Greater Philadelphia is a complex region, covering portions of two states, with hundreds of municipalities responsible for individual development and land use decisions. The region’s economy is similarly diverse with dozens of public– and private– sector organizations seeking to promote or attract a wide variety of sectors and specific interests. DVRPC’s process and strategies strive to address all the challenges and promote opportunities within the region.
Economic Development District (EDD)
DVRPC serves as the region’s Economic Development District (EDD) as designated by the Economic Development Administration (EDA) of the U.S. Department of Commerce. DVRPC staff acts as the designated liaison between EDA and our member counties and constituent communities. The primary purpose of the EDD is to implement the economic development activities and priorities set forth in the region’s CEDS.
As the Economic Development District for the nine-county region, DVRPC manages the regional Comprehensive Economic Development Strategy (CEDS) for Greater Philadelphia, satisfying provisions of the U.S. Economic Development Administration (EDA). The first Greater Philadelphia Economic Development Framework was formally approved by EDA as the regional CEDS in 2009 and recently updated in 2024.
Economic Development and Revitalization
Different levels of government are able to provide financial incentives as a market-based solution to achieve equitable investment in designated areas. Government leaders have relinquished short-term tax revenues in the hope these financial incentives will serve as the backbone for long-term economic growth. If such strategies succeed, they retain the ability to reinvigorate existing communities and neighborhoods and promote denser living and working arrangements consistent with smart growth principles. Properly used and placed incentives can implement the region’s CEDS goals.
Opportunity Zones
Greater Philadelphia has over 20 different areas available to entrepreneurs, corporations, or government officials that encourage new and expanded business opportunities. Economic development incentives include place-based opportunities such as Enterprise Zones, Empowerment Zones, or Keystone Opportunity Zones (KOZs); tax-incentives such as NJ’s PILOT or Revenue Allocation Districts (RAD) or federal tax credits such as Opportunity Zones or New Market Tax Credits.
Created through the federal 2017 Tax Cuts and Jobs Act, federal Opportunity Zones were designed to enhance impactful economic development in economically-distressed census tracts by deferring or reducing capital gains taxes for individuals and businesses who invest in qualified census tracts through qualified opportunity funds (QOF).
- Investors can defer a capital gain by investing in a QOF and will recognize the gain either on the date the investment is sold or December 31, 2026--whichever is earlier.
- Investments held in a QOF for at least 5 years are eligible for a 10% exclusion on deferred gains and investments held for at least 7 years are eligible for a 15% exclusion.
- Investments held for at least 10 years in a QOF will receive a permanent exclusion from the capital gains tax. However, this does not apply to the original capital gains prior to the QOF.
Opportunity Zones [0.7 MB pdf] were identified by the individual states using the following criteria:
- No more than 80% of the median family income (statewide) for census tracts within non-metropolitan areas.
- No more than 80% of the greater median family income (statewide) or the overall metropolitan median family income for census tracts within metropolitan areas.
Up to 25% of the census tracts of each jurisdiction that met these criteria could be nominated. An additional 5% of each jurisdiction could also qualify if they met a different set of income and geographic qualifications:
- A census tract contiguous with a low-income Opportunity Zone; and
- A median family income of no more 125% of the median family income of the adjacent Qualified Opportunity Zone.
Approximately 7,800 census tracts are Opportunity Zones, 12% of all census tracts, nationwide. Greater Philadelphia has 126 Opportunity Zones, less than 2% of the nationwide total. Due to the difference in population and land area between the two states-New Jersey and Pennsylvania-there are 28 qualified tracts in the 4 southern NJ counties of the region and 98 qualified tracts in southeastern Pennsylvania. Identified Opportunity Zones are located in the region’s developed communities and cities that have experienced a decline in population and jobs over the past 10 years. Unemployment rates for qualified tracts in Greater Philadelphia are above double the national rate of 5.3%, peaking in specific tracts of the region’s core cities of Chester (17.3%), Camden City (20.9%), Trenton (15.7%), and Philadelphia (36.4%).
Measuring Community Distress
U.S EDA regulations classify jurisdictions as “distressed” if the most recently available per capita personal income is 80 percent or less than the national average; the average unemployment rate over the most recent 24-month period for which data is available is at least one percentage point greater than the national average; or the area has a “special need,” as determined by U.S. EDA.
National Economic Resilience Data Explorer (NERDE)
The U.S. EDA and Argonne Lab developed the National Economic Resilience Data Explorer (NERDE) to help economic development practitioners conduct local economic recovery analysis. The NERDE provides data on economic distress criteria, COVID-19 impacts to local economies, and industry clusters. The data is searchable at the county or Economic Development District (EDD) level.
StatsAmerica provides economic data, distress indicators, and development metrics to assist with grant writing and strategic planning.