Companies that have yet to take advantage of two lucrative benefits, a tax incentive program and credits, offered by the State of Pennsylvania, still have a chance to apply now that deadlines have extended to December. These incentives support both young and established businesses by providing tax benefits and or cash to support growth.
KIZ – An incentive program that provides tax credits (that can be sold for cash) to for-profit companies less than eight years old operating within specific targeted industries within the boundaries of a Keystone Innovation Zone (KIZ). The KIZ tax credit program significantly contributes to the ability of young KIZ companies to transition through the stages of growth to profitability.
R&D – Both federal and state R&D tax credits are available to companies that spend qualified research dollars on developing or improving products or processes. A wide variety of businesses may qualify including manufacturers, food producers and tech companies in addition to standard R&D focused organizations. The federal credit has a benefit for startups and must be claimed on a company’s tax return while the state credit has a December application and is sellable. Some limitations may apply.