There are several tax abatement, tax credit, grant, and low-interest loan programs available to help you reduce your operating costs in NEPA. Mericle will arrange meetings between your leadership team and the officials who coordinate the following programs:
Local Economic Revitalization Tax Assistance Program (LERTA)
Every building constructed in Mericle’s CenterPoint Commerce & Trade Park receives a 10-year, 100% real estate tax abatement on improvements via the LERTA program. Learn more.
Job Creation Tax Credit Program (DCED)
$1,000 per-job tax credit program. The Pennsylvania Department of Community and Economic Development (DCED) sets the amount awarded for each project. The company must pay at least $10.88 per hour. The company must claim credits within five years and agree to stay in PA at least five years. Learn more.
Guaranteed Free Training Program
Grant funding provided by the Pennsylvania Department of Community and Economic Development (DCED) for essential skills and advanced technology training. Max amounts are up to $450 per trainee and $75,000 per company for essential skills training and up to $850 per trainee and $50,000 per company for advanced technology training. To be eligible, employees must be full-time and earn at least $10.88 per hour. Learn more.
Workforce Innovation and Opportunity Act
This federal program, which is administered by local Workforce Development Boards (WDBs), provides grants to train individuals who meet certain eligibility requirements such as those who recently lost their job or are underemployed. The program typically covers 50% of wages during training but WDBs have the authority to increase the funding to 75% in certain circumstances. Learn more.
Pennsylvania First Program
Pennsylvania Department of Community and Economic Development (DCED) grant/loan program for companies that create/retain a substantial number of jobs. Provides funding for real estate, M&E, job training, etc… The company must pay at least $10.88/hour. A $10 to $1 private investment match is required. The max assistance is $5,000 per job (discretionary). Learn more.
Pennsylvania Economic Development Financing Authority Tax Exempt Bond Program (PEDFA)
Tax-free bond program. Provides loans between $400,000 and $20,000,000. Helps manufacturers and non-profit 501(c)(3)s among others. Funds real estate, M&E, working capital, etc… The loan term can be up to 30-years but not more than 120% of the depreciable life of the assets being financed. PEDFA can finance up to 100% of eligible project costs but will usually loan less because the participating bank will likely require some equity. Can be in a pool or stand-alone. Companies must apply through an Industrial Development Authority (IDA) or an Industrial Development Corporation (IDC). Loan rates are typically 20% to 30% lower than commercial alternatives.Learn more.
Pennsylvania Industrial Development Authority (PIDA)
Low interest, fixed rate loans for real estate (max 15 years) and M&E (max 10 years), for manufacturing, industrial, office, and R&D firms and others. Companies must apply through a certified economic development organization. A typical interest rate in Pennsylvania in mid-2018 was 3.5%, but the rate is subject to change quarterly. Companies must retain/create jobs (up to $35,000 for retained jobs and up to $50,000 for created jobs). The max loan for real estate is $2.25 million and the max loan for M&E is $1.5 million. Learn more.
Luzerne County’s Business Development Loan Program
1.5% fixed interest loan between $50,000 and $500,000 for real estate, M&E and working capital. The company must create one full time equivalent job for every $35,000 borrowed. An Industrial Development Corporation (IDC) must apply on behalf of company. The term is typically seven or 15 years. Luzerne County may finance up to 50% of eligible costs. Learn more.