Neilson Secures Opportunity to Expand Shipbuilding and Create Family-Sustaining Jobs at the Philadelphia Navy Yard
Rep. Ed Neilson July 15, 2026 | 10:37 AM
HARRISBURG, July 15 – State Rep. Ed Neilson, majority chair of the House Transportation Committee, today announced that the 2026-27 Pennsylvania budget includes a significant economic development initiative that will help position the Philadelphia Navy Yard for future growth while creating and retaining family-sustaining jobs.
The budget authorizes the Pennsylvania Department of Community and Economic Development to designate one additional Keystone Opportunity Expansion Zone in a city and county of the first class, providing a powerful tool to attract new investment in Philadelphia's historic shipbuilding industry.
"As majority chair of the House Transportation Committee, I believe transportation is much more than our roads and bridges," Neilson said. "It includes our ports, waterways, railroads, aviation and shipbuilding industry. Every part of our transportation network deserves the opportunity to grow and create good-paying jobs for Pennsylvanians."
Under the new budget language, DCED may designate up to 350 acres of underutilized property that was formerly used as a naval base or commercial shipbuilding facility as a Keystone Opportunity Expansion Zone. Businesses locating within the designated area will be eligible for tax exemptions, abatements, deductions and credits available through the Keystone Opportunity Zone program for up to 10 years.
"This investment gives Philadelphia another competitive advantage in attracting shipbuilding and maritime businesses to the Navy Yard," Neilson said. "These are exactly the kinds of jobs we should be fighting for -- jobs that allow workers to support their families with good wages, quality healthcare and secure retirement benefits."
Neilson noted that recent discussions throughout the region have underscored the importance of strengthening Pennsylvania's manufacturing base and expanding opportunities for skilled trades workers.
"Shipbuilding has long been part of Philadelphia's identity, and it can continue to be a cornerstone of our economy," Neilson said. "By creating the conditions for companies to invest and expand here, we're protecting existing jobs, creating new opportunities, and ensuring that future generations can build rewarding careers right here in Philadelphia."
The legislation requires applications for the new Keystone Opportunity Expansion Zone designation to be submitted to DCED by Oct. 1. If approved, the designation will become effective on Aug. 1, 2027, providing eligible businesses with incentives for up to a decade.
Neilson added that while budget negotiations often focus on the largest spending items, many of the most meaningful economic development initiatives are contained in the policy language accompanying the budget.
"During budget negotiations, we work hard to include provisions that may not make headlines today but will have a lasting impact on our communities for years to come," Neilson said. "This is one of those opportunities an investment that will strengthen Philadelphia's economy, support organized labor, and help ensure the Navy Yard remains an engine of growth and innovation."