The program statute was changed this year to provide more state funding to the CRIZ zones. As a result, funding levels are no longer determined using a baseline for the entire zone. Under Act 84 of 2016, signed into law by Governor Tom Wolf on July 13, funding is calculated on a per business basis by comparing each business's reported tax payments to that business's established baseline. Declining tax payments below a business's baseline are not deducted from the increment as in the previous years.
Additionally, the eligible state taxes expanded to include the hotel occupancy tax and personal income tax on business activity not withheld by the business. Since businesses filed 2015 CRIZ reports before the statute was enacted, the personal income tax payments will be added to next year's CRIZ report and certification.
The funds will be paid to the local development authority for the zone, and can be used for debt service, property acquisition, new construction and other costs related to development projects in the zone.
Borough of Tamaqua: The 2015 revenue that will be paid to the CRIZ in Tamaqua, Schuylkill County is $189,900. This is the first year that Tamaqua will receive funds through the CRIZ program.
- The payment is attributable to $67,035 from eight new businesses and $122,864 in incremental growth from 105 existing businesses.
- Of the 194 businesses in the zone, 168 required reports were filed.
- The maximum state borrowing permitted is $1.2 million, representing 50 percent of the 2015 state tax baseline of $2.4 million.
City of Bethlehem: The 2015 revenue that will be paid to the CRIZ in Bethlehem is $43,654.
- The payment is attributable to two new businesses.
- All 38 businesses in the zone filed the required reports.
- The maximum state borrowing permitted is $56,548, representing 50 percent of the 2015 state tax baseline of $113,097.
City of Lancaster: The 2015 revenue that will be paid to the CRIZ in Lancaster is $3,400,253.
- The payment is attributable to $258,844 from 41 new businesses and $3,141,409 in incremental growth from 433 existing businesses.
- Of the 672 businesses in the zone, 553 required reports were filed.
- The maximum state borrowing permitted is $6.2 million, representing 50 percent of the 2015 state tax baseline of $12.4 million.
The CRIZ Program is administered by the Department of Revenue, the Department of Community and Economic Development (DCED) and the Governor's Budget Office. More information about the program may be found at www.revenue.pa.gov, under General Tax Information, then Incentives, Credits & Programs. Additional information is found at the DCED website, www.newpa.com. Select the tab for Programs & Funding.
MEDIA CONTACT: Kevin Hensil, 717-787-6960
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SOURCE Pennsylvania Department of Revenue