KEYSTONE INNOVATION ZONES
The Keystone Innovation Zones (KIZs) are a part the Commonwealth of Pennsylvania’s economic stimulus package. KIZs are designated zones that are established in communities that host institutions of higher education. These zones are designed to foster innovation and create entrepreneurial opportunities. They do this by gathering and aligning the combined resources of educational institutions, private businesses, business support organizations, commercial lending institutions, venture capital networks (including angel investors), and foundations.
tecBridge coordinates the Lackawanna and Luzerne County Keystone Innovation Zones (KIZ). Companies located within the geographic designations, less than eight years old and within one of the designated sectors may take advantage of tax credits, utilize the services of our local college students as interns and benefit from innovation grants.
As part of the Commonwealth of Pennsylvania’s economic stimulus package, eligible businesses may take advantage of:
Transferable Tax Credits
- Eight Years or Less in Operation
- Operating within the Designated KIZ Geographical Designations
- Operating within One of the Targeted Industry Sectors
- Working with the KIZ Coordinator
Targeted Industry Sectors
These focus areas were selected as a result of either existing regional strengths in a particular sector, strength in university faculty expertise within a certain sector, or a strength identified by one or more of the region’s economic development organizations.
Healthcare/Life Science: Our region contains more than twenty hospitals and a handful of life science companies that are trying to create the family sustaining jobs needed to grow our economy.
Nanotechnology, Advanced Manufacturing & Plastics: NEPA is proud of the fact eight companies are currently working with the enabling nanotechnology and a vast array of manufacturing companies including more than twenty three plastics manufacturers offer employment in the region.
Information Technology/New Media: NEPA hosts many local and nationally recognized companies that specialize in e-marketing, e-retail and web development.
Back Office/Finance: Strategically positioned to attract and grow in the financial services industry, NEPA is home to a wide variety of financial services companies including banking, insurance and technical support.
Homeland Security: From small local companies to Fortune 500 companies, NEPA businesses continue to work with the Department of Homeland Security.
KIZ Geographical Zones
Downtown Scranton (Lackawanna Ave-Miflin Ave-Vine Street-Adams Ave)
Carbondale Technology Transfer Center
Jessup Small Business Center
Mount Pleasant Park
Downtown Wilkes-Barre (River St.-Ross St.-Wilkes-Barre Blvd, North St.)
The Twin Stacks, Route 309, Dallas
CAN BE Innovation Center
CAN DO Corporate Center Park/Green Building
CAN DO Harwood Innovation Site
Downtown Hazleton- (Broad Street from Poplar Street to Diamond Ave.)
Dorr-Oliver Property- 101 Carleton Avenue, Hazleton
- Northeastern Pennsylvania Keystone Innovation Zones (Overview) view PDF
Transferable Tax Credits:
Tax credits are available to eligible companies located within a KIZ. A company may claim a tax credit equal to 50% of the increase in that company’s gross revenue from year one to year two. In the event the company posts a revenue increase but doesn’t maintain the tax liability then the company may sell the credit to another Pennsylvania based firm. The purchasing company will then apply the credit. The tax credit shall not exceed $100,000 annually and may be carried forward for up to four years.
Year 1, ABC Company’s gross revenue = $40,000
Year 2, ABC Company’s gross revenue = $60,000
Year 3, ABC Company may apply for a tax credit of $10,000 or sell the credit to another PA based company for $10,000. (50% of the $20,000 increase in gross revenue from year 1 to year 2.)
Applications must be filed by September 15 of each year.
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