Tax Incentives
Local Economic Revitalization Tax Assistance (LERTA)
Local Economic Revitalization Tax Assistance (LERTA) decreases real property taxes, allowing municipalities to redevelop a deteriorated area and developers to pursue a specific development project.
Tax Increment Financing (TIF)
Tax Increment Financing (TIF) provides for incremental increases in real property tax revenues within a specific area, over a term of up to 20 years, generating funds available to finance improvements necessary to facilitate new development.
Tax Exempt Financing
Tax Exempt Financing programs enable borrowers to fund large-scale projects in a timely, cost-effective manner. The funding covers a broad variety of uses, typically with longer repayment terms and lower interest rates than generally are available. Proceeds can be applied to such capital projects as land acquisition, construction of new facilities, additions or renovations to existing structures, and equipment purchases. Funding also may be used to refinance certain outstanding debt, credit enhancement features and the costs of project financing.
Programs Include:
- Industrial Development Authority (IDA): Issues tax-exempt obligations on behalf of small manufacturing companies and 501c(3) nonprofit organizations including, but
not limited to, libraries, museums and charter schools. Financing generally is offered at below-market-rate interest, with repayment terms of up to 30 years.
- Hospital Development Authority (HDA): Issues tax-exempt obligations for projects involving hospitals, health centers, personal care facilities, nursing homes and other
entities dedicated to health care.
- Higher Education and Building Authority (HEBA): Issues tax-exempt obligations on behalf of higher learning institutions, working with colleges, universities and other
educational organizations.
- Redevelopment Authority of Allegheny County (RAAC): Issues tax-exempt obligations to fund redevelopment projects involving tax increment financing.