The Build to Scale Reauthorization Act of 2026 extends federal funding for the Regional Innovation Program through fiscal year 2030, providing up to $50 million annually to support economic development in specific areas. The bill defines eligible partners as state or nonprofit organizations that offer direct financing, commercialization services, and entrepreneurial support to local businesses. It mandates that the federal government contribute no more than 50 percent of project costs, with an additional 40 percent available based on regional needs, and requires outreach to rural communities and areas facing economic distress. Additionally, the legislation allows agencies to use unspent funds from previous years and updates the program's focus to include specific initiatives aimed at accelerating innovation.
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Economic Development
This bill creates a new tax incentive program to encourage investment in specific areas designated for maritime industries, such as shipyards and ports. It allows certain census tracts identified by the Secretary of Commerce, in consultation with federal officials, to be treated as qualified opportunity zones, which offers tax benefits to investors who put money into businesses operating within those areas. To qualify, the businesses must be directly involved in maritime activities like building or repairing vessels, and the program is limited to a maximum of 100 designated zones. The changes to the tax code will take effect after December 31, 2026, with the initial selection process for these zones beginning by July 1, 2027.
The Increasing Opportunity For Reindustrialization Act designates census tracts containing former Department of Defense installations as Qualified Opportunity Zones. This change allows communities near closed military bases to access federal tax incentives intended for economic development, even if they do not meet the standard low-income requirements. The bill specifically amends the Internal Revenue Code to include these areas in the program and increases the number of eligible zones per state to accommodate them.
This bill amends Pennsylvania's tax code to create a new economic development tax credit designed to support business growth and infrastructure improvements within the state. To receive this credit, entities must hire only Pennsylvania residents, use 100% materials sourced from within the state or the United States, and comply with prevailing wage laws. The Department of Community and Economic Development is tasked with auditing recipients annually to ensure they meet these requirements, and any entity found non-compliant must repay the full amount of the tax credit.
HB 981 amends state laws to allow local governments to create joint economic development districts where they can levy income taxes on businesses and employees operating within those areas. The bill defines specific rules for forming these districts, such as requiring the participating areas to be geographically connected and ensuring that no residents live inside the district boundaries. It also establishes how different local governments can share costs and revenue generated from these taxes to fund improvements and services. Additionally, the legislation clarifies which types of entities and individuals are considered businesses or owners for tax purposes and sets standards for what counts as mixed-use development.
To enact section 9.71 of the Revised Code to disallow companies associated with certain foreign countries from receiving state or local economic incentives and to name this act the Ohio Business Investment Act.
Senate, July 16, 2026 -- Text of the Senate amendment to the House Bill relative to economic development in the commonwealth (House, No. 5576) [This legislation authorizes $325,100,000 in bond obligations and $100,000,000 in direct fiscal year 2026 appropriations from the Education and Transportation Fund.]
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Economic Development
