Businesses and organizations in the Lehigh Valley will receive state tax credits to expand and improve facilities, hire new workers, improve communities, and develop a future workforce.
The tax credits come through the Neighborhood Assistance Program, which assists low-income individuals and improves distressed areas.
“By encouraging businesses to make impactful investments in their local communities, the Neighborhood Assistance Program is driving investment to worthy causes and helping improve the lives of our fellow Pennsylvanians. This program is a great example of the impact we can have when we connect the dots between the private sector, public sector, and nonprofits – and my administration will continue to support and grow these kinds of partnerships,” Gov. Josh Shapiro said.
Here’s a look at some of the projects being funded in the Lehigh Valley.
Business Expansion, Renovation & Job Creation
Tax credits are going to three businesses in Bethlehem's Enterprise Zone.
“The Enterprise Zone program has assisted in attracting significant private sector investment into projects in the city of Bethlehem,” said Mayor J. William Reynolds. “We are excited to work closely with Governor Shapiro and the Pennsylvania Department of Community & Economic Development to maintain an attractive investment climate for businesses interested in locating and expanding. These projects are key to providing career opportunities for our residents.”
National Magnetics Group, which manufactures technical ceramics (magnetic and advanced materials) and powdered iron cores for uses in medicine, wireless technology, science, aviation, and automotive industries will receive $43,822 in tax credits. The company is investing more than $700,000 to expand production capabilities for their advanced material product line. National Magnetics Group plans to purchase and install new equipment, upgrade their current power supply, create a new inspection room, retain the 15 employees dedicated for this new line of business, and create an additional five jobs as business permits.
“We are pleased that the Governor has recognized the benefit of helping small business stay competitive in this challenging economic environment,” said CEO Paul Oberbeck. “Our expansion will allow us to grow our business, hire more employees and meet the needs of our customers. These tax credits will help defray the cost of our investment.”
Roberts Oxygen Co., which provides compressed industrial and medical gases, specialty gases and equipment, welding equipment and consumables, and technical support services, will receive $103,500 in tax credits to renovate, expand, and improve buildings. The investment will create and retain two full-time jobs. The company is investing $1.6 million to improve the current 7,600-square-foot facility to improve distribution of compressed gases and welding supplies to customers.
“This important business assistance program provided by the Enterprise Zone tax credits will enable us to add to our capabilities to service our customers that include medical, beverage, industrial, commercial, manufacturing, institutional, and construction customers in the Bethlehem area,” said Dave Garner, the company's Philadelphia Regional Manager.
United States Cold Storage will receive $250,000 in tax credits. The company is investing $80 million to expand their current facility by 7.8 million cubic feet. The expansion will consist of additional temperature-controlled storage space, 23,634 pallet positions, and automation that will enhance overall facility efficiencies. The company plans to hire 30 new employees while retaining 180.
“USCS has been a business partner in the city of Bethlehem since 2004, and appreciate their continued support and collaboration,” said General Manager Mitch Harper. “The EZ tax credits are both meaningful and helpful as we continue to invest in the community and its people.”
Business District Enhancements
Community Action Committee of the Lehigh Valley will receive $128,000 in tax credits to coordinate community and economic development in the boroughs of Bangor, Pen Argyl, Portland, and Wind Gap in Northampton County. The project will enhance inter-municipal cooperation; improve the appearance and utilization of commercial districts; upgrade the quality of the housing stock; increase homeownership rates; reduce commercial and residential vacancies; and lower poverty and unemployment levels.
Workforce Development
Hispanic Center Lehigh Valley in Bethlehem will receive $112,500 in tax credits for various programming, including a new bilingual Cultural and Linguistic Workforce Development Center.
Growing Entrepreneurs
Community Action Development Corp. of Allentown will receive $520,000 in tax credits for student programming, including partnering 10 youth with local entrepreneur mentors.
STEAM Skills Training
Da Vinci Science City in Allentown will receive $225,000 in tax credits to outfit a Fab Lab and four classrooms in the Da Vinci STEAM Learning Center. The project will implement specialized equipment and furnishings needed to offer on-site and off-site digital fabrication workshops and to implement a STEAM Career Pathways Certificate Program, which will provide students with skills and internship experiences to prepare them to pursue family-sustaining-wage jobs. It is anticipated that this program will result in 136 direct job placements over the first 10 years.
The Neighborhood Assistance Program provides tax credits to businesses that contribute to nonprofit organizations’ efforts to revitalize communities. Businesses can receive tax credits of up to 80 percent on the contributions they make to a qualifying community project.
“The NAP helps our low-income areas in a way that very few state or federal programs do – by promoting and encouraging the public-private partnerships that put communities on the right track to fiscal health and long-term prosperity,” said Rick Siger, Secretary of the Pennsylvania Department of Community and Economic Development.
Statewide, $36 million in tax credits will support 261 projects.
(Top photo by Lehigh Valley Economic Development Corp. Bottom photo courtesy of Da Vinci Science Center)