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Pennsylvania State Senate
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Senate of Pennsylvania
Session of 2013 - 2014 Regular Session


Posted: April 17, 2013 11:35 AM
From: Senator Andrew E. Dinniman
To: All Senate members
Subject: KIZ’s and job creation

I will soon introduce a bill that will create jobs by improving access to funding for the most promising start-up companies.
My legislation will amend the 2004 Keystone Innovation Act. Our 28 KIZ’s throughout the Commonwealth have successfully launched companies and spurred job growth in life sciences, advanced manufacturing and other cutting-edge industries. But we can make the business climate for these promising companies even better by improving their access to much-needed capital through the following KIZ bill:
  • It will let KIZ companies sell their KIZ tax credits and research & development tax credits four months earlier than is currently allowed, thus providing them much-need funding.
  • It will let KIZ companies sell job-creation tax credits. Currently, many young companies do not create jobs and take advantage of job-creation tax credits because such credits are only of value when companies have profits, which many start-ups do not have. Making job-creation tax credits tradable would give them value and incentivize more starting companies to create jobs and apply for these credits.
  • It will increase the value of Research & Development tax credits by adding the types of taxes against which they can be used. Currently, the purchasers of such credits can only use them to offset personal income, corporate net income or capital stock and franchise taxes. Expanding that list to include the bank and trust company share tax, the title insurance companies share tax, the insurance premiums tax and the mutual thrift institutions tax would increase the tax credits’ value.
  • Finally, it will let KIZ companies trade their net-operating loss deductions as companies in New Jersey, Ohio, Kentucky and Tennessee are allowed to do.

Introduced as SB881