EASTON, Pa. — Northampton County is on track to extend tax incentives for redevelopment in parts of South Bethlehem.
The program, which falls under Pennsylvania’s Local Economic Revitalization Tax Assistance Act (LERTA), designates parts of the city as “deteriorated,” and grants developers an exemption from some property taxes on what they build there.
- Northampton County Council is ready to extend tax incentives for redevelopment of South Bethlehem
- The measure would cover parts of South Bethlehem
- Builders who improve the land would pay no taxes on redevelopment the first years, increasing by 10% a year until reaching full taxation after 10 years
Builders still would pay taxes on the land’s value without their improvements.
City officials presented the proposal to Northampton County Council’s Economic Development Committee on Thursday.
The council must approve the tax breaks; Bethlehem’s city council and school district have already signed off.
Bethlehem has offered tax breaks through the program before. This year’s new proposal extends tax cuts through 2027 for a smaller area of the city’s South Side, and adds new incentives for affordable housing and sustainable construction.
Qualifying developers would pay no property tax on what they build for the first year, then increasing 10% each year. The tax break expires after 10 years.
Bethlehem City Council added new requirements to the program in the measure, including a requirement that 10% of a housing development’s units be affordable housing.
Council also enriched the tax break for developments that meet Leadership in Energy and Environmental Design (LEED) sustainability requirements, set by the U.S. Green Building Council.
LEED Platinum certification, the organization’s highest level, exempts a developer from all property taxes on their construction for 10 years.
“LERTA is one of the few tax incentives I think is appropriate to use in order to help us drive the economic engine of Northampton County."Northampton County Executive Lamont McClure
County Executive Lamont McClure told the county council committee he supports the proposal.
“LERTA is one of the few tax incentives I think is appropriate to use in order to help us drive the economic engine of Northampton County,” McClure said.
“You can't drive the economic engine without the beating heart of Northampton County, and that's the city of Bethlehem.”
An ordinance conferring the council’s approval is set to be introduced Thursday, and voted on later this month.
