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About KOZ: Introduction

 

KOZ, or Keystone Opportunity Zones, are commercial, industrial and residential sites where most state and local taxes have been eliminated. In 2012, approximately 4,000 jobs were created or retained and $230,000,000 invested in the SPC region by businesses located in KOZ areas.

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.

Key 2016 Highlights

  • 8 new businesses located in regional KOZ sites
  • More than 2,643  jobs were created or retained
  • 172 applications were processed
  • Over $250 million in public and private capital was invested in KOZ sites in the SPC region during 2016

Success Story

In Armstrong County, Involta, LLC purchased two available lots within the Northpointe Technology Center in 2016.  This will be Involta's first data center facility in PA, with UPMC as their anchor tenant.  Involta owns and operates 14 data centers across the United States.  

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