Pennsylvania Gov. Josh Shapiro's administration has approved Erie and Reading’s applications for the Pennsylvania’s City Revitalization and Improvement Zone (CRIZ) program, according to an announcement Monday.

CRIZ helps cities which have faced economic challenges revitalize their downtowns by renovating vacant or rundown spaces, the Shapiro administration said. The goal is to attract new businesses and create jobs.

CRIZ is an area of up to 130 acres, comprised of parcels designated by a contracting authority, which provides economic development and job creation opportunities. State and local taxes collected within the CRIZ are used to repay debt service to stimulate economic development projects within the CRIZ.

Because the application was approved before the end of the current calendar year, the Pennsylvania Department of Revenue – which administers the program with DCED and the governor’s budget office – can use 2024 as the base year for tax collection purposes. That means Erie’s CRIZ can get started a full year sooner instead of waiting until the end of 2025 to use that tax year’s figures.

Nearly $15 million was returned to the three communities already participating in the CRIZ program — Lancaster, Bethlehem, and Tamaqua.