Enterprise Zone Designation

The Commonwealth of Pennsylvania's Department of Community and Economic Development (DCED) administers the Enterprise Zone Program to stimulate targeted investment and revitalization in distressed and blighted industrial or manufacturing areas across the state. The program allows eligible municipalities and organizations to seek designation for Enterprise Zones (EZs), which then become focal points for economic development over a five-year period. Through this designation, communities are empowered to implement strategic plans to attract new business, stimulate investment, revitalize underutilized properties, and create employment opportunities in areas most in need of economic uplift. Enterprise Zones benefit from enhanced consideration across a wide range of DCED programs, including preferential treatment for businesses located within designated areas. These businesses can receive priority when bidding on state contracts and when applying for funding to remediate contaminated sites under Pennsylvania’s Act II. Further incentives include priority consideration for resources aimed at leveraging business investment and job creation and eligibility for a state liquor license. In cases where an EZ Revolving Loan Fund exists, the zone boundaries remain active as long as the fund is in operation, even after the initial five-year designation period ends. The program is available to a diverse range of applicants, including units of local government (counties, cities, boroughs, etc.), redevelopment authorities, nonprofit economic development organizations, community development corporations, and improvement districts. Nonprofit applicants must have at least two years of proven operational history relevant to economic development and must submit the two most recent audits with no findings. Designation proposals must clearly demonstrate the need for revitalization in the targeted area, referencing indicators such as poverty, crime, unemployment, blight, and economic instability. Applications must also articulate how the proposed EZ will contribute to the broader regional economy. To apply, prospective designees must first engage with the appropriate DCED Regional Office to determine eligibility and suitability for the program. If encouraged to proceed, the applicant then submits a complete application to the Enterprise Zone program resource account. The application process is rigorous and requires substantial documentation, including a detailed Five-Year Strategy, maps with clear zoning boundaries, a resolution from the municipality indicating support, financial commitments for a full-time program manager, and a governance structure reflective of the zone. Applications are reviewed by DCED staff, and decisions are made with final approval communicated to the applicant along with the official designation boundaries and dates. Applications are accepted on a rolling basis throughout the year. The DCED's Innovation & Development Zones Office oversees the program, and all inquiries can be directed to their office in Harrisburg. Contact details include a program phone line and a dedicated email address. Additionally, regional DCED offices serve as the first point of contact and support for applicants, with detailed regional office contacts provided within the guidelines. Requests for boundary extensions can be made post-designation if exceptional opportunities arise that were not foreseen in the original application. Overall, the Enterprise Zone Program offers a structured pathway for economically distressed communities in Pennsylvania to revitalize targeted areas through comprehensive planning, public-private collaboration, and prioritized access to development resources. The program’s rigorous standards and strategic framework ensure that only those communities most ready and capable of leveraging the designation will receive this critical economic development tool.