Pennsylvania approves $71.6 million in tax credits for business contributions to 443 community projects
The Neighborhood Assistance Program awards, announced Oct. 19, let businesses claim credits of up to 95 percent of what they give to approved projects in housing, community services, crime prevention, education and job training.
Lancaster. Pennsylvania has approved $71,598,142 in Neighborhood Assistance Program tax credits for 443 projects meant to improve distressed neighborhoods and help low-income residents, Rick Siger, secretary of the Department of Community and Economic Development, announced on Oct. 19 in Lancaster.
Neighborhood Assistance Program tax credits for 2026-27, by part of the program
The program does not make grants. It gives tax credits to businesses that contribute to approved projects, most of them run by nonprofit organizations, and a credit can reach 95 percent of the contribution. Gov. Josh Shapiro's 2026-27 budget set aside $72 million for it.
How the credit works
Any charitable organization with 501(c)(3) status can apply. Businesses can apply only under the Enterprise Zone Program, one of the five parts. The rate depends on the part: up to 65 percent for the basic program and for the Charitable Food Program, up to 90 percent for Special Program Priorities, which address problems the state has named as priorities, and up to 90 or 95 percent for the Neighborhood Partnership Program, collaborations of five years or more.
A business that gives to three or fewer projects can receive up to $1 million in credits in a program year, and up to $2.5 million for four or more. After contributing, it sends the department proof of the contribution and receives a certificate it can use against its taxes in the current year and the five years after, the department says.
Where the credits go
Special Program Priorities drew the largest share, $28.2 million, followed by the Charitable Food Program and the Neighborhood Partnership Program, about $17.4 million each. The Southwest had the most projects, 98, and the Southeast the largest regional total, $18.5 million. Food banks and pantries received some of the largest single awards through the food program.
Mr. Siger made the announcement at Lancaster Hub, which receives $31,050 for its Homeless Outreach Center to expand services for city residents experiencing homelessness, including connections to housing, jobs, health care and basic needs. Rebuilding Together Philadelphia receives $270,000 to repair the homes of 15 low-income homeowners in Northwest Philadelphia who are over 62 or living with a disability. Lackawanna College receives $162,500 to expand its Bethlehem Center and train more than 250 students in the trades and technology, and the Erie Cancer Wellness Center $16,250 to renovate its building for patients undergoing treatment.
The department did not say when the next round opens. Applications usually open in the spring for about 90 days, and contributions to approved projects must be made in the program year, July 1 to June 30. Since Mr. Shapiro took office, the program has awarded more than $250 million in credits to 1,500 projects, the department said.
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