the Neighborhood Assistance Program a project must serve distressed areas or support neighborhood conservation. Projects must fall under one of the following categories: affordable housing programs, community services, crime prevention, education, job training or neighborhood assistance.
- NAP- Charitable Food Program (NAP/CFP): The Charitable Food Program is designed to help regional food banks or emergency food providers. Funding to CFP is supplied through tax credits given to businesses making contributions to an approved provider. A tax credit of up to 55 percent can be given.
This program provides low-interest private loans to finance economic development projects within the state's federally-designated EB5 regional center that are projected to create a significant number of new, full-time, direct or indirect jobs. Funds are used to support the costs associated with new construction; the acquisition of plant, property and equipment; building rehabilitation and tenant improvements. Loan funds can also be used as working capital.
New PA Venture Capital Investment Program
This program provides loans for venture capital partnerships for investment in early-stage, job-producing Pennsylvania companies. The nature of the investment shall be equity or convertible debt. Currently investors must ensure that 50 percent of the investment is made in underserved areas of Pennsylvania, defined as outside the Philadelphia area and those populations below one million.
Next Generation Farmer Loan Program
The Next Generation Farmer Loan Program assists beginning and first-time farmers in the purchase of land, farm equipment, farm buildings and breeding livestock. The Next Generation Farmer Loan Program uses federal tax-exempt mortgage financing to reduce a farmer’s interest rate for capital purchases, such as the purchase of farmland or agricultural machinery and equipment.
Opportunity Scholarship Tax Credit Program (OSTC)
The program provides tax credits to eligible businesses contributing to an Opportunity Scholarship Organization. Business contributions are then used by Opportunity Scholarship Organizations to provide tuition assistance in the form of scholarships to eligible students residing within a low-achieving school district to attend a nonpublic school or a public school outside of their district. Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made.
Orphan or Abandoned Well Plugging Program
The Marcellus Legacy Fund allocates funds to CFA for plugging orphan or abandoned wells that have the potential to cause health, safety, or environmental concerns. Funds are used for projects which involve the cleaning out and plugging of abandoned and orphan oil and gas wells, stray gas mitigation systems and well venting projects.
Partnerships for Regional Economic Performance (PREP)
The Partnerships for Regional Economic Performance (PREP) is designed to encourage regional coordination in economic development efforts, yielding superior customer service to the business community and a comprehensive, efficient statewide economic delivery strategy. PREP will provide grants to consortia of economic development service providers that may co-locate, develop formal partnership agreements or otherwise create a coordinated and performance-based service delivery system that ensures each inquiry or lead from a business or potential entrepreneur is referred to, and acted upon expeditiously by, the appropriate service provider(s) in the region.
Pennsylvania Capital Access Program (PennCAP)
The Pennsylvania Capital Access Program (PennCAP) provides a loan guarantee to small businesses based on a portfolio concept. The Pennsylvania Economic Development Financing Authority (PEDFA) provides capital to guarantee loans made through participating lending institutions in conjunction with the program. Most companies authorized to do business in Pennsylvania will qualify for a PennCAP loan. Startup businesses may be financed through PennCAP. Consult a loan officer at a participating bank for a list of excluded activities. Loan proceeds must be used for business purposes in Pennsylvania.
Pennsylvania Economic Development Financing Authority (PEDFA) Tax Exempt and Taxable Bond Program
The program issues tax-exempt and taxable bonds, both in pooled and stand-alone transactions, to be used to finance land and building acquisition; building renovation and new construction; machinery and equipment acquisition and installation and designated infrastructure. Loans are for no less than $400,000 and no more than $10 million for manufacturers.
Pennsylvania First (PA First)
PA First is a comprehensive funding tool to facilitate increased investment and job creation within the commonwealth. This is the principal closing fund used by GAT. Funds may be used toward job training; land and building acquisition and construction; purchase and upgrade of machinery and equipment; construction and rehabilitation of infrastructure; working capital; environmental assessment and remediation.
Pennsylvania Industrial Development Authority (PIDA)
This program provides loans for industrial development projects; manufacturing, research and development; agricultural processors; firms establishing a national or regional headquarters or computer/clerical operation centers. Funds are used for land and building acquisition, building construction and renovation.
Pennsylvania Infrastructure Investment Authority (PennVEST)
The program provides low-interest loans for design, engineering and construction of publicly and privately owned drinking water distribution and treatment facilities, stormwater conveyance and wastewater treatment and collection systems. Design, engineering and construction costs associated with publicly and privately owned drinking water distribution and treatment facilities, stormwater conveyance and wastewater collection; conveyance, treatment facilities and brownfield site remediation.
Pennsylvania Infrastructure Technology Alliance (PITA)
PITA is a collaboration of the Department of Community and Economic Development (DCED), Lehigh University's Center for Advanced Technology for Large Structural Systems (ATLSS), and Carnegie Mellon University's Institute for Complex Engineered Systems to support advanced manufacturing research to improve the global competitiveness of PA companies launch new companies and retain engineering talent in PA. DCED funding supports a matching program for manufacturing research and development projects with PA university graduate students, faculty and companies. A call for proposals in specific technology areas is released to support competitive and collaborative research projects with manufacturing companies and universities.
