There is a deadline approaching and you’re not going to want to miss out on this one. Come September fifteenth, the deadline for Keystone Innovation Zone’s (KIZ) Tax Credit Program will close and with it the opportunity for up to $100,000 in tax credits for your business.
The annual pool of money that the KIZ tax credit program offers is fifteen million dollars and all you have to do is qualify and apply. This credit program aims to aid young technology companies as they expand during their developmental stages, which is why the age of a qualifying company is restricted to less than eight years. The next requirement: operate in a KIZ tax credit zone; there are twenty-one zones across Pennsylvania with two in Philadelphia alone. Companies such as Global Technology Enterprise, Cloudmine, Torchlight Technology Group LLC, and Rhoads Marine Industry are just a few companies out of twenty-nine in a Philadelphia KIZ zone that were awarded $82,585 each in 2016. The last requirement for the KIZ tax credit program is the operation of your business in one of the target industry sectors, which include:
- Advanced Manufacturing and Materials
- Agriculture and Food Processing
- Communications & Information Technology
- Clean Technology, also energy conservation and environmental sustainability
- Defense/Homeland Security
- Energy and Environmental Technologies
- Food Sciences
- Homeland Security Healthcare
- Life Sciences
- Plastics, Wood manufacturing
What can you do with all of this money? It’s a tad intimidating, we know. Well, you can hire employees, invest the money into new equipment or programs, sell any unused tax credits for cash to an approved buyer, or carry the remainder forward to use in the following four years.
How do you know if you’ve been selected? Once you’ve submitted your application (before the deadline of September 15th) there is nothing to do but sit back and wait. The results of the awards will be announced December 15th.
You can access the application at The Pennsylvania Department of Community and Economic Development.
Contact for application inquiries: RA-TechInvTaxCredit@pa.gov.
Check your local Department of Community and Economic Development too see what deadlines your city has coming up.