Keystone Opportunity Zones
Using tax exemptions to increase investment in areas lacking development.
About
Keystone Opportunity Zones (KOZs) are areas designated by the Commonwealth of Pennsylvania that would benefit from additional investment. Businesses in these areas are exempt from most business taxes. The Department of Commerce manages this program for properties in Philadelphia.
KOZs target sites that are:
- Abandoned.
- Unused.
- Underutilized.
Properties and businesses located within these designated zones pay little-to-no state and local business taxes.
This is done through:
- Tax credits.
- Tax waivers.
- Broad-based tax abatements.
The tax relief is temporary.
Connect
| Address |
1515 Arch St., 12th floor
Philadelphia, PA 19102 |
|---|---|
|
sopheap.heng |
|
|
Phone:
(215) 683-2007
|
What taxes are waived or reduced?
State taxes
City taxes
- Net profits tax
- Business income & receipts tax
- Use and occupancy tax
- Sales, use, and hotel occupancy tax
- Real estate tax*
*While Real Estate tax is abated for most KOZ properties, those added to the program after 2016 must enter a PILOT agreement with the City. The PILOT agreement requires the property owner to make partial payments in place of the taxes that would otherwise be due.
Process and eligibility
Your business or property must be located in a Keystone Opportunity Zone (KOZ) to be eligible for KOZ incentives.
Click on the highlighted areas within the map to see eligible KOZs.
- Keystone Opportunity Zone
Application details
- To be approved, you must be up to date on all City and State taxes.
- You must be compliant with applicable laws and regulations.
- The application is available through the State of Pennsylvania.
- Businesses must resubmit applications yearly.
- Deadline to apply is December 31.
A list of properties with full addresses, OPA numbers, and expiration dates can be accessed here.
Apply for the program
After you've determined your eligibility, download, fill out, and submit the application.
