The Keystone Opportunity Zone is a premier tax incentive and provides companies and investors a unique opportunity to develop land with greatly reduced to no state and local taxes, a result of partnerships among state and local taxing bodies, school districts, economic development agencies and community-based organizations.
Community Leaders Support Smart Economic Growth
“Public schools across the Commonwealth continually struggle balancing revenues with expenditures because a substantial percentage of a school district’s budget is gained through an ever increasing local revenue share. Encouraging local business growth is critical to the survival of public education funding. The hope is that with the initial short term loss of local revenue because of Keystone Opportunity Zones, long term gains could include a more robust workforce and a much needed increase in local tax revenue.” Dr. Cathy S. KeeganCathy S. Keegan, Ed.D.
Central Pennsylvania Region KOZ Coordinator
Betsy Lockwood, Project Development/ Grants Manager
SEDA-Council of Governments
201 Furnace Rd.
Lewisburg, PA 17837
The message is clear, these communities want to see quality companies providing smart economic opportunities and growth!
Keystone Opportunity Zones (KOZs) are areas designated by the local taxing bodies including the municipality, county, and school district, all passing a resolution designate a property for a KOZ, and then final approval by the Commonwealth of Pennsylvania that would benefit from additional investment. Businesses that make investments in these designated areas are eligible to be exempt from most state and local business taxes for a designated amount of time, some extended until 2028. The Pennsylvania Department of Community & Economic Development manages this program and a regional coordinator is designated to provide answers and information.
What taxes are waived or reduced?
- State corporate net 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.
Process and eligibility
Your business or property must be located in a Keystone Opportunity Zone (KOZ) to be eligible for KOZ incentives. Contact the property contact or the regional KOZ coordinator with any questions or requests for information.
Click on the brochure image above or this link to view a list of designated Keystone Opportunity Zone properties in Central Pennsylvania.