Keystone Innovation Zone (KIZ) Tax Credit Program

Overview

An incentive program that provides tax credits to for-profit companies less than eight years old operating within specific targeted industries within the boundaries of a Keystone Innovation Zone (KIZ).  With a total pool of up to $15 million in tax credits available to KIZ companies annually, the KIZ tax credit program significantly contributes to the ability of young KIZ companies to transition through the stages of growth.

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

Uses

Tax credits must be applied against the tax liability of a KIZ company for the tax year in which the KIZ Tax Credit was issued. Unused KIZ Tax Credits may 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.

Eligibility

For-profit business entities 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 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% 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), or IV (Corporate Net Income Tax) of the Pennsylvania Tax Reform Code of 1971. Unused KIZ Tax Credits may 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.

How to Apply

The Single Application must be submitted online at Single Application. For assistance in completing the Single Application, call 1.800.379.7448.

FAQs

For specific questions on this program, contact DCED’s Technology Investment Office at: saraspisho@pa.gov.

Additional Information

Program Case Study

Factsheet

KIZ Coordinator Contact Information

Sales Assignment Application Form

Please send all KIZ Tax Credit Claim Forms to the following address:
Pennsylvania Department of Revenue
Office of Economic Development
327 WALNUT ST FL 11
HARRISBURG PA 17128-2005

How To Apply For The 2018 Tax Credit

Tax Credit Compliance Forms and the subsequent ownership attachment can be mailed to:

Department of Community & Economic Development
Commonwealth Keystone Building
KIZ Tax Credit Program – Sarah Spishock
400 North St
4th Floor
Harrisburg, PA 17120

Reminder: These forms must be postmarked by September 15, 2018.

KIZ Tax Credit Awards

KIZ Tax Credit Sales

KIZ Tax Credit Annual Reports