The Keystone Opportunity Zone (KOZ) Program is one of the nation’s boldest and most innovative economic and community development programs. This unique program develops a community’s abandoned, unused, underutilized land and buildings into business districts and residential areas that present a well-rounded and well-balanced approach to community revitalization. The Department of Community and Economic Development administers this partnership between state and local government in collaboration with the Department of Revenue and the Department of Labor and Industry.

Keystone Opportunity Zones (KOZ) are defined, parcel-specific geographic areas designated by local communities and approved by the state as economic development zones that can provide specific state and local tax benefits. Through credits, waivers and broad-based tax abatements, total taxes on economic activity in zones are significantly reduced. These benefits can affect the following taxes:

State Taxes

  • Corporate Net Income tax
  • Personal Income tax
  • Sales and Use tax
  • Mutual Thrift Institution tax
  • Bank and Trust Company Shares tax

Local Taxes

  • Earned Income/Net Profits tax
  • Business Gross Receipts, Business Occupancy, Business Privilege and Mercantile tax
  • Sales and Use Tax
  • Property tax

KOZ Applications by applicants that are property owners, businesses and residents must be completed online. Applicants must apply on an annual basis to maintain eligibility for KOZ benefits. Although renewal applications are accepted at any time throughout the calendar year for which they are applying for benefits, applicants are encouraged to apply as early as possible.

Completed applications will be electronically submitted to the Department and your local coordinator. The KOZ Coordinator in the North Central region covers Cameron, Clearfield, Elk, Jefferson, McKean and Potter counties. For general questions regarding the KOZ program, renewal applications or extensions please contact Katie Lenze, KOZ Coordinator at North Central Pennsylvania Regional Planning and Development Commission for more information.

The KOZ Program is not currently accepting applications for new parcels to be designated. Contact Tara Santore, KOZ Manager at the Department of Community and Economic Development (DCED) for more information regarding new designation opportunities.

KOZ LINKS:

Keystone Opportunity Zone (KOZ) Online Application

Keystone Opportunity Zone Interactive Map

Keystone Opportunity Zone Guidelines – 2019