Economic Development & Incentives
The Borough of Pottstown welcomes new and expanding businesses to operate and grow in our community. Located in western Montgomery County, along the Schuylkill River, the Borough is striving to create an environment that encourages all residents, businesses, and organizations to advance and thrive. Pottstown has a rich history, vibrant culture, and evokes a traditional town character through its notable architecture, tree lined streets, and charming downtown business district.
The Borough believes that excellent and accessible schools, expanding employment opportunities, growing our business infrastructure, celebrating our distinctive cultural, recreational, and natural amenities, enhancing public safety, and effectively cooperating with the public and private sector to form new partnerships, we will build a brighter economic future for the Borough of Pottstown.
The Borough offers many services to help assist businesses with development opportunities. In cooperation with Pottstown Area Economic Development Inc., (PAED), the Borough is implementing an economic strategic plan that focuses on job creation, commercial and industrial redevelopment, heritage tourism, arts and culture, inspiring residents and visitors to work, live, and visit in the Borough of Pottstown.
Local Economic Revitalization Tax Assistance (LERTA)
The Local Economic Revitalization Tax Assistance (LERTA) is a 7-year, Borough wide tax abatement on approved properties with completed improvements.
The Borough of Pottstown and the Pottstown School District have each adopted ordinances to provide for a beneficial investment incentive for local properties. This real estate tax abatement program applies to the increased taxes that would result from an increase in the assessed value of a property due to improvements that are completed through the permitting process. You must apply for the LERTA program before the improvements of the property have been completed. The property owner will continue to pay existing real estate taxes on the property, but they will not be fully taxes on the improvements until the abatement time period ends. Pottstown's LERTA provides tax relief to approved properties over seven years. In the first year, after an investor improves their property, the owner receives a 100 percent exemption on the taxable value of the improvements; by the seventh year, the reduction is 10 percent, and after that the LERTA relief ends and the owner pays the full amount of the taxes.
Qualified Opportunity Zones
The Tax Cuts and Jobs Act, which passed at the end of 2017, enabled governors to nominate certain census tracts to be designated as Qualified Opportunity Zones (QOZs). A QOZ is an economically distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. The tax incentive is designed to spur economic development and job creation in distressed communities by providing these tax benefits to investors. The Borough of Pottstown was approved for three designated QOZs.
Downtown Business Incentive Grant Program - PROGRAM CLOSED
The Borough of Pottstown has received Montgomery County Community Revitalization Program funding to provide existing or emerging businesses funding for capital improvements necessary for business creation or expansion into a vacant building or lot in the downtown business district.
The purpose of the Downtown Business Incentive Program is to attract customers and investors to the downtown business district as we create a positive, revitalized, and professional image for our community.
For questions please call 610-970-6512.
Homeownership Initiative Program - PROGRAM CLOSED
The purpose of the Homeownership Initiative Program is to attract additional homebuyers tot he Borough Core Redevelopment District through the provision of funds for desired capital improvements. High homeownership rates, well-maintained homes, and clean and safe neighborhoods are primary objectives of the Borough's economic development and revitalization plan.
Since 2003, the program has been funded through various Montgomery County grants and local sources. As a condition of the program, a lien stating that the homeowners must retain their property as owner occupied for a minimum of seven years. If the property is transferred, vacated, rented, abandoned, or conveyed before the seven year duration, a portion of the grant must be repaid to the Borough within 30 days of these occurrences. The amount the Borough will recapture is based on the amount of the lien less the amount forgiven during the use of the property as an owner occupied unit.
Any recaptured grant proceeds that have been repaid to the Borough as a result of activating any of these conditions set forth in the Promissory Note are to be returned into the Homeownership Initiative Program for reallocation to new homeowners.
PAED, Pottstown Area Economic Development
Pottstown Area Economic Development, Inc. (PAED) is a 501c(3) non-profit corporation originally formed in 1965, as Pottstown area Industrial Development, Inc. (PAID) to promote commercial and industrial development in Pottstown, Pennsylvania.
Over the decades, PAID's activities included development and sale of the 32 lot industrial complex known as the Pottstown Airport Business Campus, as well as the acquisition and resale of downtown commercial and retail properties for redevelopment. In 2010, based on recommendations contained in a 2009 Urban Land Institute report, the Borough of Pottstown, Pottstown School District, and Montgomery County Redevelopment Authority formed a partnership to reorganize PAID (now PAED) for the purpose of coordinating efforts and establishing economic development priorities in Pottstown. The corporation is governed by a Board of Directors with a full time Executive Director reporting to the Board.
PAED is developing, coordinating, and implementing an economic development strategy that will stimulate investment and sustainable growth in Pottstown, PA. PAED provides services to businesses and organizations seeking to invest, expand, or relocated including assistance with site selection, commercial and industrial real estate development, redevelopment, access to resources, and workforce development.
For more information, visit PAED or call Peggy Lee-Clark, Executive Director, at 610-326-2900.