By Jared Acosta
One hundred ninety-seven early-stage technology companies across Pennsylvania will benefit from $14 million Keystone Innovation Zone (KIZ) tax credits.
According to the Pennsylvania Department of Community and Economic Development (DCED) website, KIZ is an incentive program that provides for-profit business entities special tax incentives to help forward Pennsylvania's technology sector. In order to qualify, the DCED lists the following criteria:
1) located within the geographic boundaries of a particular KIZ,
2) in operation less than 8 years,
3) operating within one of the KIZ targeted industry segments or sectors, 4) and meeting any other requirements as specified by the DCED, may be qualified KIZ Companies and eligible to participate in the KIZ Tax Credit Program. Applications must be submitted on or before December 1 of each year. The KIZ Tax Credits will be awarded on May 1 of the subsequent year.
The DCED website states, "A KIZ company may claim a tax credit equal to 50% of the increase in that KIZ Company's gross revenues in the immediately preceding taxable year attributable to activities in the KIZ, over the KIZ Company's gross revenues in the second preceding taxable year attributable to its activities in the KIZ. The KIZ Tax Credit is limited to $100,000 annually per KIZ company."
According to a statement issued by Gov. Wolf today, Companies approved for 2021 tax credits were in the following KIZs:
- Beaver County KIZ
- BioLaunch611+ KIZ
- Bucks County Biotech KIZ
- Erie County KIZ
- Fayette/Washington County KIZ
- Greater Johnstown KIZ
- Greater Oakland KIZ
- Greater Susquehanna KIZ
- Huntingdon County KIZ
- i2n Chester County KIZ
- i2n Delaware County KIZ
- I-99 Innovation Corridor KIZ
- Lackawanna County KIZ
- Luzerne County KIZ
- Navy Yard KIZ
- Northwest Lancaster City KIZ
- Pittsburgh Central KIZ
- Pocono Mountains KIZ
- Southside Bethlehem KIZ
- University City KIZ
- Williamsport/Lycoming KIZ
- York County KIZ
"It's vital to support our tech entrepreneurs here at home and foster their growth," Gov. Wolf said. "These tax credits help reduce the burden on companies as they are just starting out. In turn, these businesses and entrepreneurs will push Pennsylvania's thriving tech sector forward."
View the PA KIZ location map at https://dced.pa.gov/business-assistance/kiz-coordinator-locations/
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