Pennsylvania Extends Property Tax Abatement Period in Philadelphia County, Allegheny County, and the City of Pittsburgh

On November 12, 2025, Governor Josh Shapiro and the Commonwealth of Pennsylvania enacted its Fiscal Year (FY) 2025–26 budget, advancing a series of economic development and tax policy initiatives aimed at supporting long-term capital investment throughout the state. As part of the budget, Pennsylvania has approved an expansion of the Local Economic Revitalization Tax Assistance (LERTA) program, increasing the maximum allowable property tax abatement period from 10 years to 20 years in Philadelphia County, Allegheny County, and the City of Pittsburgh (“jurisdictions”). This extension enhances these jurisdictions’ ability to attract major redevelopment and new construction projects by providing a longer runway for recovering upfront capital costs.

Key Changes

Historically, Pennsylvania’s LERTA program has allowed local taxing authorities to offer tax abatements on the value of improvements made to industrial, commercial, or certain residential properties for up to 10 years. The newly approved budget doubles the maximum abatement period in these jurisdictions to up to 20 years, enabling them to adopt longer abatement schedules to support high-cost or long-term redevelopment projects.

Why Ryan?

LERTA implementation can require coordination with multiple local taxing authorities, and Ryan has extensive experience guiding clients through this process. Ryan has a proven history of securing these local approvals and helping clients capture millions of dollars in property tax savings through successful LERTA implementation. If you have questions about how this or other tax matters will impact your business in the Commonwealth of Pennsylvania, reach out to the Ryan contacts listed below.

TECHNICAL INFORMATION CONTACTS:

Mike Falleroni
Principal
Ryan

Megan McNulty
Manager
Ryan

Mike Correa
Senior Consultant
Ryan

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals.