A New Day in PA: Pittsburgh is Open for Business
Pittsburgh is at the heart of a new era of economic opportunity in Pennsylvania. With a dynamic mix of state-led reforms, a competitive tax climate, fast-track development tools, and a deep talent pool, the region is primed for growth, innovation, and investment. Whether you’re launching a startup, expanding operations, or relocating your company, Pittsburgh and Pennsylvania are ready to help you move faster, grow smarter, and go further.
“Pennsylvania’s corporate net income tax rate, once among the worst, will be one of the best by the decade’s end. …the state invested $500 million through the PA Sites program to make sites shovel-ready for large-scale investments like data centers, addressing our past lag in site investment. …Through bipartisan leadership, we’ve made significant strides in improving [our state permitting system], ensuring projects move from start to finish quickly, predictably, and transparently. Together, these efforts create healthy host conditions, giving businesses confidence to invest in Pennsylvania and grow.”
Matt Smith, Chief Growth Officer, Allegheny Conference on Community Development
Transformative Policy Changes Fueling Growth
Pennsylvania is implementing a multi-pronged strategy to enable businesses to get up and running faster, lower the cost of doing business, increase profitability, and grow in our region. The Commonwealth is now open for business and state public policy in recent years has created a better business operating environment
Corporate Net Income Tax Reductions
Pennsylvania is undergoing a historic shift — transforming from one of the highest corporate tax states to one of the most competitive by 2031.
- 2023: 9.99%
- Current rate: 7.99%
- 2031 Target: 4.99%
Benefits:
- Greater growth, more tax revenue and a predictable planning environment, ensuring clarity for capital budgeting and long-term investment planning.
- Lower tax burden
- Greater reinvestment potential
Raised Cap on Net Operating Loss (NOL) Deduction
The expanded NOL deduction provides businesses, particularly start-ups and companies in cyclical industries, with a better ability to offset losses, leading to an improved operating environment.
| Year | NOL Cap (% of taxable income) |
|---|---|
| 2025 | 40% |
| 2026 | 50% |
| 2027 | 60% |
| 2028 | 70% |
| 2029+ | 80% |
Benefits:
- Improves cash flow and risk absorption by better enabling profitable years to offset legacy losses, reducing tax obligations and smoothing earnings volatility.
- Enables stability and ongoing long-term growth: Firms recovering from downturns or launching capital-heavy operations gain significant leeway before absorbing losses.
SPEED: Streamlining Permits for Economic Expansion and Development
SPEED enables businesses to deliver projects faster, at lower cost, and with greater certainty.
- Faster Permit Approvals: Businesses can skip the DEP review queue by engaging DEP-approved external experts for initial permit reviews.
- Reduced review time means less budget uncertainty, so businesses can avoid cost overruns due to project delays.
- Streamlined processes allow faster revenue generation, especially for real estate, development, and infrastructure projects .
- SPEED sets clear timelines and response guarantees, and the new online permit tracking tools allow firms to monitor application status in real time.
Benefits:
- Saves Time: Cuts 30–40 business days off typical review timelines
- Saves Money: Lower carrying fees, less idle capital
- Provides Stability: Transparent status, predictability and accountability systems
PA Permit Fast Track Program
The PA Permit Fast Track Program streamlines permitting for high-impact economic development and infrastructure projects in Pennsylvania that require multiple permits from different Commonwealth agencies. The Office of Transformation & Opportunity provides inter-agency coordination and transparency for project sponsors and the public alike.
If your project is largescale, multi-jurisdictional, or strategically important to economic development or infrastructure, this program can save you time, reduce uncertainty, and help you move more confidently and competitively in Pennsylvania’s market.
- Benefits
- Faster permitting with fewer delays
- Clear, transparent timelines
- Coordinated multi-agency reviews
- Consistent review standards
- Stronger investment appeal
Pennsylvania Strategic Investments to Enhance Sites (PA SITES)
The PA SITES program enables fast, large-scale development of land and infrastructure-ready sites.
- Companies and landowners can receive grants and low-interest loans to transform land into “shovel-ready” commercial or industrial sites—funding infrastructure like water, sewer, grading and road access.
- With a $500 million allocation in the 2024–25 budget, it accelerates site preparation timelines and provides opportunity for businesses looking to locate or expand within the Pittsburgh region.
Pittsburgh: Where Innovation Meets Opportunity
Pittsburgh is more than just business-friendly — it’s innovation-forward. Named a Top 100 Emerging Startup Ecosystem (#31) by Startup Genome, the region blends world-class research universities, a skilled labor force, and cost-effective real estate into one of the most compelling innovation hubs in the U.S.
Business Advantages include: (Note: Add internal links to list below to related pages)
- 1.29 million-strong labor force
- Third most livable city in the U.S.
- Affordable housing and commercial real estate
- Vibrant cultural scene anchored by the Strip District and other iconic neighborhoods
Other Tax Rates & Incentives at a Glance
Sales Tax
- 6% state rate
- 1% local tax in Allegheny County
Business Incentives
Pittsburgh-area companies can benefit from:
- Tax-exempt financing
- Tax increment financing (TIF)
- Tax abatements
- Credits for R&D, job creation, and investment
- Temporary “expensing” provisions
These tools support startup growth, job creation, industrial redevelopment, and capital investment.
Why Choose Pittsburgh?
Pittsburgh delivers a one-of-a-kind blend of innovation, affordability, community and opportunity. For companies seeking a strategic location with the infrastructure, talent and policy environment to thrive — this is it.
- Business-friendly public policy
- Streamlined permitting
- Competitive tax climate
- Access to grants, loans, and incentives
- Unmatched livability and culture
A new day in PA means a new era of opportunity in Pittsburgh.
Let’s build your future here.