Tamaqua to receive $1.6M from CRIZ program
KAYLEE LINDENMUTH / SHENANDOAH SENTINEL FILE - Downtown Tamaqua is seen in 2020.
TAMAQUA – This borough will receive just under $1.6 Million from the City Revitalization and Improvement Zone (CRIZ) program, the state announced Tuesday.
The funds are taxes paid to the state that are attributable to the zone.
The funding being returned is based off the period from January 1, 2022 to December 31, 2022.
The CRIZ program functions by capturing state and local taxes that are returned to a designated zone up to 130 acres for the purpose of improvement and development.
Overall, the state says the CRIZ program has delivered a total of more than $70.2 million since its inception in 2013, spurring new growth in cities and reviving struggling areas while creating jobs.
“This program is generating critical economic growth right in Pennsylvanians’ backyards,” Secretary of Revenue Pat Browne said. “In the decade that this program has existed, we are seeing encouraging results from the investments that have been made in the participating communities.”
Tamaqua is set to receive $1,596,307.50, which the state says is attributable to $835,904.17 in state taxes remitted by 39 new businesses within the program, as well as $748,715.46 in incremental growth from 129 existing businesses, and $11,687.87 from eight construction contractors.
The program was established by Act 52 of 2013 and amended under Act 84 of 2016 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 per business and new tax.
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.
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