The Keystone Opportunity Zone is a unique opportunity to develop land with greatly reduced state and local taxes, a result of partnerships among state and local taxing bodies, school districts, economic development agencies and community-based organizations.

The Office of Industrial Partnerships (OIP) fosters strategic relationships with industry partners and supports Penn State’s entrepreneurial ecosystem, accelerating the pace at which technologies move from discovery to implementation and delivering new-found value & differentiation to industry and economic impact to Pennsylvania and beyond. OIP works closely with the other units within the Office of the Vice President for Research to coordinate sponsored research, technical matchmaking, technology licensing, contracting, research compliance and new venture formation.

A sampling of some of the larger incentive programs offered by the state of Pennsylvania and Focus Region are summarized below.  Click on their headings to follow a hyperlink for more details and other available programs.  Please check back for additions and updates.

TAX BASED

PA’s Capital Stock & Foreign Franchise Tax is officially history. Full story:

KOZ

Providing a once-in-a-lifetime opportunity to develop, construct or renovate properties throughout Central Pennsylvania, the Keystone Opportunity Zone program offers greatly reduced or completely eliminated state and local taxes through 2020 in most cases.

To learn more about the Keystone Opportunity Zone program, click here.

To see a list of KOZ sites in Central Pennsylvania click here.

Pennsylvania Alternative Energy Credit
15% of net cost of alternative energy production. Limit of $1 million per taxpayer.

JCTC
(Job Creation Tax Credit) – $1,000 to $3,000 per new job created, not available in a KOZ.

Elimination of Fixed-Wing Sales & Use Tax

Those in the aviation industry now have one more reason to do business in Pennsylvania. With the elimination of the six percent sales and use tax on parts and services for fixed-wing aircraft, sourcing maintenance, overhauls and repairs can all be performed tax-free in a state with prime access to six of the 10 largest markets in the U.S., six international airports and a strategic location in the Northeast U.S. corridor

MEDFAS is a group of Tax-Exempt Financing experts who are focused on educating and assisting companies that are interested in borrowing on a tax-exempt basis to fund expansion projects. They assist manufacturers in accessing some of the $90 Billion the U S Treasury sets aside to pay for a manufacturer interest expense to cover expansion projects. The Treasury pays up to 40% of your interest expense. A $10 million dollar loan using tax exempt financing could save a manufacturer over $2 million dollars.

GRANTS

Pennsylvania First Program

Rail Freight Grants and Resources

LOANS

PIDA
(Pennsylvania Industrial Development Authority Loan) 3.5%,  $35,000/job created, maximum of $2 million.  Eligibility varies by county and ranges from 50% to 60%.

MELF
(Machinery & Equipment Loan Fund) 3.5%, $25,000/job created, maximum of $5 million

EDUCATION

WEDNET– Guaranteed Free Training
$450/employee for entry level training or $800/employee for information technology

CJT
(Customized Job Training) 75% of costs for job-specific training.

What is the Keystone Opportunity Zone (KOZ) incentive?

The Keystone Opportunity Zone is unique opportunity to develop land with greatly reduced state and local taxes, a result of partnerships among state and local taxing bodies, school districts, economic development agencies and community-based organizations.

Check out KOZ!