What are Keystone Innovation Zones (KIZs)?
A statewide initiative to foster entrepreneurship in Pennsylvania, KIZs are special geographic districts offering sale-able tax credits to qualifying companies in targeted life science and technology sectors. There are three KIZs in Philadelphia.
How does the program work?
With a pool of up to $15 million in tax credits available to KIZ companies each year, the credit can total up to $100,000 annually per KIZ company. The credit can be applied against the company’s Pennsylvania Personal Income Tax, Corporate Net Income Tax, or Capital Stock-Franchise Tax for the taxable year during with the credit is approved. For companies with no tax liability, the credit is also saleable for market rate returns, which have ranged from $0.80 to $0.90 on the dollar. A KIZ company may claim a tax credit equal to 50 percent of increase in the company’s gross revenues in the immediately preceding taxable year from gross revenues in the second preceding taxable year, attributable to company activities in the KIZ, up to $100,000.
For example, a company’s 2015 tax credit would be calculated as follows:
2015 KIZ Tax Credit = (Gross Revenue 2014 – Gross Revenue 2013) / 2
Applications must be submitted on or before September 15th of each year, and additional information needs to be reported starting before the KIZ Tax Credit application, in advance of January 10th and July 10th, annually.
Qualifying for the KIZ Program
All applicants must be:
- A for-profit business entity
- In operation for less than 8 years
- Innovating in life sciences or technology
- Commercializing new technologies, innovative products or processes
- Working within specific targeted life sciences or technology sectors
- Located within one of Philadelphia’s three Keystone Innovation Zones (see map)
Philadelphia’s Distinct KIZs
Are you a qualifying company and located in a KIZ? Contact the coordinator from your region.
BioLaunch 611+ Keystone Innovation Zone
- Coordinator: Stephen Nappi, firstname.lastname@example.org, 215.204.5293
- Focus: Life Sciences, Information Technology and Advanced Manufacturing, specifically related to Oncology, Cardiovascular Health, Diabetes and Aging
University City Keystone Innovation Zone
- Coordinator: Kristen Fitch, email@example.com, 215.966.6156
- Focus: Life Sciences, Information Technology and Nanotech
Navy Yard Keystone Innovation Zone
- Coordinator: Patrick O’Conner, poconnor@PIDCphila.com, 215.218.2856
- Focus: Energy, Nanotech, Advanced Manufacturing, Communications/IT, Homeland Security and Life Sciences