KIZ Tax Credits
$1.7 Million in Local KIZ Tax Credits to Date
As host of the Williamsport/Lycoming Keystone Innovation Zone (KIZ) program, IMC has been able to help start-up companies in the Williamsport area to receive over
$1.7 million in state KIZ Tax Credits in the last few years.
If you are:
- A young company located within a KIZ Zone
- Ready to start a business and currently evaluating locations for your start-up business.
- A start-up manufacturing company
- OR you are an existing company interested in creating a spin-off company to focus on a new product or innovation…
Then you may be eligible to apply for KIZ Tax Credits.
Money Back for Start-Up Growth
The KIZ Tax Credit program is a key component of the Keystone Innovation Zone program and offers a maximum of $100,000 to companies in tax credits annually. The state is able to grant $25 million in tax credits each year to KIZ Companies. Companies must qualify for the KIZ program, and must be increasing gross revenues annually to apply for the credits. The unique KIZ Tax Credit program can contribute significantly to a start-up business’s needs for tax relief.
Another unique feature of the Tax Credit program, if eligible, is the ability of a KIZ company to sell their Tax Credits to another company.
Our clients are able to sell their tax credits for cash to interested parties, in the range of 85-90 cents on the dollar, which amounted to $85,000-90,000 direct cash injection back into their businesses. Since 2007, KIZ companies in Williamsport alone have received over $1.7 million in KIZ Tax Credits!
The Williamsport Sun-Gazette published a nice article about the KIZ Tax Credit program, which paints a great picture for how it is helping start-up companies right here in Williamsport. Read it here.
A company must meet the following requirements in order to apply for KIZ Tax Credits. A company or entrepreneur must:
- Operate within the designated KIZ geographical area.
- Work within a targeted industry segment for that particular KIZ.
- Be in operation for less than eight years.
- The KIZ Company must meet and maintain all of the other requirements for application, which currently include but are not limited to a semi-annual reporting requirement for the KIZ program, obtaining a DUNS number from Dun & Bradstreet, and reporting the impact of KIZ Tax Credit projects and services to IMC’s sponsors annually.
- For more information on the WLKIZ’s requirements please click here.
Here’s How It Works
- Review and meet the criteria above.
- Complete and return the Williamsport/Lycoming KIZ Company Eligibility Questionnaire for review.
- Begin submitting required semi-annual KIZ reporting.
- Increase your gross revenues between each calendar year and file your taxes.
- In your third year in the KIZ Zone, apply for credits with approval of the KIZ Coordinator by September 15.
- Receive a letter from the state on December 15 notifying you of your award.
- File your taxes and either apply credits to your liability, sell the remaining credits, or keep those remaining credits for a future year.
- Apply for KIZ Tax Credits annually until your company turns 8, as long as you continue to increase your revenue every year.
A company may claim a tax credit equal to 50% of the increase the company earns in gross revenues over a two-year period, up to $100,000 per year.
If you have any further questions, please contact the Williamsport/Lycoming KIZ at info at wlkiz dot com or 570-329-3200 x8083. Other KIZ locations are available in the state. To learn more about this unique benefit to qualified start-up companies in PA, click here.