Pennsylvania Minority Business Development Authority (PMBDA)
The Pennsylvania Minority Business Development Authority (PMBDA) Program is designed to stimulate the creation, retention and expansion of minority owned businesses and to create jobs in Pennsylvania. PMBDA provides low-interest loans to finance a portion of the costs of land, building, machinery and equipment, and working capital to minority business enterprises unable to fully finance these projects with equity, bank financing, or other private and public sources.
Pollution Prevention Assistance Program
The program encourages small businesses (100 full-time employees or less) to adopt or install pollution prevention or energy efficient equipment or processes. Funding is used for the purchase or installation of machinery, equipment or processes that are energy efficient or reduce pollution.
The Powdered Metals Program provides training programs for the existing workforce supported through Pennsylvania State University (Penn State) and the regional community education councils. The program makes use of the facilities in the schools within the North Central Pennsylvania region, such as the metalworking facility at St. Marys High School and the laboratory at the Penn State DuBois campus. The Powdered Metals grant funds are used for equipment and training related to the powdered metals industry. Funding is dependent upon budget recommendations and constraints set in the adopted annual budget for the commonwealth. The sole applicant under this program is Penn State University.
Renewable Energy Program – Geothermal & Wind
The Renewable Energy Program (REP) provides financial assistance in the forms of grant and loan funds to promote the use of alternative energy in Pennsylvania. The program is administered jointly by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP) under the direction of the Commonwealth Financing Authority (CFA).
Research & Development Tax Credit
The Research and Development Tax Credit (R&D Tax Credit) program was established to assist the growth and development of technology-oriented businesses, particularly small startup technology businesses. Research & Development tax credits have been issued by the commonwealth to offset state tax liabilities for some time, and there has been a special minimum portion of R&D tax credits reserved for small businesses. However, many small businesses in the early stages of development are not yet profitable and do not have significant tax liability. In the past, these businesses have often not bothered to apply for the available R&D tax credits for which they were eligible. With the R&D Tax Credit assignment program, technology businesses can sell unused R&D tax credits on the open market to help advance and grow the business.
Second Stage Loan Program
This program offers a guarantee program for lending institutions to undertake projects for second stage manufacturers, advanced technology and life sciences businesses. Funds are used for loan guarantee primarily for working capital, but also to assist in asset financing needs.
Small Business First (SBF)
This program is designed to stimulate expansion and assist in the retention of small businesses for the purpose of creating new jobs and retaining existing jobs in Pennsylvania. Eligible enterprise types include: agricultural enterprises and producers; industrial; manufacturing, research and development; hospitality; recycling; computer-related service enterprises; construction and child day care enterprises. Funds are used for land and building, machinery and equipment and working capital costs.
State Small Business Credit Initiative (SSBCI)
The Pennsylvania Small Business Credit Initiative (SSBCI) program is designed to increase access to credit for small businesses. The commonwealth will deploy SSBCI funds through existing DCED programs to partner organizations and the Machinery and Equipment Loan Fund (MELF). Funds are used for land and building acquisition; building renovation and new construction; machinery and equipment acquisition and installation; infrastructure and working capital. Loans are made by DCED partner organizations and the MELF program, and go up to $5,000,000. Applicants include all types of businesses having 500 employees or less.
Tax Increment Financing Guarantee Program (TIF)
The Tax Increment Financing Guarantee program promotes and stimulates the general economic welfare of various regions and communities in the commonwealth and assists in the development, redevelopment and revitalization of brownfield and greenfield sites in accordance with the TIF Act. The program provides credit enhancement for TIF projects to improve market access and lower capital costs through the use of guarantees to issuers of bonds or other debt. Funds are used for infrastructure and environmental projects for industrial enterprises and retail establishments; infrastructure, environmental and building projects for manufacturers, hospitals or convention centers and utilization of abandoned or underutilized industrial, commercial, military, previously mined institutional sites or buildings or undeveloped sites planned and zoned for development in accordance with any existing comprehensive municipal plan.
Water Supply & Wastewater Infrastructure Program (PennWorks)
The Water Supply and Wastewater Infrastructure Program (PennWorks) was established by the General Assembly, subsequent to the overwhelming approval by the electorate of a referendum in May of 2004. The program provides single-year or multiyear grants to municipalities and municipal authorities, and provides loans to municipalities, municipal authorities, industrial development corporations and investor-owned water or wastewater enterprises for economic development-related projects which construct, expand or improve water and wastewater infrastructure. The PennWorks Program is administered by the Commonwealth Financing Authority (CFA).
Watershed Restoration Protection Program (WRPP)
Act 13 of 2012 established the Marcellus Legacy Fund which allocates funds to CFA for watershed restoration and protection projects. The overall goal of the WRPP is to restore and maintain stream reaches impaired by the uncontrolled discharge of nonpoint source polluted runoff and ultimately to remove these streams from DEP’s Impaired Waters list. Funds are used for projects involving watershed restoration/protection; refurbishing, restoring or creating stabilization of stream banks or channels; repairing and maintaining existing watershed protection; creating Best Management Practices (BMP) and monitoring water quality.
Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.