The Pennsylvania Department of Community and Economic Development’s successful Keystone Opportunity Zone (KOZ) program has created more than 46,000 acres of tax-free developable land in Pennsylvania. You can learn more about the program at NewPA Keystone Opportunity Zone site or by downloading a fact sheet.

Keystone Opportunity Zones have had a tremendous positive influence in Allentown, bringing over $100 million in investment and creating over 100 jobs. This program resulted in the development of the Butz Corporate Center, the Plaza at PPL Center, the America On Wheels Museum, the Townes at Trexler Square, Bridgeworks by the Creek Industrial Center, Center Square Apartments and the Allentown Brew Works.

Tax Liability in Keystone Opportunity Zones

Binding ordinances and resolutions were passed granting the waiver, abatement or exemption of certain state and local taxes. Depending on the situation, the tax burden may be reduced to zero through exemptions, deductions, abatements, and credits for the following:

• State Taxes: Corporate Net Income Taxes, Capital Stock & Foreign Franchise Tax, Personal Income Tax, Sales & Use Tax, Bank Shares and Trust Company Shares Tax, Alternative Bank and Trust Company Shares Tax, Mutual Thrift Institutions Tax, Insurance Premiums Tax
• Local Taxes: Earned Income/Net Profits Tax, Business Gross Receipts, Business Occupancy, Business Privilege and Mercantile Taxes, Local Real Property Tax, Sales and Use Tax