In her 2026 budget address, Philadelphia Mayor Cherelle Parker unveiled a comprehensive and bold plan aimed at stimulating economic growth and enhancing opportunities for contractors to be a crucial part of her agenda.
A central component of her vision to make Philadelphia more business-friendly is a significant restructuring of the Business Income and Receipts Tax (BIRT). The plan outlines a gradual reduction of the net income portion of the BIRT from its current rate of 5.81% to 2.8% by 2039, with the gross receipts portion set to be eliminated entirely. This initiative aligns with recommendations from the Tax Reform Commission, which GBCA testified in front of last year in support of these reductions and eliminations. These reforms will make Philadelphia’s tax structure more competitive and business-friendly, and GBCA is excited to work with the mayor to implement these recommendations.
Mayor Parker’s budget also proposes targeted reductions in the wage tax to alleviate the financial burden on both residents and non-residents. The plan aims to decrease the wage tax for residents from 3.75% to 3.7% by 2030, and for non-residents from 3.44% to 3.39% over the same period. These tax cuts are designed to enhance Philadelphia’s appeal to businesses and workers alike, fostering an environment conducive to job creation and economic prosperity.
Mayor Parker’s historic budget also highlighted increasing opportunities for residential construction projects. The mayor mentioned GBCA by name when referencing her advisory and stakeholder group that is helping her achieve her goal of 30,000 new and updated units of housing. We are excited to support the mayor’s recommendations to help meet this goal, which include $800 million in bonds for housing programs and the cancellation of the construction tax on residential construction projects. Mayor Parker also mentioned GBCA member contractor Dale Construction Co. when referencing the Riverview Wellness Village project, further cementing her commitment to working closely with union contractors as she continues to create economic opportunity for all in Philadelphia.
GBCA is excited to support the mayor’s goals outlined in her FY 2026 budget address and will be on hand when she announces the full details of her housing plan on March 24th. We are grateful to be a trusted partner of Mayor Parker and will continue to do everything we can to ensure GBCA members are at the table during the decision-making process of reshaping our city.
