Qualified KIZ companies located in a designated zone are eligible to apply for the KIZ Tax Credit.
The KIZ Tax Credit program offers up to $100,000 in tax credits to companies annually. The state is able to grant up to $15 million in tax credits each year to KIZ companies. Companies must qualify for the KIZ program and must be increasing gross revenues annually to apply for the credit. The unique KIZ Tax Credit program can contribute significantly to a start-up business’s needs for tax relief.
KIZ companies in Williamsport alone have received nearly $2.4 million in KIZ Tax Credits!
Another unique feature of the KIZ Tax Credit program, if eligible, is the ability of a KIZ company to sell their KIZ Tax Credit to another company. Brokers are available to help identify buyers and facilitate a sale transaction.
KIZ Tax Credit Criteria
A company must meet the following requirements in order to apply for KIZ Tax Credits. A company or entrepreneur must:
- Have an approved KIZ Company designation. (Complete and return the Williamsport/Lycoming KIZ Company Application)
- Operate within a KIZ-designated geographical area/zone.
- Work within a targeted industry segment.
- Be in operation for less than eight years.
- The KIZ Company must meet all other requirements for application, which currently include: semi-annual reporting for the KIZ program, obtaining a DUNS number from Dun & Bradstreet and reporting the impact of KIZ Tax Credit projects and services to IMC’s sponsors annually. Additional requirements may be added without prior notice.
Not meeting the requirements of the program will affect the company’s KIZ designation and access to grant opportunities and the KIZ Tax Credit Program.
Once a company meets all KIZ requirements, they can apply for the tax credit with the approval of IMC’s KIZ Coordinator. A company may claim a tax credit equal to 50% of the increase the company earns in gross revenues over a two-year period, up to $100,000 per year.
Complete Tax Credit Program Overview and Guidelines
Click here for complete details and guidelines on the KIZ Tax Credit Program.