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Eligible life science and life science-related companies operating in the BioLaunch611+ KIZ territory may be eligible for up to $100,000 of KIZ Tax Credits. These innovative tax credits can be used to offset PA tax liability or they can be sold for as much as $90,000 in cash to grow your business.

Your company may qualify for tax credit in the BioLaunch611+ KIZ if it is:

operating within the designated BioLaunch611+ KIZ territory;
a life sciences or life sciences-related company;
in operation for less than 8 years; and

if your company has increasing revenues in two consecutive years attributable to your location in the BioLaunch611+ KIZ. Revenues can include grant funds from any source (e.g., SBIR Grant).

To obtain (2009 KIZ Application) and sell your credits:

1. The first or base year (2007) revenue amounts that can be attributable to the BioLaunch611+KIZ are revenues from January 1, 2007 through December 31, 2007.

2. The second or comparable year (2008) revenue amounts that will be attributable to the BioLaunch611+KIZ will be revenues from January 1, 2008 through December 31, 2008.

3. Your KIZ tax credit application amount will be for (comparable year revenues including property and payroll factor calculations minus base year revenues including property and payroll factor calculations) 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, 2009.

5. Receive your KIZ Tax Credit Award on about December 15, 2009.

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

Research and Development Tax Credits

BioLaunch 611+ KIZ companies that have research and development (R&D) expenditures may be entitled to Pennsylvania R&D Tax Credits. These innovative tax credits can be used to offset PA tax liability or sold for cash to grow your business.

Your company may qualify for the Pennsylvania R&D Tax Credit if:

it has 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;
it has QREs from the current year and at least one preceding year (i.e., your company’s base year cannot have $0 QREs); and,
there was an increase in QREs from the preceding year(s) to the current year.

To obtain (2009 R&D Application) and sell your credits:

1. Obtain a copy of the Pennsylvania Research and Development Tax Credit Application for 2008, 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 (2007 QREs less [the greater of ½ of your 2007 QREs vs. the average of the QREs for 2006, 2005, 2004, 2003]). 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, 2009.

4. You will receive your PA R&D Tax Credit Award on about December 15, 2009.

These credits can be used to offset tax liability or any unused tax credits can be sold for cash through the PA Department of Community and Economic Development’s Research and Development Tax Credit Assignment Program.

Download a copy of Pennsylvania's Research and Development Tax Credit application.
Download the application to Transfer Your PA Research and Development Tax Credits.

PA Tax Credit Programs