Pennsylvania 2018 GASB-77 Data


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How much did KOZ and LERTA cost?

GASB-77, or Statement No. 77 of the generally accepted accounting principles, requires governments to disclose the amount of foregone tax revenue due to tax abatement programs.

Updated: September 17, 2019


In 2018, ten programs have led to reduction in state tax revenue:

  1. Coal Refuse Energy and Reclamation Tax Credit
  2. Education Tax Credit
  3. Film Production Tax Credit
  4. Keystone Innovation Zone (KIZ) Program
  5. Keystone Opportunity Zone (KOZ) Program
  6. Neighborhood Assistance Programs
  7. Neighborhood Improvement Zone Program
  8. Opportunity Scholarship Tax Credit
  9. Resource Enhancement and Protection Tax Credit
  10. Tax Credit for New Jobs

In total, $411 million was abated – the 5 th highest among all the states.


In the fiscal year ending in 2018, 73 out of 446 sampled school districts included notes on tax abatement in accordance with GASB-77, which is an improvement from 2017 when 85 out of 770 in 2017 did.

67 school districts provided a dollar figure the amount of tax abated, including the eleven instances – where this number is zero. The total amount disclosed is $112,845,769 or approximately $112.8 million .

The most impactful programs are: Keystone Opportunity Zone ( KOZ ), Local Economic Revitalization Tax Assistance ( LERTA ), and Pennsylvania Clean and Green programs ( C&G ). Some localities have all three going on.

Top findings:

  • 17 school districts are involved in/affected by KOZ and disclosed a total of $15,078,897 or approx. $15.1 million.
  • 27 school districts have agreements as part of LERTA and disclosed a total of $8,004,436 or approx. $8.0 million.
  • 11 school districts have agreements as part of C&G and disclosed a total of $18,741,395 or approx. $18.7 million.
  • 8 school districts overlap with TIF districts which resulted in a total of $2,964,096 or approximately $3.0 million in foregone property tax revenue in 2017-2018.

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See the list of Pennsylvania localities that complied with GASB 77 in 2018.