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.
They are:
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.
Schedule a call with Ashmore Consulting’s experts to learn if your company is eligible for either program.
The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ashmore Consulting LLC to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact Ashmore Consulting LLC or other tax professional prior to taking any action based upon this information. Ashmore Consulting LLC assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.
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