Q: What is a Keystone Innovation Zone (KIZ)?
A: A Keystone Innovation Zone (KIZ) is a designated zone that may be established in communities that host institutions of higher education – colleges, universities, junior colleges and technical schools. These zones are designed to foster innovation and create entrepreneurial opportunities. They do this by gathering and aligning the combined resources of educational institutions, private businesses, business support organizations, commercial lending institutions, venture capital networks (including angel investors) and foundations.
Q: What is the focus of the Chester County KIZ?
A: The Chester County KIZ is dedicated to creating opportunities for transferring ideas between innovators, growing companies and established business in the life science/ bio technology and information technology industries.
Q: What are the minimum requirements to be a KIZ eligible company?
A: The minimum requirements to be a KIZ eligible company in Chester County are:
The company must be focused on the life science/bio technology or information technology industries.
The company must have eight years or less in operation.
The company must operate within the designated geographically designated boundaries of
the Chester County KIZ.
Q: Is there a fee to participate in the KIZ?
A: No. There is no membership fee or application process to become a KIZ company.
Q: What are the Chester County KIZ boundaries?
A: The Chester County KIZ is seven knowledge nodes throughout the county comprised of forty-six corporate centers. To view a map of the nodes, click on locations on top menu bar.
Q: What are the benefits of building/locating my facility in the KIZ?
A: Incubator, multi-tenant facility, research & development, workforce education and design center projects are eligible for special priority financing from PIDA, up to 75% of the project cost (traditionally only up to 40%), at a low interest rate. KIZ companies and developers are also able to take advantage of the commonwealth’s land acquisition and site preparation programs such as the proposed Business in Our Sites program to ensure space needs are met.
Q: Are tax credits available?
A: Yes. Targeted training and education opportunities provided by the Research and Development Tax Credit (to $30 million) are available for 2005-2006. Companies without a tax liability will have the ability to sell their tax credits. In addition, the KIZ Tax Credit will be offered beginning in the 2006 tax year, making $25 million per year in tax credits available for KIZ companies that are less than eight years old. Businesses can also sell their tax credits if they prefer.
Q: How does being in a KIZ help me train qualified employees?
A: The commonwealth assists in funding curricula development and related equipment to train workers needed for the new technology being developed and applied by KIZ companies or design centers. Also, KIZ companies will have preferential status for customized job training funds, online training offered through the Guaranteed Free Training program, or other forms of workforce development and assistance.
Q: Is special funding for equipment available for companies located in a KIZ?
A: Yes. The commonwealth may provide funding for eligible equipment to be used in design centers and workforce and education training programs.
Q: Does the KIZ foster budding entrepreneurs?
A: The Ben Franklin Technology Development Authority provides funding to enhance entrepreneurial assistance and technology commercialization programs offered by institutions of higher education that focus on business attraction services and economic development. This can include the creation of an “intellectual property” bank to collect IP that can be useful to start-up companies and researchers.
Q: Does the KIZ help me find interns?
A: Yes. The commonwealth will provide seed funding to launch the coordination of internship programs in KIZs. Any efforts must be in coordination with existing programs at the educational institution, private industry or the community.
Q: How does being in a KIZ help me train qualified employees?
A: The commonwealth assists in funding curricula development and related equipment to train workers needed for the new technology being developed and applied by KIZ companies or design centers. Also, KIZ companies will have preferential status for customized job training funds, online training offered through the Guaranteed Free Training program, or other forms of workforce development and assistance.
Q: How does a developer benefit from working with a KIZ company?
A: Developers working with KIZs will receive priority review of applications for financing from the proposed Real Estate and Acquisition Development Fund.
Q: Are there any additional community funds related to KIZs?
A: Yes. Where appropriate, the KIZ programs could access funding services contained in community programs to upgrade the business and retail corridors of the KIZ.
Q: Is additional assistance available for small businesses and start-ups?
A: The innovation Partnership, a newly formed assistance collaborative for technology companies, will work with KIZs to facilitate application for federal Small Business Investment Resource (SBIR) awards. Also, KIZ partnerships will pursue opportunities to provide initial rental subsidiaries or other start-up needs.
Q: Do KIZ companies have priority for state-supported assistance?
A: Yes. The commonwealth ensures that state-supported companies and economic development organizations such as Small Business Development Centers, Ben Franklin Technology Partners and the Life Sciences Greenhouse are active partners and prioritize their programs and enterprise support services to aid in the success of KIZ companies. Also, KIZ companies have priority consideration for investments from state-funded seed capital or early stage funds. These include the Health Venture Investment Account (Tobacco Settlement), the Ben Franklin Technology Development Authority and other proposed venture capital programs.
Q: Why did Pennsylvania create the KIZs?
A: Pennsylvania ranks 42nd in employment growth. Our research and development clusters are not translating well into entrepreneurial activity and jobs – 25th in "gazelle" jobs, 21st in patents issued, 20th in university spinouts. Pennsylvania continues to lose many of its talented young professionals and graduates. This program creates a "knowledge neighborhood" in which educational institutions, economic developers, businesses, capital sources and community leaders can connect with one another quickly and effectively to provide a network of support and resources. It ensures that Pennsylvania's ideas are effectively developed into positive economic activity.
Q: How many KIZs will there be?
A: While there was no limit to the number of KIZs that could be established, they were required to be established on or before July 1, 2007. Funding availability had a direct impact on the number of KIZs that were established. As of January 1, 2008, there were twenty-nine KIZs statewide.
Q: Are guidelines available for becoming a KIZ?
A: Program guidelines can be found at www.newpa.com.
Q: Are KIZs similar to Keystone Opportunity Zones?
A: Although they have similar names, they are very different. Keystone Opportunity Zones strive to improve the economy of blighted areas through tax benefits. Companies that are established as a direct result of the formation of a KIZ are not likely to have tax liabilities to the commonwealth because of the lack of profits that are characteristic of early stage companies.
Q: Who administers the KIZ program at the state level?
A: The Department of Community and Economic Development (DCED), Technology Investment Office administers this program.
Q: Who Administers the Chester County KIZ?
A: The Chester County Economic Development Council serves as the KIZ coordinator. The coordinator is an organization chosen by a KIZ partnership and agreed to by the Department of Community and Economic Development (DCED) to administer the activities of the KIZ, providing office, staff support and employment of a project manager.