Since its creation in 2003, Pennsylvania's Keystone Innovation Zone Program has awarded over $150,000,000 in tax credits. The GSKIZ combines educational institutes with the private sector to promote entrepreneurism and innovative business in PA.
The KIZ Tax Credit Program significantly contributes to the ability of young KIZ companies to transition through the stages of growth.”
-DCED (Keystone Innovation Zone (KIZ) Tax Credit Program Guidelines, July 2018)
Companies that qualify for the program have the opportunity to earn up to $100,000 in tax credits, each eligible year. There is also a tradability component that allows KIZ companies with no tax liability to sell their tax credits. Many of our KIZ companies have invested the profits from these sales into the continued growth of their business.
The GSKIZ Program is specific to entrepreneurs that meet or will meet the following eligibility requirements:
- The Business is under the age of eight (8) years old
- The Business is physically located in one of the GSKIZ approved geographic zones (see below)
- Your Business has Intellectual Property potential – This information will be detailed in your business plan
(You don't need a business plan to meet with RBI, we understand you may need guidance to get that started.)
- Your business is considered a for-profit and files a PA and Federal Tax Return. (RBI can help non-profits but they do not qualify for KIZ Tax Credits)
To qualify for KIZ your business must also be classified as one of the following industry sectors:
- Advanced Manufacturing/Diversified Manufacturing (AM/DM)
- Business Services
- Life Science
- High Technology
The best way to know if you qualify is to submit a RBI new client application and meet with Kelly.
Although strict guidelines must be followed in order to capitalize on this opportunity RBI clients have seen the amazing financial reward by maintaining an active status in the KIZ program.
** Disclaimer: RBI cannot financially support business solely operating in the areas of alcohol, tobacco, firearms, gambling, check cashing businesses, or adult entertainment.
The PA DCED provides the public with KIZ Guidelines. A PDF copy of those guidelines can be found HERE.
You can also review their 2018 KIZ Tax Credit Seminar Presentation HERE.
PA DCED also provides a Research & Development Tax Credit Assignment Program which many of our clients can qualify.
A PDF copy of those guidelines can be found HERE. For more information go to their website.