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WHAT IS A KEYSTONE OPPORTUNITY ZONE?
 

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?

STATE TAXES

  • Corporate Net Income
  • Capital Stock & Foreign Franchise Tax
  • Personal Income Tax (Partnerships & Sole Proprietors)
  • Sales & Use Tax
  • Mutual Thrift Institutions Tax
  • Insurance Premiums Tax

CITY TAXES

  • 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.