A Creative Way to Implement Strategic Financial Opportunities

The Local Economic Revitalization Tax Assistance (LERTA) Act, Act 76 of 1977, P.L. 237; 72 P.S. § 4722, is a creative way to implement strategic financial opportunities for communities that desire property owner driven revitalization. Many Pennsylvania municipalities have developed a LERTA program for their communities to encourage this beneficial reinvestment. Municipalities that have LERTA sites grant property owners a tax incentive to improve their properties within an area designated for revitalization.

The geographic boundaries of Westmoreland County’s LERTA opportunities include areas in New Stanton Borough and North Huntingdon, Penn, South Huntingdon and Unity Townships.

View LERTA Opportunities in Google Map

While the specific terms of the tax abatement is decided at the local level, state legislation enables municipalities to exempt the value of all improvements made to a property (i.e. an exemption on the assessment attributable to the actual cost of such new construction or improvements) from local taxes for up to 10 years. Unlike other tax-abatement programs, properties still pay a local tax, but during the abatement period do not see any increase in local taxes based upon the value of renovations made to the property within the LERTA boundary. The property owner is still obligated to pay property taxes on the assessed value of the land. Note: If approved, LERTA applicants receive the full term of incentives, even if the LERTA application period expires before the incentive term does.