In a move that could reshape the Philadelphia real estate landscape, Mayor Cherelle Parker’s administration is exploring the return of the original 100% property tax abatement — but this time, only in underinvested neighborhoods across the city.

During a recent City Council budget hearing focused on Parker’s ambitious $2 billion housing plan, officials hinted that a selective 10-year tax abatement could be used to incentivize real estate development and revitalization in struggling areas. The mayor’s broader housing initiative aims to create or preserve 30,000 housing units over the next four years.

A Targeted Return to the 100% Tax Abatement

According to John Mondlak, Deputy Director for Development Services at the Department of Planning and Development, the city is considering a targeted version of the previously citywide 100% tax abatement. “The idea would be that we do bring it back to 100% in certain parts of the city and not all of the city,” Mondlak said.

This approach would focus on stimulating investment in neighborhoods that have seen little development, helping to revitalize properties, attract new homebuyers, and stimulate economic growth in key corridors.

Legal Hurdles Ahead

However, the plan faces potential legal roadblocks. City officials are preparing to meet with Philadelphia’s Law Department to review the state’s uniformity clause, which requires municipalities to tax real estate uniformly. This clause may prevent the city from applying a 100% tax abatement selectively unless a legal workaround can be found.

If approved, this policy could become a powerful tool for real estate investors, developers, and homeowners looking to make an impact in underserved communities while benefiting from substantial tax savings.

What This Means for Homebuyers and Sellers

For buyers and investors, a return to the 100% abatement could make properties in designated areas far more attractive — reducing long-term tax burdens and increasing return on investment. For sellers, it could improve market demand in previously slow-moving neighborhoods.

If you’re considering buying or investing in Philadelphia real estate, especially in neighborhoods targeted for revitalization, this proposed policy shift could be a game-changer.

Source: PlanPhilly, April 24, 2025