Erie PA - Erie Regional Chamber and Growth Partnership

Commonwealth Tax Credit Seminar: A Recap

Jun 15, 2017 | Posted in News

-Brett Wiler, Director of Research, Grants, and Business Outreach

On Thursday June 8th, Ben Franklin Technology Partners -- in collaboration with the Pennsylvania Department of Community and Economic Development, The Erie Technology Incubator at Gannon University, and KIZ Resources, LLC – hosted a Commonwealth Tax Credit Seminar designed to create awareness of the multitude of tax credit programs available in the state of Pennsylvania. I was impressed by the concise, yet thorough, presentation by the speakers. I was equally impressed by the attendance from the private sector, entrepreneurs, economic development specialists, and community stakeholders. What follows is a recap of the information presented.

Keystone Innovation Zone Tax Credit Program
Created in 2003 to improve and encourage Pennsylvania’s research and development efforts, technology commercialization and entrepreneurship programs. A for-profit business entity qualifies for the tax credit if it meets the following criteria:

  • Located within a Keystone Innovation Zone.
  • In operation less than eight years
  • Creates / develops unique proprietary technology
  • And falls within one of the targeted industry segments; Advanced Materials, Diversified Manufacturing, Business Services, Life Science, High Technology.

For more details, contact your local program administrator, Heidi Sullivan at Ben Franklin Technology Partners. Or visit KIZ Resources, LLC.

Pennsylvania Research and Development Tax Credit
Developed to spur growth and development for technology-based companies in the Commonwealth. Companies can receive 10% of the increase in spending from the average spending of the previous four years. The following expenditures qualify:

  • In-house research including
    • Direct supervision or support
    • Engaging in research
    • Land or land improvement
    • Property
    • Wages
  • Contracted research expenses
    • 65% of amount paid
    • Prepaid amounts

For more information, visit KIZ Resources, LLC. Or speak with one of our many member Accounting and/or Attorneys at the Erie Regional Chamber.

Enterprise Zone Tax Credit Program
A Commonwealth program that provides tax credits to private companies investing in rehabilitating, expanding, or improving buildings or land located within designated enterprise zones. Businesses in Enterprise Zones receive 25% of building renovations in tax credits up to $500,000. Qualifications include:

  • Private company
  • Project must be located within Enterprise Zone
  • Project promotes community economic development
  • Qualified investment

Applications must include a letter of support from Zone Coordinator
To learn more, contact Chris Groner at theCity of Erie Department of Community and Economic Development. For county information, contact Rick Novotny at the Erie County Redevelopment Authority.

Neighborhood Assistance Program
A Commonwealth tax program designed to encourage businesses to invest in projects which improve distressed areas. Those projects should address affordable housing, community services, crime prevention, education, job training or neighborhood assistance. The tax credits are awarded up to 55% of the amount of the firm’s contribution to a project. Qualifications include:

  • Project serves a distressed area or
  • Supports neighborhood conservation
  • Neighborhood seeking contributions or
  • Business firm making contributions

For more information contact Kim Thomas, Regional Director of the Northwest PA office for the Department of Community and Economic Development. Or visit KIZ Resources, LLC.

Job Creation Tax Credits
A Commonwealth program designed to create new jobs within the next three years. Companies receive a $1,000 per-job tax credit to create new jobs. Companies must create 25 new jobs or expand by 20%. Businesses with less than 100 employees are guaranteed at least 25% of the allocated credits.
For more information visitKIZ Resources, LLC.

*All information for this article was collected from the following sources:
KIZ Resources, LLC.
Pennsylvania Department of Community and Economic Development
Ben Franklin Technology PArtners

Share this article on