PA Department of Community and Economic Development
The mission of the Department of Community and Economic Development (DCED) is to foster opportunities for businesses to grow and for communities to succeed and thrive in a global economy. Our mission is to improve the quality of life for Pennsylvania citizens while assuring transparency and accountability in the expenditure of public funds.
400 North Street Harrisburg Pennsylvania 17120 United States
Insurance companies are designated as the sole purchasers of the tax credits. The enabling legislation states that a qualified taxpayer is “any of the following that has insurance premiums tax liability and contributes capital to purchase premiums tax credits under this article: (1) An insurance company authorized to do business in this Commonwealth and (2) A holding company that has at least one insurance company subsidiary authorized to do business in this Commonwealth.”
At what time does the insurance company have to submit payment for the purchase of the tax credits?
View the PDF document to view the Innovate in PA Available Funds and associated payment schedules.
How will the revenue from the tax credit sales be used?
Per the enabling legislation, the Innovate in PA fund is established within the Ben Franklin Technology Development Authority (BFTDA). Once revenues are generated, the funds will be deployed as follows:
50 percent shall be distributed to the four (4) Ben Franklin Technology Partners;
45 percent shall be distributed to the BFTDA’s venture investment program for traditional venture investments or impact investments (up to 15% of the 45% may be used to support impact investments), and
5 percent shall be distributed to Pennsylvania’s three (3) regional biotechnology research centers (Life Sciences Greenhouses).
How are the tax credits being sold?
The Department of Community & Economic Development secured the services of Atex Petros to sell the credits.
When are the credits redeemable?
The Innovate in PA enabling legislation states, “A qualified taxpayer…may claim the credits beginning in calendar year 2017 against insurance premiums tax liability incurred for a taxable year that begins on or after January 1, 2016.”
Who should I contact if I have questions?
Innovate in PA is an initiative of the Department of Community & Economic Development’s Office of Technology & Innovation. Please direct all questions to: