PA DCED: Tax Credit Awards to Early Stage Companies Supports Job Growth; Innovation
HARRISBURG, Pa., Jan. 29, 2013 /PRNewswire-USNewswire/ -- To position Pennsylvania as a national leader for technology development, the Corbett administration announced today the award of tax credits to nearly 180 companies to foster innovation and create entrepreneurial opportunities statewide.
"Governor Corbett is committed to ensuring Pennsylvania start-up companies have the resources they need to grow here and stay here," Department of Community and Economic Development Secretary C. Alan Walker said.
"Our support of early-stage companies is often that last piece of the puzzle needed to take new products to market and create high-paying jobs," Walker said.
The Department of Community and Economic Development has approved nearly $13.7 million through the Keystone Innovation Zone Tax Credit (Tax Credit) program for 179 companies located within one of the state's 28 Keystone Innovation Zones (KIZ) to support new technology development in the state.
A complete list of the companies that received the Tax Credit is available at 2012 KIZ-Tax-Credit-Awards.
"The governor is creating an economic climate in Pennsylvania where great ideas and outside-the-box thinking is not only encouraged, but embraced," Walker said. "This innovative tax credit helps build strong relationships between businesses and universities to create good-paying jobs for graduates right here at home."
Since its inception in 2006, the program has approved more than 975 tax credit applications for early stage technology companies, totaling nearly $62 million in credits awarded.
The sale and/or assignment of the Tax Credit has generated nearly $48.9 million in new capital for more than 850 applicants. The companies have used the additional funding for capital expenditures, expansion of their workforce, operational expenses, and to make the companies more attractive to venture investment.
EcoTechMarine, located in Bethlehem, Northampton County, received a $100,000 tax credit from the KIZ Tax Credit program. The company manufactures aquarium equipment including LED lighting, pumps, coral glue and accessories for aquariums.
"Our first tax credits helped us overcome a negative cash-flow situation early on giving us enough breathing room to grow and meet customer demand," said Patrick Clasen, co-founder of EcoTech Marine. "Our second tax credit funded the production inventory for our new product line. The KIZ Tax Credit program has enabled EcoTech to become a viable and successful leader in our industry."
Tax Credits provide for the award of up to $25 million annually. To be eligible, companies must be: a for-profit company that operates within the boundaries of a Ben Franklin Technology Development Authority-approved KIZ; less than eight-years-old; and operate within one or more of the target industry sectors including, technology, bio and life-sciences, information systems and technology, advanced manufacturing, defense, energy, agriculture and food processing.
If a KIZ company does not have a Pennsylvania tax liability for a year in which they qualify for the credit, the company can either sell or secure a third-party, independent broker to sell the tax credit on its behalf.
For more information about the KIZ Tax Credit program, or other economic development programs, visit www.newPA.com or call 1-866-466-3972.
Media contact: Theresa Elliott, DCED; 717-783-1132
SOURCE Pennsylvania Department of Community & Economic Development