Harrisburg, PA — The Shapiro Administration is reinvesting $23.9 million in tax revenues to support economic development and revitalization in five Pennsylvania cities, Pennsylvania Department of Revenue Secretary Pat Browne announced today. Through the City Revitalization and Improvement Zone (CRIZ) program, the funding will help communities revitalize downtowns, redevelop vacant and rundown properties, attract new businesses, and create jobs.
The distribution of funding marks a historic milestone, as Erie and Reading are receiving funds through the CRIZ program for the very first time. Governor Josh Shapiro paved the way for both cities to participate in the program when he signed the 2024-25 bipartisan budget into law. This was the first time that new qualified communities could participate in the program since its inception in 2013.
“Since its beginning, the CRIZ program has delivered a total of nearly $126 million to participating communities, helping them to attract development, revitalize their downtowns, and bring new jobs to their regions,” said Secretary Browne. “This program is a proven model that has been a critical tool for growth in Bethlehem, Lancaster, and Tamaqua. Now we’re seeing that successful blueprint being used to help Erie and Reading revitalize their cities. It’s because of Governor Shapiro’s leadership that these communities are in a much better place to turn the corner and drive economic development.”
The $23.9 million in CRIZ funding is based on activity from January 1 through December 31, 2025. The funding will go to:
- Bethlehem (Lehigh/Northampton Counties) – $2,448,093.82
- Erie (Erie County) – $6,905,267.34
- Lancaster (Lancaster County) – $12,063,313.26
- Reading (Berks County) – $185,057.97
- Tamaqua (Schuylkill County) – $2,272,547.82
About the CRIZ Program
The City Revitalization and Improvement Zone (CRIZ) program, modeled after the transformative Neighborhood Improvement Zone (NIZ) program administered in Allentown, was established by Act 52 of 2013 and amended under Act 84 of 2016 and Act 56 of 2024. Its purpose is to spur new growth in cities that have struggled to attract development, helping to revive downtowns and create jobs for the residents in the regions. A CRIZ is an area of up to 130 acres, comprised of parcels designated by an authority to capture state and local taxes for the purpose of improvement and development in the designated CRIZ zone.
The program is similar to a tax incremental financing program. It is structured to protect the existing state and local tax base, while providing incremental funding for tax revenues based on new growth generated over and above an established baseline.
The funds are paid to the local development authority for the zone, and can be used for debt service, property acquisition, new construction, and other costs related to development projects in the zone.
The CRIZ program is administered by the Department of Revenue, the Department of Community and Economic Development (DCED), and the Governor’s Budget Office.
Pennsylvania’s Business Climate and Growing Economy Is Earning National Recognition
Since taking office, Governor Shapiro has made Pennsylvania more competitive — attracting over $43 billion in private-sector investment while creating nearly 29,000 good-paying jobs across the Commonwealth and earning national recognition.
- Pennsylvania is the only state in the Northeast with a growing economy, based on analysis done by Moody’s Analytics Chief Economist Mark Zandi.
- The Commonwealth was recently ranked the top state for business in the Northeast by CNBC in its Top States for Business in America rankings ― the highest Pennsylvania has been ranked in 15 years.
- Last year, according to a new analysis of data from the U.S. Bureau of Labor Statistics, the Commonwealth ranked third in the nation for job growth.
- Area Development ranked Pennsylvania among the top 20 “Best States for Business” — the only Northeastern state to make the list — and placed the Commonwealth in the top 10 for “Site Readiness Programs."
- Site Selection Magazine named Pennsylvania one of the top business climates in the nation.
- Data from the U.S. Bureau of Labor Statistics shows that Pennsylvania ranks among the top states in the nation for five-year new business survival.
- Learn more about the Shapiro Administration’s efforts to support Pennsylvania’s workers and businesses and spur the economy to build a stronger, more competitive economy for all Pennsylvanians.