Since the inception of the KIZ program, the consistent increase of KIZ Tax Credits awards to Philadelphia companies is a testament to the vibrant and growing startup ecosystem here.
PHILADELPHIA (PRWEB) January 11, 2018
For the second year in a row, University City KIZ Companies received the highest number of KIZ Tax Credit awards among the 28 zones across the Commonwealth. Thirty-six startup companies in University City, Center City and Old City have been awarded nearly $2.4 million in tax credits by the Pennsylvania Department of Community and Economic Development in 2017 as part of the Keystone Innovation Zone (KIZ) Tax Credit Program.
Pennsylvania’s Keystone Innovation Zone Tax Credit is a fundamental component of the KIZ program. A total of up to $15 million in credits are available statewide each year to eligible companies. Eligible startup companies without tax liabilities can sell their tax credits themselves or secure a third-party, independent broker to sell the credits on their behalf.
Since 2006, 79 companies in the University City KIZ have been awarded close to $13 million in KIZ Tax Credits. “Since the inception of the KIZ program, the consistent increase of KIZ Tax Credits awards to Philadelphia companies is a testament to the vibrant and growing startup ecosystem here,” says Robert McGrath, Chair of the University City KIZ Executive Committee and Senior Associate Vice Provost at Drexel University. “The tax credits are critical resources companies use to reinvest in the people and ideas that are putting Philadelphia on the map as a leader in innovation.”
Eligible early stage life science and tech companies can access up to $100,000 in tradable credits each year, and many of the awardees will invest those funds in new employees, while others will purchase equipment to further develop and commercialize products and technologies.
Chris Cera, CEO of Old City-based Arcweb Technologies, has indicated that “all credits will be invested into hiring more people at our Philadelphia headquarters.”
“The KIZ is a great way to help spur innovation across Pennsylvania's cities and towns,” says Eric King, Co-Founder of ic@3410-based Grand Round Table. “We plan to use the credit to expand our national footprint to help primary care practices in their efforts to keep high risk patients out of the hospital.”
The deadline to apply for KIZ Tax Credits is September 15th of each year. Currently, revenue from grants, sales, royalties and other income can be included in tax credit applications, but equity and early-stage venture investments cannot be considered.
UC KIZ companies interested in applying for a tax credit should call 215.966.6156 or email kfitch(at)sciencecenter(dot)org for more information.
About the University City Keystone Innovation Zone
The University City Keystone Innovation Zone is a partnership of BioAdvance, Drexel University, Thomas Jefferson University, the University City Science Center, the University of Pennsylvania, the University of the Sciences in Philadelphia and The Wistar Institute. It was established in 2004 by the Commonwealth of Pennsylvania and the Ben Franklin Technology Development Authority as a Keystone Innovation Zone, a geographically designated zone designed to create a “knowledge neighborhood” that develops technology business communities by aligning talent and resources. UC KIZ partners are committed to working together to ensure that life sciences and information technology opportunities are developed and supported to maximize the potential of university research, start-up companies and international companies seeking to locate in the region. The Science Center serves as the administrative and fiscal agent of the UC KIZ.
For more information about the University City Keystone Innovation Zone, call (215) 966-6156 or visit http://sciencecenter.org/discover/university-city-kiz.