On Wednesday, November 12, Governor Josh Shapiro signed the 2025-26 Pennsylvania budget into law after a months-long impasse. The budget totals $50.1 billion in spending, an increase of 4.7% from 2024-25. The budget makes investments in job creation, business attraction, and workforce development without dipping into Pennsylvania’s Rainy Day Fund. Highlights for the business community include:
- Continuing the annual reduction of Pennsylvania’s maximum Net Operating Loss deduction by 10% until it reaches 80% in 2028
- Continuing the annual 0.5% reduction of Pennsylvania’s Corporate Net Income Tax to 7.99% until it ultimately reaches 4.99% in 2031
- $50 million increase to the Educational Improvement Tax Credit program
- $565 million to support public school adequacy funding in accordance with the 2023 Commonwealth Court ruling
- $105 million increase in Basic Education Funding
- $40 million increase in Special Education Funding
- $20 million for the Main Street Matters program
- $38 million for the Pennsylvania First program
- $17 million for the Ben Franklin Technology Development Authority Fund
- $20 million for the Historically Disadvantaged Business Assistance program
- $10.88 million for the Partners for Regional Economic Performance program
- $8.86 million for BusinessPA
- $25 million for child care worker retention and recruitment
- $30 million for student teacher stipends
- $15 million for workforce development
- $55.8 million for marketing to attract tourists
- $2.08 million for marketing to attract businesses
- $10 million for agricultural innovation development
- Ending Pennsylvania’s participation in the Regional Greenhouse Gas Initiative (RGGI)
- Permitting reforms to mandate quicker response times for certain air and water quality permits
“We are thrilled to see the General Assembly reach a compromise to approve a bipartisan budget. The investments made in child care, student teacher support, and the continuation of pro-growth tax and permitting reforms are all investments that support our region’s businesses,” said Ryan C. Unger, President & CEO of the Harrisburg Regional Chamber & CREDC. “We are grateful to our regional legislative delegation and the Governor for these investments and pro-growth policies, and we look forward to continuing to work with the administration and the General Assembly to move the Commonwealth forward.”
A full line-item breakdown of the 2025-26 Pennsylvania Budget can be found here.
About the Harrisburg Regional Chamber & CREDC
For 140 years, the Harrisburg Regional Chamber & CREDC has served as the region’s catalyst for economic prosperity. The organization combines business, community, and economic development services to enhance the region’s vitality and livability. The Chamber is a five-star accredited chamber through the U.S. Chamber of Commerce—a distinction held by fewer than 1 percent of chambers nationwide. CREDC is the Certified Economic Development Organization for Cumberland, Dauphin and Perry counties
The Capital Region Economic Development Corporation (CREDC) is the economic development arm of the Harrisburg Regional Chamber and the Certified Economic Development Organization (CEDO) approved by the Commonwealth’s Department of Community and Economic Development to perform economic development activities using Pennsylvania’s funding programs in Cumberland, Dauphin, and Perry counties.
