Tax Credit Program

This Pennsylvania-based incentive program provides tax credits to for-profit companies less than eight years old that locate their operations within the boundaries of the Greater Oakland Keystone Innovation Zone and within the following targeted industries: advanced materials, including specialty chemicals; life sciences; information technology, including robotics, energy-related technology; and "horizon" technologies, including nanotechnology and MEMS.

Applications must be submitted on or before September 15 of each year.

Eligibility

To be eligible for the tax credit program, for-profit business entities must:

  • Locate within the geographic boundaries of the GO- KIZ
  • Be in operation less than 8 years
  • Operate within one of the designated KIZ-targeted industry segments or sectors
  • Meet any other requirements as specified by the Pennsylvania Department of Community and Economic Development may be qualified KIZ Companies and eligible to participate in the KIZ Tax Credit Program. Applications must be submitted on or before September 15 of each year. The KIZ Tax Credits will be awarded on December 15th of the year the application was submitted.

Funding

A KIZ company may claim a tax credit equal to 50 percent 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.

Terms

The KIZ Tax Credit must first be applied against the KIZ company's own tax liability under Articles III (Personal Income Tax), IV (Corporate Net Income Tax), or VI (Capital Stock - Franchise Tax) of the Pennsylvania Tax Reform Code of 1971. Tax credits not used in the same tax year as the contribution was made may not be carried forward or carried back and is not refundable or transferable. Unused KIZ Tax Credits may be applied against the tax liability of the KIZ company for up to five years from date the KIZ Tax Credit is issued or may be reassigned/sold to another taxpayer.

Guidelines

View the Pennsylvania Department of Community and Economic Development's website for additional information and guidelines.

How to Apply

The Single Application must be submitted online at Single Application. For assistance in completing the Single Application, call 800-379-7448.

FAQs

For specific questions on this program, contact the Pennsylvania Department of Community and Economic Development's Technology Investment Office.

For more information about GO KIZ's Tax Credit program, contact Justin Driscoll, Coordinator, 412-918-428, jdriscoll@pghtech.org.