On Wednesday (March 23) Mayor Jim Kenney and the Philadelphia Department of Commerce, alongside The University City Keystone Innovation Zone (UC KIZ), announced that the UC KIZ has received approval from the Pennsylvania Department of Community and Economic Development (DCED) to expand its existing boundaries to include the growing tech community in Old City, including the area along N. 3rd Street, known as “N3rd Street.
As a result of the expansion, a new swath of companies in Philadelphia’s growing innovation ecosystem will be able to access up to $100,000 annually in sellable tax credits. The DCED could award as much as $1.2 million in tax credits to newly eligible companies within the expanded zone in 2017. Many KIZ Tax Credit awardees invest those funds in new employees, while others purchase equipment to further develop and commercialize products and technologies.
“We need to nurture the talent pipeline that exists in Pennsylvania from higher education to business ownership by providing as many opportunities as possible to support their efforts,” said Department of Community and Economic Development Secretary Dennis Davin. “We are thrilled with the success of the KIZ program and are extremely excited with the increased opportunities available in Philadelphia through the expansion of the UC KIZ.”
Pennsylvania’s Keystone Innovation Zone Tax Credit is a fundamental component of the KIZ program. Up to $25 million in credits are available each year to eligible companies. Companies without tax liabilities can sell their tax credits themselves or secure a third-party, independent broker to sell the credits on their behalf.
“The expansion of the UC KIZ is an incredibly important development for Philadelphia's startup community. The inclusion of Old City will bolster the already exciting growth of tech companies we've seen on and around N3rd St. We’re committed to helping Philadelphia’s innovation community flourish throughout the City, and tools like KIZs are a big part of that equation.” Mayor Jim Kenney