Governor Josh Shapiro has taken action over the last two years to reduce costs and lower taxes more than four times – easing the burden on families, seniors, and businesses across the Commonwealth.

The Governor has brought Republicans and Democrats together to save Pennsylvanians money and help them get ahead.

Lancaster, PA - On December 18, 2024, Governor Josh Shapiro visited small businesses in downtown Lancaster during the holiday season to highlight his Administration’s efforts to cut taxes, deliver real economic relief for Pennsylvania families, and invest in the Main Streets and small businesses that are driving economic growth in communities all across our Commonwealth.

The Governor visited with local business owners at Sweetish Candy, a Swedish candy store; J.A. Sharp Custom Jeweler, a jewelry store; and Madcap & Co., a gift shop featuring locally and USA-made goods. He was joined by Lancaster City Alliance President Marshall Snively and local legislators. Governor Shapiro heard firsthand how these efforts are driving economic growth and making a meaningful impact in the community.

“With the holiday season in full swing, my Administration is focused on the work we’ve done to deliver real relief to Pennsylvanians by cutting taxes and helping families keep more of their hard-earned money,” said Governor Shapiro. “We’re committed to uplifting small businesses and revitalizing the Main Streets – like this one here in downtown Lancaster and others all across the Commonwealth – that serve as the foundation of our communities. These investments are not just about today - they’re about building stronger, more vibrant economy where families and businesses can succeed for years to come.” 

Since taking office, Governor Shapiro has prioritized cutting red tape, creating opportunities for businesses, and fostering bipartisan solutions to provide financial relief for Pennsylvanians, including significant tax cuts that help families and businesses succeed. Over the last two years, the Governor has brought Republicans and Democrats together to cut taxes - saving Pennsylvanians money and helping them get ahead.

“Our small business and merchant community is the lifeblood of Lancaster and a major reason as to why this city is so special,” said Snively. “This city has over 300 places to eat, shop, and enjoy - which is more than most shopping malls. Our merchants work hard on special promotions with us including restaurant weeks, art walks and tons of holiday activities to showcase what this great city has to offer. We commend Governor Shapiro and his commitment to and support of small business. Programs such as Main Street Matters are key to the continued growth of Pennsylvania cities like Lancaster.”

Driving Economic Growth and Cutting Costs for Families

This holiday season, Pennsylvanians are feeling the impact of Governor Shapiro’s tax cuts - aimed at lowering costs and putting more money back in their pockets. Under his leadership, Pennsylvania has:

• Secured over $3 billion in private-sector investments by reducing red tape and making the Commonwealth a top destination for business growth. For example, the Administration reduced business filing processing times from eight weeks to just two days.

• Expanded the Child and Dependent Care Enhancement Tax Credit(opens in a new tab), delivering $136 million in savings to over 218,000 families, and introduced an Employer Child Care Contribution Tax Credit, enabling businesses to support employees’ childcare costs.

• Increased the Property Tax/Rent Rebate Program(opens in a new tab), benefiting over 550,000 seniors and people with disabilities with more than $311 million in assistance this year.

• Introduced the Student Loan Interest Deduction, helping graduates by allowing up to $2,500 of student loan interest to be deducted from their taxable income.

Building Stronger Main Streets

Governor Shapiro prioritized revitalizing Main Streets and small businesses across the Commonwealth in his 2024-25 budget(opens in a new tab), including through significant new investments:

• $20 million in the Main Street Matters Program to support small businesses and commercial corridors. This program builds on and modernizes the Keystone Communities Program, which has already supported neighborhoods and downtown districts across Pennsylvania.

• $500 million to support economic development, including $400 million to create the Pennsylvania Strategic Investments to Enhance Sites (PA SITES) Program to develop competitive, shovel-ready sites for business expansion or relocation in the Commonwealth. The program received bipartisan support to attract more businesses and create good-paying jobs in the state. 

Supporting Small Businesses and Workforce Development

Governor Shapiro’s tax reforms have also created opportunity for Pennsylvania businesses to grow, create jobs, and invest in their employees:

• The 529 Savings Account Employer Matching Contribution Tax Credit incentivizes businesses to match employee contributions to tuition savings, making higher education more affordable for families.

• The increase in the Net Operating Loss Deduction Limit ensures that businesses can reduce taxable income by up to 80 percent by 2029, keeping Pennsylvania competitive with other states.

• The launch of innovative programs like PAyback.pa.gov(opens in a new tab), the nation’s first online money-back guarantee system(opens in a new tab), brings accountability and transparency to the licensing process.

• The creation of the PA Fast Track Program(opens in a new tab) through Executive Order 2024-04 makes Pennsylvania the first state in the nation to implement a streamlined, project-based permitting system for major economic development and infrastructure projects.

In Lancaster, Marty Hulse, owner of Madcap & Co., and Representative Ismail Smith-Wade-El talked about the positive impact of these tax cuts and economic investments in the community. 

“We are particularly thrilled to celebrate the beating heart of our local economies: our independent retail small businesses. These businesses reflect the spirit and individuality of our towns, ensuring that every main street remains vibrant and compelling,” said Hulse. “Now, more than ever, we must rally to support these independent business owners facing challenges that range from economic uncertainties to rising operational costs. Together with leadership from Governor Shapiro, we can champion policies to spur innovation, enhance access to resources, and encourage local spending.”

"The sweeping legislation we pass isn’t just about policy - it’s about helping Pennsylvanians stay in their homes, put food on the table, and share more joy with their families during the holidays,” said Representative Smith-Wade-El. “Here in Lancaster, we’ve seen firsthand how investing in our main streets and communities brings people together and makes a real difference, regardless of political differences. That’s why I’m so proud of Governor Shapiro and the General Assembly for their efforts to strengthen our economy and support every Pennsylvanian."

Governor Shapiro’s investments in small businesses and Main Streets ensure that Pennsylvania’s downtowns and commercial corridors remain thriving hubs of activity, particularly during the holidays. This holiday season, the Governor encourages Pennsylvanians to visit Main Streets and support the small businesses that are the backbone of our communities.