PA FAQs

Businesses making purchases of items subject to Sales and Use Tax - other than motor vehicles and certain real property - will be exempt from state and local Sales and Use Tax on specific materials utilized in a zone or expansion zone. Businesses will also enjoy tax reductions, exemptions, abatements, or credits in corporate taxes, franchise taxes, financial institution taxes, income taxes, and real estate taxes.

Keystone Innovation Zones (KIZs) are designated zones that may be established in communities that host institutions of higher education – colleges, universities, and associate degree 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 (KIZ partners) In other words, where a partnership of these organizations is formed, a KIZ is possible.

The Governor’s Action Team (GAT) awaits your call. You’ll find seasoned economic development professionals who report directly to the Governor and the Secretary of the Department of Community and Economic Development, and are regionally located throughout the state to help your company with major expansions or relocating to Pennsylvania. They can be a one-stop shop for financial and technical assistance for your expansion or move to Pennsylvania. The GAT works with domestic and international businesses, as well as professional site consultants, on projects involving significant investment and job creation opportunities. Confidentiality is of utmost priority. Visit newPA.com or call 1888-483-2672.  

As a general rule, firms are not required to pay income taxes (and are not assessed any by the state) in years in which they do not generate any profits. Pennsylvania does, however, have a “Capital Stock Tax” that is assessed against the ownership interests of both Corporations and LLC’s. The amount of Capitol Stock Tax that is charged is determined by examining valuie of the enterprise based on a fixed formula, which primarily examines an enterprise’s net income and net worth. As a result, the amount of the Capital Stock Tax that is ultimately assessed against your firm could be very low, if there is now profit. In recent years, Pennsylvania has been steadily lowering the rate of the Capital Stock Tax, which will be entirely phased out by the year 2011.

Real estate represents one of the Commonwealth's most important and valuable assets. It is a crucial platform for building Pennsylvania's economy and improving the lives of its citizens and the growth potential of its communities. Yet far too many projects never get completed. They line up two-thirds of the financing they need from traditional sources, only to hit a wall finding the final third. All too often such gaps in financing mean the difference between a successful community enhancement and an unused or abandoned site. With Building PA in place, we can use Commonwealth resources to close that funding gap, ensuring that Pennsylvania grows and competes successfully for new businesses, new housing and new jobs.

The Business in Our Sites Fund, a $300 million statewide loan and grant pool, created by the issuance of bonds, will be available to municipalities statewide, either directly or through related redevelopment authorities, municipal authorities and economic development organizations. Emphasis will be given to communities that lack the resources necessary to invest in site preparation.