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Pennsylvania\u2019s newly approved 2026-27 budget builds on Gov. Josh Shapiro\u2019s commitment to creating jobs and growing the economy that has garnered the state national recognition.\u00a0<\/p>\n
The pro-business, bipartisan budget that was approved by the General Assembly on July 12 reduces business taxes, invests in workforce development, prioritizes site readiness and small business corridors, and creates a new program to drive growth in the life sciences, a strategic sector for both Pennsylvania and the Lehigh Valley.<\/p>\n
\u201cWe have the only growing economy in the Northeast, and we jumped four spots on CNBC\u2019s \u201cTop States for Business\u201d rankings<\/a> \u2013 the highest Pennsylvania has been ranked in 15 years \u2013 and working with the private sector, we created more jobs than all but two states in the entire country,\u201d Shapiro said.<\/p>\n The $51 billion budget includes:<\/p>\n
The budget creates the $125 million Innovate in PA 2.0 program to encourage growth in life sciences by providing capital for promising startups, funding clinical trials, and supporting workforce development partnerships and regional venture studios. The program will be financed with the sale of tax credits to insurance companies.<\/p>\n
\nContinued reduction of the Corporate Net Income Tax rate, to 6.99%. The rate has dropped by 25% since 2022 and is scheduled to reach 4.99% in 2031. Businesses will save an estimated $2.9 billion with the latest tax cut.\u00a0
\nA 5.3% increase to $37 million for the state\u2019s primary flexible economic development funding source, PA First, which allocates project-based grants to support job creation and retention, workforce training, site development, and major private-sector investment.
\n$13 million for Manufacturing PA, a program that advances innovation and workforce development.
\n$20 million for Main Street Matters, which supports small business corridors.
\nAn increase of $10 million for career and technical education.
\nA 2.2% increase for Pennsylvania\u2019s unified economic development partnership, BusinessPA, led by the Department of Community and Economic Development, which works to recruit new businesses and help current businesses expand.
\n$10.88 million for Partners for Regional Economic Performance (PREP), a program that helps fund Pennsylvania’s network of regional economic development organizations, enabling partners such as Lehigh Valley Economic Development Corporation<\/a> (LVEDC) to help businesses grow, invest, and create jobs.
\nAn 18.8% increase, to $23.75 million, in Historically Disadvantaged Business Assistance.
\nA requirement that data centers using\u00a0more than 10 megawatts of power\u00a0annually disclose their energy and water usage.
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