Tax Credits - Abatements

Virtually free of taxes through 2013. Pennsylvania's Keystone Opportunity Zone (KOZ) program allows us to promote the Palmyra Business Park in this manner because it has KOZ status. Since its inception in 1999, the Commonwealth's highly-recognized KOZ program has generated some pretty impressive numbers: 14,000 new jobs, 8,000 retained jobs, and over $1.5 billion invested in real estate as capital investments throughout the Commonwealth. The KOZ program is just one tax credit and abatement program available to developers in Wayne County. Another is the LERTA program, which provides relief for improvements on property within designated areas. WEDCO will assist with the application process, and work with appropriate agencies and economic development professionals, to help determine your eligibility and find the best program for your success. Program information is provided by the PA Department of Community and Economic Development (DCED). Contact WEDCO to learn how and where to apply, or visit DCED's website for specific program guidelines. For a summary of our most commonly used financing programs, download WEDCO's Financial Guide. Job Creation Tax Credits (JCTC) A $1,000-per-job tax credit to approved businesses that agree to create jobs in the Commonwealth within three years. Keystone Opportunity Zones (KOZ) Provides state and local tax abatement to businesses, property owners, and residents locating in one of the 12 designated zones as of January 1, 1999. Local Economic Revitalization Tax Assistance Act (LERTA) Local municipalities, school districts and counties can offer tax abatements on improvements to property for up to 10 years. Research and Development Tax Credits Allows employers qualifying for the federal R and D tax credit to receive a 10 percent tax credit for increased research activities in Pennsylvania over a base period. Job Creation Tax Credits (JCTC) Eligibility Approved businesses that agree to create new jobs in the Commonwealth within three years Eligible Uses Tax credits used to offset various business tax liabilities Amounts $1,000-per-job tax credit to approved businesses that agree to create jobs within three years 25% of the tax credits allocated each year must go to businesses with less than 100 employees Terms Tax credits may not be utilized by a business until the jobs are actually created back to top Keystone Opportunity Zones (KOZ) Eligibility Businesses or residents located or conducting activity within a KOZ designated property Eligible Uses Provides certain state and local tax abatements and exemptions to qualified businesses, residents and property owners Amounts Projects in KOZ are given priority consideration for assistance under various community and economic building initiatives Applications for assistance should be clearly marked KOZ activity when appropriate Terms Qualified businesses, residents or property owners must be current with all state and local taxes and building codes in order to receive benefits and/or annual certification Existing PA business relocating to a zone must meet one of two provisions increase full-time employment by 20% (based on operations being moved) within one year, or make a capital investment in the property equivalent to 10% of gross revenues from prior year Length of program varies per sub zone ending in 2008, 2010, or 2013 For more information Visits the Commonwealth's KOZ site. (Link to http://koz.inventpa.com) back to top Local Economic Revitalization Tax Assistance Act (LERTA) Eligibility City County Borough Incorporated town Township School district Eligible Uses Local municipalities, school districts and counties can offer tax abatements on improvements to property for up to 10 years Amounts Not applicable Terms Local government decision (up to 100% tax abatement on improvements to property for up to 10 years) Abatement on improvement to property back to top Research and Development Tax Credits Eligibility Businesses qualifying for the federal R and D tax credit and making R and D investments in PA Eligible Uses Applied research and development expenditures Amounts 10% tax credit for new R and D expense increases over the base period (prorated to not exceed + $15 million annual cap for all businesses) Up to 20% of total pool set aside for small businesses Terms Applicable to CNI, CSFT and PIT tax liability Unused credits may be carried over for up to 15 succeeding taxable years Credit usage is limited to 50% of tax liability in any year back to top