In order to qualify for the tax credit in the BioLaunch611+ KIZ:

• Your company must be operating within the designated BioLaunch611+ KIZ geographical area;
• Your company must be a life sciences or life sciences related company;
• Your company must have been in operation for less than 8 years; and,
• Your company must have revenues in two consecutive years that are attributable to your location in the BioLaunch611+ KIZ. Revenues can include grant funds from any source whatsoever (e.g., SBIR Grant).

If this is your company, you qualify for the KIZ Tax Credits. Here is the process to obtain and sell your credits:

1. The first year revenue amounts that can be attributable to the BioLaunch611+KIZ are revenues from May 18, 2006 (the day the BioLaunch611+ KIZ was approved) through December 31, 2006.



2. The second year revenue amount that will be attributable to the BioLaunch611+KIZ will be revenues from January 1, 2007 through January 31, 2007.



3. Your KIZ tax credit application amount will be for (second year revenues minus first year revenues) X 50%. The maximum KIZ credit that can be awarded in any one year is $100,000.



4. Submit the KIZ Tax Credit Application by September 15, 2008.



5. Receive your KIZ Tax Credit Award on about December 15, 2008.



6. Use the credits to offset your tax liability or sell any unused tax credits for cash.

Click here to download KIZ Tax Credit Guidelines.

Research and Development Tax Credits

Does your company have research and development (R&D) expenditures?

Then you may be entitled to Pennsylvania R&D Tax Credits. These innovative tax credits can be used to offset your PA tax liability or sold for cash to grow your business.

In order to qualify for the Pennsylvania R&D Tax Credit:

• Your company must have qualified research expenditures (QREs) as defined in Section 41(B) of the Internal Revenue Code of 1986, incurred for PA qualified research and development conducted within the Commonwealth of Pennsylvania;
• Your company must have QREs from the current year and at least one preceding year (i.e., your company’s base year cannot have $0 QREs); and,
• There must be an increase in QREs from the preceding year(s) to the current year.

If this is your company, you qualify for the PA R&D Tax Credit.  Here is the process to obtain and sell your credits:

1. Obtain a copy of the Pennsylvania Research and Development Tax Credit Application for 2007, Form (REV-545CT(5-07)PC) which can be obtained from the PA Department of Revenue website.



2. Your PA R&D Tax Credit application amount will be for a percentage of your company’s (2006 QREs less [the greater of ½ of your 2006 QREs vs. the average of the QREs for 2005, 2004, 2003, 2002]). The percentage will be 20% of this increase for companies with $5 million in assets or less and 10% of this increase for companies with over $5 million in assets.



3. Ensure that the PA R&D tax credit application is submitted no later than September 15, 2007.



4. You will receive your PA R&D Tax Credit Award on about December 15, 2008.

You can then use the credits to offset your tax liability or sell any unused tax credits for cash via the PA Department of Community and Economic Development’s Research and Development Tax Credit Assignment Program.

For a copy of Pennsylvania's Research and Development Tax Credit application, click here.

Click here to download the application to Transfer Your PA Research and Development Tax Credits.