PHILADELPHIA--(January 15, 2015) – Twenty startup companies in University City and Center City received a collective $1.7 million in tax credits awarded by the Pennsylvania Department of Community and Economic Development in 2014 as part of the Keystone Innovation Zone (KIZ) Tax Credit Program. All 20 companies are located in the University City Keystone Innovation Zone.
Pennsylvania’s Keystone Innovation Zone Tax Credit is a key component of the KIZ program. Up to $25 million of credits are available each year to eligible companies. Companies that do not have any tax liabilities can sell their tax credits themselves or secure a third-party, independent broker to sell the tax credit on their behalf.
Since 2006, over $6.2 million in KIZ Tax Credits have been awarded to 39 companies in the University City KIZ. “Securing non-dedicated funds through the sale of KIZ Tax Credits can be a major boost for early-stage companies operating in the life science and tech sectors” says Robert McGrath, Chair of the University City KIZ Executive Committee and Senior Associate Vice Provost at Drexel University. “The KIZ Tax Credit Program is incentive for companies to move into and stay in the City of Philadelphia and a major economic asset to our entrepreneurial community.”
Eligible 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. As awardee Robert Moore, Co-founder and CEO of RJMetrics, put it, “Jobs, jobs, jobs! We will use the KIZ Tax Credit to help fund our aggressive team growth. We grew from 40 to 90 people in 2014 and are planning for further growth in 2015.”
According to Bruce Willner, Chief Science Officer at Graphene Frontiers, which is also located in the UC KIZ, “We plan to use the KIZ Tax Credit to hire a production engineer who will support the scale up of manufacturing for our chemical and biosensor products."
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@sciencecenter.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.
