Co-Sponsorship Memo Details

Keystone Innovation Zones (KIZ) throughout the Commonwealth have successfully launched companies and spurred job growth in life sciences, advanced manufacturing and other cutting-edge industries. I will soon introduce legislation that will amend Title 12 (Commerce and Trade) of the Pennsylvania Consolidated Statutes, further providing for KIZ tax credits and providing for research and development tax credits for KIZ companies, for KIZ company corporate net income tax net loss deduction transfer program and for KIZ company tax credits for new jobs.

We can make the business climate for these promising companies even better by improving their access to much-needed capital through the following provisions:

• It will let KIZ companies sell their KIZ tax credits and research & development tax credits four months earlier than is currently allowed, thus providing them much-need funding.
• It will let KIZ companies sell job-creation tax credits. Currently, many young companies do not create jobs and take advantage of job-creation tax credits because such credits are only of value when companies have profits, which many start-ups do not have.
• It will increase the value of Research & Development tax credits by adding the types of taxes against which they can be used. Expanding the current list to include the bank and trust company share tax, the title insurance companies share tax, the insurance premiums tax and the mutual thrift institutions tax would increase the tax credits’ value.
• Finally, it will let KIZ companies trade their net-operating loss deductions

I hope you will join me in co-sponsoring this bill that will create jobs by improving access to funding for the Commonwealth's most promising start-up companies.