In December 2024, Aaron Pitts, Chief Commercial Officer of Pennsylvania's Department of Community and Economic Development (DCED), outlined the state's ambitious economic development strategies during an interview. Pennsylvania has recently passed a bipartisan budget that includes significant investments aimed at revitalizing its economic framework for the first time in decades [eb6cbf92]. Governor Josh Shapiro's administration has made notable strides in improving business efficiency, reducing processing times from eight weeks to just two days, which is expected to attract more businesses to the state [eb6cbf92].
The state is also planning to cut the corporate net income tax in half, further incentivizing business operations and investments [eb6cbf92]. Additionally, the $400 million PA SITES program, approved last year, aims to enhance the inventory of business sites available for development, targeting growth industries such as manufacturing, agribusiness, life sciences, technology, and energy [eb6cbf92].
Pitts emphasized the importance of Pennsylvania's highly regarded education system, which contributes to a strong workforce capable of meeting the demands of these targeted industries [eb6cbf92]. The state's abundant natural resources and robust infrastructure also support business operations, making it an attractive location for new investments [eb6cbf92].
Looking ahead, Pennsylvania's 20-year economic development strategy is designed to position the state among the Top 10 states for business, reflecting a long-term commitment to economic growth and sustainability [eb6cbf92]. Furthermore, the quality of life in Pennsylvania is enhanced by its diverse environments and rich cultural offerings, making it a desirable place for both businesses and their employees [eb6cbf92].
These developments come on the heels of recent tax cuts introduced by Governor Shapiro, which aim to support families and small businesses across the state. The new Employer Child Care Contribution Tax Credit allows businesses to claim up to 30% of their contributions towards employee childcare costs, addressing a significant financial burden for many families [bdc09f0c]. The Child and Dependent Care Tax Credit has also been expanded to $2,100 for families, providing further financial relief [bdc09f0c].
In addition to these tax initiatives, the Pennsylvania Film Office announced $9.2 million in tax credits for film and television projects, expected to generate over $36.7 million for the state's economy and support nearly 2,200 jobs [d92223fc]. This reflects a broader strategy to bolster various sectors within the state, contributing to its overall economic resilience [bdc09f0c][d92223fc].
Overall, Pennsylvania's recent economic strategies and tax reforms illustrate a comprehensive approach to fostering growth, supporting families, and enhancing the state's business climate [eb6cbf92][bdc09f0c].