Transferable Tax Credits:

Tax credits are available to eligible companies located within a KIZ. A company may claim a tax credit equal to 50% of the increase in that company' s gross revenue from year one to year two. In the event the company posts a revenue increase but doesn' t maintain the tax liability then the company may sell the credit to another Pennsylvania based firm. The purchasing company will then apply the credit. The tax credit shall not exceed $100,000 annually and may be carried forward for up to four years.

Example:
Year 1,
ABC Company' s gross revenue = $40,000
Year 2,
ABC Company' s gross revenue = $60,000
Year 3,
ABC Company may apply for a tax credit of $10,000 or sell the credit to another PA based company for $10,000. (50% of the $20,000 increase in gross revenue from year 1 to year 2.)

Applications must be filed by September 15 of each year, beginning on September 15, 2006

Preferential Consideration for DCED Programs:

KIZ eligible companies applying for DCED programs, including but not limited to PIDA, MELF Funding and Job Creation Tax Credits, will receive preferential consideration. In simple terms, a company' s application moves from the bottom of the pile to the top in an effort to expedite corporate growth within the KIZ.

Internships:

As the KIZ coordinator, NPTI can help you find an intern(s) and will provide the student a stipend up to $1,000.

Any interested and eligible companies should send the KIZ coordinator a job description of the internship position. NPTI will work with the thirteen local college and university career development offices to help you recruit your intern(s). A $1000 stipend is available to the student to offset a portion of the cost to hire an intern(s). The stipend is payable to the student in increments of $500 at 75 hours and 150 hours.

Innovation Grants to Partner with the Region’s Institutions
of Higher Education

The Lackawanna and Luzerne KIZ is eligible for up to $250,000 for technology transfer activities. The grant money is available to Institutions of Higher Education to promote collaboration and partnerships within business and industry along with enhancing the current technology transfer programs.

If your company is interested in partnering with a college or university to develop a product or solve a technical problem contact the KIZ coordinator. Innovation grants may be available to offset a portion of the project cost.