Tax Abatement Incentives
The City of Pittsburgh offers a variety of tax abatement incentives for commercial or residential developers including LERTA, Act 42 and Visitability.
Abatement of City, County and School taxes may be available for commercial or residential renovations or redevelopment projects in the City of Pittsburgh. Program eligibility requirements include project type, size of project, and location.
Information contained on this website and any comments or information provided by the URA are provided solely for general informational purposes and does not constitute legal, accounting, or tax advice. Please contact your own attorney, accountant, or tax professional with any specific questions related to tax abatements.
Please note that the City of Pittsburgh has amended its tax abatement programs effective June 30, 2020.
For information about the new abatement programs, visit the following links to legislation:
Ordinance amending and supplementing the Pittsburgh Code of Ordinances at Title Two: Fiscal, Article IX: Property Taxes, Chapter 265: Exemptions for Residential Improvements, Sections 265.04 and 265.09, and Chapter 267: Exemptions for Industrial and Commercial Improvements, Sections 267.03 and 267.07 to change the effective date to June 30, 2020.
The program information below remains effective until June 30, 2020. This information was last updated May 31, 2019.
The attached chart outlines all seven programs, including the eligibility requirements and the amount of tax benefit for each program. Staff at the URA can work with you to determine which program(s) are applicable to your specific project.
The seven programs fall into three categories: LERTA, Act 42, and Visitability.
Local Economic Revitalization Tax Act District (LERTA) was created to improve the economic and business climate of certain residential and commercial districts by lessening the tax burden on new development. The URA will work closely with developers who wish to take advantage of this incentive by explaining the application process and making LERTA as simple as possible to use.
This program offers a 10-year tax credit for the City of Pittsburgh (up to $150,000) and City of Pittsburgh School District (up to $250,000). This program applies to rental residential and hotel properties that occupy former commercial or industrial sites located within four neighborhoods in and around Downtown.
Residential Enhanced LERTA
This program offers a 10-year tax credit for the City of Pittsburgh (up to $2,700). This program applies to for-sale residential (condominium units) that occupy former commercial or industrial sites located within four neighborhoods in and around Downtown.
This program offers up to $50,000 in a City of Pittsburgh tax credit as a result of the new construction or renovation of commercial space. This is a citywide program.
Local Economic Stimulus
This program offers a 10-year tax credit for the City of Pittsburgh (up to $250,000). This program applies to residential, commercial, or industrial future uses and is citywide. Total construction costs must be greater than $1,000,000.
Act 42 Residential
Act 42 Residential is a 100 percent, 3-year assessment reduction up to $86,750 in assessed value due to new construction or up to $36,009 of assessed value due to renovation costs for City of Pittsburgh and City of Pittsburgh School District. The program applies to for-sale or rental residential properties located throughout the city.
Act 42 Enhanced Residential
Act 42 Enhanced Residential is a 100 percent, 10-year assessment reduction up to $250,000 in assessed value due to new construction or renovation costs for City of Pittsburgh and the City of Pittsburgh School District. The program applies to for-sale or rental residential properties located in 28 defined neighborhoods.
This program offers tax credits as incentives for developers of new construction or renovation housing projects to build access for disabled individuals. The total amount of the tax credit granted shall be the lesser of $2,500 (over a period of 5 years), or the total amount of all increases in property taxes levied by Allegheny County/City of Pittsburgh as a result of the construction/renovation that is eligible for the Residential Visitability Design Tax Credit. This is a citywide (and countywide) program.