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Sellable Tax credits for early-stage companies
The University City KIZ provides tax credits to early-stage tech and life sciences companies. With a pool of up to $15 million in tax credits available to eligible companies annually, the KIZ tax credit program significantly contributes to the ability of young KIZ companies to transition through the stages of growth. To date, almost $8 million in KIZ Tax Credits have been awarded to 48 University City KIZ companies since 2006.
John Nosek, Founder and Vice President for Research and Product Innovation at Guiding Technologies.
Established in 2004, the University City Keystone Innovation Zone (UC KIZ) is among the oldest KIZs in the Commonwealth. A partnership between Drexel University, Thomas Jefferson University, the University of Pennsylvania, the University of the Sciences, The Wistar Institute, BioAdvance and the University City Science Center (the fiscal agent), the UC KIZ is composed of some of the most respected research and academic institutions in Pennsylvania. The UC KIZ also offers programming under the Quorum umbrella.
With a total pool of up to $15 million in tax credits available to KIZ companies annually, the KIZ tax credit program significantly contributes to the ability of young KIZ companies to transition through the stages of growth. Eligible companies can access up to $100,000 annually in sellable tax credits.
Eligible companies must be:
How it works:
A KIZ company may claim a tax credit equal to 50% of the increase in its gross revenue in the immediately preceding taxable year, over the company’s gross revenue in the second preceding taxable year. The maximum KIZ Tax Credit per company is $100,000 annually.
For example, if XYZ Co. was founded or moved into the KIZ in 2016, the company would be eligible to apply for Tax Credits in 2018. The formula: XYZ Co. would subtract 2016 gross revenue from 2017 gross revenue and receive a tax credit for 50% of the difference, up to $100,000.