Keystone Innovation Zones promote technology innovation and commercialization through the collaboration of world-class academic institutions, federal, state, and local government agencies, and private industry, to support growth of research and business activity. Philadelphia has three zones, the University City KIZ, The Navy Yard KIZ, and the Bio 611 KIZ. Each zone is administered by a separate local coordinator. Technology and life science companies that are less than eight years old, and located in the zone, can apply for up to $100,000 of saleable tax credits from the State.
Businesses located in Keystone Opportunity Zones can qualify for tax reductions, exemptions, abatements, or credits in corporate taxes, franchise taxes, financial institution taxes, income taxes, and real estate taxes. In addition, most purchases of items subject to Sales and Use Tax will be exempt from state and local Sales and Use Tax for property used, consumed and utilized in the KOZ.
The City of Philadelphia offers a Job Creation Tax Credit, which may be applied against the Business Income and Receipts Tax for up to $25,000 per job created in 2015. Qualifying businesses may claim a credit of an amount equal to $5,000 per year over five years for each new full-time job created in the City of Philadelphia.To qualify, a business must demonstrate the ability to create at least 25 new full-time jobs, or increase fulltime workforce in Philadelphia by at least 20% within a five-year period.
This program exempts new businesses that create at least six jobs in Philadelphia from paying the Business Income and Receipts Tax during the first two years of operations. Additionally, fees will be waived for eligible new businesses for a variety of licenses and registrations. There is no seperate application, it’s now wrapped into the Commercial Activity License application.
Philadelphia Works, Inc. can offer training grants to be used to offset eligible training expenses for employees who are Philadelphia residents. In addition, Philadelphia Works, Inc. can provide non-financial assistance for recruitment, assessment and employee retention. The training funds may only be used for eligible costs and are contingent on Philadelphia Works, Inc. receiving funds from the Commonwealth of Pennsylvania.