Fifteen startup companies in Chester County and Delaware County have been awarded over $1.2 million in tax credits by the Pennsylvania Department of Community and Economic Development.
Brandywine PhootonicsThese companies participate in the Ideas x Innovation Network and were included in Governor Tom Wolf’s December 18, 2018 announcement of the approval of Keystone Innovation Zone (KIZ) tax credits for 255 early-stage technology companies state-wide.
Fourteen of the fifteen companies received the 2018 maximum award of $84,182, based on year-over-year increase in revenue.
Since 2007, over $13.7 million in KIZ tax credits have been awarded to 66 companies in Chester and Delaware Counties through their participation in the Ideas x Innovation Network (formerly the Chester County KIZ and Delaware County KIZ).
The KIZ tax credit program is the cornerstone of the Ideas x Innovation Network and is one of the largest unencumbered sources of financial support for high growth startup companies in Pennsylvania.
The KIZ tax credit program was established to encourage innovation and entrepreneurship in and around Pennsylvania’s colleges and universities.
A total of up to $15 million in credits are available statewide each year to eligible companies, with a maximum award of $100,000 annually.
To qualify for the tax credit, a company must be in operation for less than eight years, show that gross revenues have increased over the previous year, are located within a Keystone Innovation Zone, and are operating within a targeted industry sector such as technology or life sciences.
The companies that are awarded KIZ tax credits and have no tax liabilities can sell those credits for cash. The sales of these credits help provide essential capital as they build their businesses meeting critical needs including covering capital expenditures, workforce expansion, and operational expenses, as well as making companies more attractive to venture investment.
“The KIZ tax credits have been indispensable in Brandywine Photonics growth, allowing us to build our cleanroom, hire a new Director of Engineering, and cover gaps in payment due to Federal Government funding fluctuations,” comments John Fisher, Founder and President of multiple year awardee, Brandywine Photonics. “We are now hiring two new staff due in no small part to the extra funds, which helped us go from R&D to our first major weather satellite instrument contract. ”
The deadline to apply for KIZ Tax Credits is September 15th of each year. Currently, revenue from grants, sales, royalties and other income can be included in tax credit applications, but equity and early-stage venture investments cannot be considered.
Companies located in Chester County or Delaware County interested in applying for a tax credit or other resources available to early-stage companies should call Marianne Stack at (610) 321-8222 or email firstname.lastname@example.org for more information.
About the Ideas x Innovation Network
An initiative of the Chester County Economic Development Council, the Ideas x Innovation Network (i2n) is the exclusive nonprofit virtual incubator that supports the startup and emerging technology companies in Chester and Delaware Counties. i2n provides a full spectrum of services including financial incentives, physical space, access to research and critical connections to the startup community. Through i2n, entrepreneurs are strategically connected with established professionals whose experience and knowledge become pivotal stops on an emerging company’s roadmap toward success.
For more information about the Ideas x Innovation Network, call Patrick Hayakawa at (610) 321-8205 or email email@example.com .