In an effort to spur
investment and economic development in areas where little or no development
has taken place, The Commonwealth of Pennsylvania created The Keystone
Opportunity Zone Program in 1999.
Keystone Opportunity Zones (KOZs) are
defined, parcel-specific areas where a KOZ property owner and/or
business located in a KOZ could enjoy greatly reduced or tax-free
status until 12/31/2010. Philadelphia designated properties as KOZ
in twelve general areas throughout the City. These general areas
are known as KOZ Subzones.
Because of the great success of the
KOZ Program, the Commonwealth of Pennsylvania authorized a second
round of KOZ designations in 2001. These new areas are often referred
to as Keystone Opportunity Expansion Zones or KOEZs. The only significant
difference between the KOEZs and KOZs is the expiration date. KOEZs
benefits expire on 12/31/2013. The City of Philadelphia has designated
eight areas as KOEZ Subzones.
In 2003, a limited third round of
KOZs was authorized. They are referred to as Keystone Opportunity
Improvement Zones (KOIZs). Only the governor could designate such
zones. This designation also required the concurrence of the local
government. In 2009 and again in 2012, the state authorized the extension of the term of vacant parcels and a limited addition of new properties to the KOZ.
WHAT TAXES ARE
WAIVED OR REDUCED?
- Corporate Net Income
- Capital Stock & Foreign Franchise Tax
- Personal Income Tax (Partnerships & Sole
- Sales & Use Tax
- Mutual Thrift Institutions Tax
- Insurance Premiums Tax
- Business Privilege Tax
- Net Profits Tax
- Real Estate Taxes
- Sales and Use Tax
CONSULT YOUR ACCOUNTANT TO SEE HOW THESE BENEFITS
APPLY TO YOUR PARTICULAR COMPANY.