About this programme
The Keystone Innovation Zone (KIZ) Tax Credit Program is run by Pennsylvania's Department of Community & Economic Development (DCED) to reward young, innovative companies operating inside one of the state's designated Keystone Innovation Zones.
The credit is drawn from a statewide pool of $15 million available annually across all KIZ companies.
How it works
The credit equals 50% of the increase in a KIZ company's gross revenues year-over-year, capped at $100,000 annually per company.
Credits first offset the company's own Pennsylvania tax liability under the personal income tax or corporate net income tax.
Unused KIZ Tax Credits can be applied against the company's tax liability for up to five years, or they can be reassigned or sold to another taxpayer.
Who can apply
The applicant must be a for-profit entity physically operating within a designated Keystone Innovation Zone.
The company must be less than 8 years old and operating in one of that zone's targeted industry segments, plus meet additional DCED requirements.
How to apply
- Submit an application online through the Enterprise eGrants System by the December 1 deadline each year.
- Awards are announced on May 1 of the following year.
Documents you’ll typically need
- KIZ Tax Credit Worksheet (non-apportionment or apportionment version, as applicable)
- KIZ Coordinator Certification Form
- Tax Clearance Form
- Supporting affidavits for any credit sales or assignments
Frequently asked
How is the tax credit calculated?
It's 50% of the increase in the company's gross revenues from the prior year, capped at $100,000 per company per year.
When is the application deadline?
December 1 of each year, submitted through the Enterprise eGrants System, with awards announced May 1 of the following year.
What if I can't use the full credit against my own taxes?
Unused KIZ Tax Credits can be carried forward against your own tax liability for up to five years, or reassigned or sold to another taxpayer.
Is there a limit on how much credit is available statewide?
Yes, the program draws from a total pool of $15 million in tax credits available to KIZ companies each year.
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.