Recently enacted legislation in Pennsylvania amends the Keystone Opportunity Zone (KOZ), Keystone Opportunity Expansion Zone (KOEZ) and Keystone Opportunity Improvement Zone (KOIZ) Act. The legislation repeals the law’s original sunset date of December 31, 2018 and grants authority to the Department of Community and Economic Development (DCED) to extend the tax benefits for a period of seven to ten years from the date of occupancy or the date of expiration for unoccupied parcels in any zone set to expire. An application for extension must be filed with the DCED three months prior to expiration.
Parcels that are deteriorated, underutilized, or unoccupied may be eligible for expansion of an existing KOZ, KOEZ, or KOIZ or designation as a new KOIZ. Parcels no larger than 15 acres which are contiguous to an existing zone are eligible if expansion includes job creation or capital investment. The DCED may designate 15 additional KOEZs of between 10 and 350 acres that meet the necessary conditions. Businesses that commit to significant investment ($1 billion) and job creation (400 full-time positions) may be entitled to additional tax benefits in a KOEZ for up to 15 years.
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This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.