LERTA Tax Abatement

The Local Economic Revitalization Tax Assistance Act (LERTA), Act 76, provides tax breaks for commercial and industrial properties in specific areas to incentivize the redevelopment of aging or deteriorated properties. 

The LERTA abatement only applies to the assessed value of the improvements, not the existing value of the land or structure prior to redevelopment.

The Act provides an additional mechanism for local taxing authorities to contribute to the economic development of their respective jurisdictions through the exemption of real property tax.

Eligible projects include:

  • New construction or reconstruction, including alterations, additions, and repairs
  • Rehabilitation of deteriorated property for health and safety standards
  • Improvements for compliance with laws, ordinances, or regulations governing standards

For questions about LERTA, please email LERTA@AlleghenyCounty.US.

Downtown LERTA Program

Revitalizing Pittsburgh: Downtown LERTA Program Passes in Landmark Collaboration Among Pittsburgh School District, Allegheny County, and City of Pittsburgh

The passage of the Downtown LERTA (Local Economic Revitalization Tax Assistance) solidifies the commitment of all three taxing bodies – the Pittsburgh School District, Allegheny County, and the City of Pittsburgh – to collaborate and propel the revitalization of our city center forward. This innovative initiative is designed as a regional incentive to stabilize the tax body and prevent downtown’s economic downturn. The tax abatement incentivizes individuals and entities to contribute to affordable housing or job creation within downtown Pittsburgh.

Key Features of the Downtown LERTA Program:
  1. Application Window: The program offers a three-year application window, allowing the 10-year abatement term to commence after the application is approved.
  2. Annual Tax Abatements: Participants can enjoy annual tax abatements of up to $250,000 per taxing body for each of the 10 years of the program. The existing taxes are not abated.
  3. Eligibility Criteria: Eligibility is limited to those who create at least one of the following:
  • A commercial residential development with at least 10% of total residential units affordable to and occupied by  households earning at or below 50% of the Area Median Income (AMI), or
  • A commercial residential development with at least 60% of total residential units affordable to and occupied by households earning at or below 80% AMI, or
  • Commercial and industrial developments that increase the net number of full-time equivalent positions by at least 50 jobs.

4. Tax Relief: Achieving any of the eligibility outcomes provides tax relief of up to $250,000 per taxing body for 10 years.

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