We are now part of the KIZ!
What is KIZ?
We recently hosted a lunch and learn on this topic with Jeremy Young of Lancaster City Alliance.
“The Keystone Innovation Zone Tax Credit Program is a key component of the Keystone Innovation Zone
(KIZ) Program. The KIZ Program, established by Act 12 (SB 778) of 2004, creates designated geographic
zones to foster innovation and create entrepreneurial opportunities by aligning the combined resources of
educational institutions and the private sector.
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.”
KIZ Tax Credits can be used to offset certain state tax liabilities. This innovative program also contains a tradability component crucial to young companies that have little or no tax liability. The application to apply to the Department of Community & Economic Development (DCED) for approval to sell the KIZ Tax Credits can be found on DCED’s website at dced.pa.gov/kiz
Eligibility – Per the KIZ brochure
To be eligible to participate in the KIZ Tax Credit Program, the applicant must meet the following criteria:
1. Must be an entity subject to Personal Income Tax (Article III) or Corporate Net Income Tax
2. Must be a for-profit business entity located within the geographic boundaries of a particular KIZ
3. Must be in operation less than 8 years
4. Must be operating within one of the KIZ target industry sectors
5. Must be in state tax compliance with the laws and regulations of the commonwealth as determined
by the Department of Revenue
6. Meet any other requirements specified by the Department of Community & Economic Development
Additionally, eligible KIZ companies must contact and be working with their local KIZ Coordinator. KIZ
Coordinators are required to provide each eligible company with a Coordinator Certificate, which must be
included on the tax credit application.
If a company is not working with its KIZ Coordinator and cannot
obtain a KIZ Coordinator Certificate for its application, then it is ineligible to receive tax credits.
For a list of all the KIZ Coordinators please visit: https://dced.pa.gov/programs/keystone-innovation-zone-tax-credit-program/