KOZ, or Keystone Opportunity Zones, are commercial, industrial and residential sites where most state and local taxes have been eliminated.
Taxes waived by the KOZ include:
- State corporate net income tax.
- State capital stock and foreign franchise tax.
- State personal income tax.
- State sales and use tax.
- Local earned income/net profits tax.
- Local business gross receipts, business occupancy, business privilege and mercantile tax.
- Local real property tax.
- Local sales and use tax.
Pennsylvania is a leader in providing the business community with new tools and incentives to attract and grow revenues, profits and employment opportunities.
Out-of-state businesses moving to a KOZ site need to own or lease property within a zone for at least half the tax year to claim an exemption from state and local taxes.
In-state businesses moving to a KOZ must either increase full-time employment by at least 20% in the first full year OR make a capital investment equal to 10% of the prior year's gross revenues.
Applications for benefits must be filed by December 31 of the calendar year in which benefits are being sought.
2008 Activities
In 2008, SPC received 259 applications for tax benefits from KOZ owners and occupants. Of these applications, 17 were filed by businesses new to the program that had relocated or expanded to a KOZ site in 2008.
In July 2008, ACT 79 was signed into law providing for the extension of existing KOZ zones, additional acreage, and the creation of 15 new zones across the Commonwealth. In November, the SPC region was awarded one of the 15 new zones. A site located in Harrison Township and Brackenridge Borough in Allegheny County was awarded KOZ designation to support development of the Allegheny Ludlum Corporation’s (ALC) Specialty Metals Hot Rolling and Processing Facility. ALC anticipates making a capital investment in excess of $750 million while retaining at least 1,400 full time jobs and creating an additional 75 over the next three years.
For more information on KOZ sites in Southwestern Pennsylvania, call Southwestern Pennsylvania Commission at 412-391-5590 or any of the counties listed on the Contact Us page. For more information about the statewide KOZ program visit:
http://koz.newpa.com
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