PENNSYLVANIA INCENTIVES SUMMARY

Pennsylvania First Program (PA First)
PA First was established as a comprehensive funding tool to facilitate increased investment and job creation within the Commonwealth of Pennsylvania. Competitive projects must offer substantial economic impact, either for the Commonwealth as a whole or for the locality or region in which a company will locate or expand; a private match is required; job creation/retention is required, including a minimum of 100 new or retained full-time employees or an increase in full-time employment by at least 20 percent. Cash grants are based on the location, number of jobs, average wage as compared to other companies in the same industry in the area, and a capital investment of at least $10 for every $1 of program assistance. Companies must commit to operating at the approved location for at least 8 years.

Keystone Opportunity Zone (KOZ)
The KOZ program is a unique tool for developing abandoned, unused, and underutilized land and buildings into business districts and residential areas that present a well-rounded and well-balanced approach to community revitalization. KOZ provides tax exemption on most state and local taxes for a defined period.

Keystone Innovation Zone Tax Credit (KIZ)
The KIZ program creates designated geographic zones to foster innovation and create entrepreneurial opportunities by aligning the combined resources of educational institutions and the private sector. For-profit business entities 1) located within the geographic boundaries of a particular KIZ, 2) in operation less than 8 years, 3) operating within one of the KIZ targeted industry segments or sectors, 4) and meeting any other requirements specified by the Department of Community & Economic Development (DCED) may be qualified KIZ companies and eligible to participate in the KIZ Tax Credit Program.

A KIZ company may claim a tax credit equal to 50% of the increase in its gross revenues in the immediately preceding taxable year attributable to activities in the KIZ, over the gross revenues in the second preceding taxable year attributable to its activities in the KIZ. The KIZ Tax Credit is limited to $100,000 annually per KIZ company.

Manufacturing Tax Credit
Provides a tax credit to Companies that increase their annual taxable payroll by $1 million through the creation of new, full-time jobs. The credit is equal to five percent of the increase in annual taxable payroll.

WEDnetPA
WEDnetPA provides qualified employers with training funds to support training new and existing employees. WEDnetPA is a collaborative partnership of community colleges, state system universities, and other educational institutions working together to be responsive to the needs of Pennsylvania's business community. Employees must earn a minimum of $12 per hour, excluding benefits. The program assists in training residents of Pennsylvania employed in permanent, full-time jobs, and provides up to $2,000 per eligible employee, capped at $100,000 per company.