The Keystone Opportunity Zone program (KOZ) was established to facilitate the development of a community’s abandoned, unused, underutilized land and buildings into business districts and residential areas to allow community revitalization.

The Department of Community and Economic Development administers the KOZ program in collaboration with the Department of Revenue (state taxes) and the Department of Labor and Industry (unemployment compensation taxes).

Through credits, waivers and tax abatements, total taxes on economic activity in KOZ zones can be significantly reduced.

These benefits affect the following taxes:

State:

• Corporate net income tax
• Personal income tax
• Sales and use tax
• Mutual thrift institutional tax
• Bank and trust company shares tax

Local:

• Earned income/net profits tax
• Business gross receipts, business occupancy, business privilege and mercantile tax
• Sales and use tax
• Property tax

For further information about the KOZ program, including eligibility and the application process, please contact Rob Gundlach at RGundlach@foxrothschild.com or 215.918.3636.