The following listing provides information on a variety of select business incentives, some of which are tax credits or exemptions while others are non-tax incentives.

Keystone Opportunity Zones

General Income/Franchise Tax Credits

A credit is allowed for tax liability attributable to business activity conducted in a Keystone Opportunity Zone, Keystone Opportunity Expansion Zone or Keystone Opportunity Improvement Zone (all referred to hereinafter as “KOZ”). Any taxpayer that owns or leases property in a KOZ from which it engages in a business is eligible. The credit does not apply to income attributable to the operation of a railroad, truck, bus, airline, pipeline, natural gas, water transportation, regulated investment, or holding company (a separate credit is available for those industries).

A taxpayer that relocates to a KOZ from another location in the state is not eligible unless it

1. Increases full-time employment by at least 20% in the first full year of operation in the Zone;
2. Makes a capital investment in the Zone property equivalent to 10% of the gross revenues of the business in the immediately preceding calendar or fiscal year; or
3. Enters into a lease for at least the duration of the KOZ designation with aggregate payments under the lease equivalent to at least 5% of the gross revenues of the business in the immediately preceding calendar or fiscal year.

The credit is equal to the amount of the entire tax liability attributable to business activity conducted in a KOZ.

To apply, interested parties must file an electronic KOZ application on the Department of Community and Economic Development (“DCED”) website by December 31 of the tax year for which the credit is sought. A copy of the KOZ approval letter from DCED and Form RCT-101 KOZ must be filed with the taxpayer's return.

KOZ designation expiration dates vary by zone. The related credits have a similar expiration date.

Income/Franchise Tax Credits for Specific Industries

A credit is allowed to railroad, truck, bus, or airline companies, pipeline or natural gas companies, or water transportation companies that create full-time jobs in a Keystone Opportunity Zone, Keystone Opportunity Expansion Zone, or Keystone Opportunity Improvement Zone (all referred to hereinafter as “KOZ”).

A taxpayer must own or lease property in a KOZ from which it conducts business. A taxpayer that relocates to a KOZ from another location in the state cannot claim the credit for any existing jobs that are transferred, discontinued, or lost as a result of the relocation. In addition, the taxpayer must:

1. Increase full-time employment by at least 20% in the first full year of operation in the Zone;
2. Make a capital investment in the zone property equivalent to 10% of the gross revenues of the business in the immediately preceding calendar or fiscal year; or
3. Enter into a lease for at least the duration of the KOZ designation with aggregate payments under the lease equivalent to at least 5% of the gross revenues of that business in the immediately preceding calendar or fiscal year.

The credit amount is determined by multiplying the monthly average number of jobs by $1,240. The amount may be reduced if the total amount of credits approved by the Department of Revenue for all taxpayers exceeds $1 million in a year. In addition, the credit cannot exceed 50% of the taxpayer’s tax liability.

To participate in the program, interested parties must submit an electronic KOZ application on the Department of Community and Economic Development (“DCED”) website. Upon approval, the taxpayer must submit an annual report of full-time jobs created through the use of REV-765, Schedule JC, to the Department of Revenue by January 15th of the year following the year for which the credit is sought. A copy of the KOZ approval letter from DCED and Form RCT-101 KOZ must be filed with a taxpayer's return.

KOZ designation expiration dates vary by zone. The related credits have a similar expiration date.

Sales and Use Tax Exemption

State and local sales and use tax exemptions apply to all sales of services or tangible personal property (other than motor vehicles) to a business, for the exclusive use by the business at its facility located within a Keystone Opportunity Zone, Keystone Opportunity Expansion Zone, or Keystone Opportunity Improvement Zone (“KOZ”). The exemption also applies to sales of building machinery and equipment to a construction contractor pursuant to a construction contract with a business located in a KOZ.

All businesses located in a KOZ are eligible. A business that relocates to a KOZ from another location in Pennsylvania must:

1. Increase full-time employment by at least 20% in the first full year of operation in the KOZ;
2. Make a capital investment in the KOZ property equivalent to at least 10% of the gross revenues of the business in the immediately preceding calendar or fiscal year; or
3. Enter into a lease for at least the duration of the KOZ designation with aggregate payments under the lease equivalent to at least 5% of the gross revenues of that business in the immediately preceding calendar or fiscal year.

To apply, interested parties must submit an electronic application through the Department of Community and Economic Development website. Approved businesses will receive an exemption certificate from the Department of Revenue. The exemption certificate is required to make tax-free purchases.

KOZ designation expiration dates vary by zone.

Property Tax Abatement

A full property tax abatement is available for deteriorated property located in a Keystone Opportunity Zone, Keystone Opportunity Expansion Zone, or Keystone Opportunity Improvement Zone (“KOZ”). All owners of deteriorated property are eligible. Political subdivisions may require property owners that lease the deteriorated property to residential tenants to invest at least 50% of the amount of property tax that would have been paid in improvements to the property.

To participate, an electronic KOZ application from the Department of Community and Economic Development website should be submitted. Local filing requirements may apply.

KOZ designation expiration dates vary by zone.

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Keystone Innovation Zone Business Activity Credit

An income tax or franchise tax credit is allowed to qualified businesses located in a Keystone Innovation Zone (“KIZ”) for increases in revenue attributable to business activity conducted in the KIZ. To be eligible, a business must have been in operation for less than eight years and be in a targeted industry sector, as defined by the local KIZ.

The credit amount is equal to 50% of the increase in gross revenues attributable to activities conducted in the KIZ between the immediately preceding taxable year and the second preceding taxable year, up to $100,000. The amount may be reduced if the total credits claimed under this program by all taxpayers exceed $25 million plus the amount of any unused credits from the previous year. The taxpayer’s credit may be carried forward for four years. Excess credits may also be sold or assigned. Transferred credits cannot offset more than 75% of buyer's tax liability and must be used in the tax year in which transfer application is submitted.

To participate, interested parties must submit Keystone Innovation Zone Company Application for Tax Credit to the Department of Community and Economic Development and a certification from the local KIZ coordinator by September 15th for credit earned in the prior year.

KIZ designation expiration dates vary by zone.

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Philadelphia Economic Development District Credit

An income tax credit is allowed for tax liability attributable to business activity conducted within a Philadelphia Economic Development District. All businesses located in the District are eligible. The credit is generally not available to businesses that relocate to a District from another location in the state. The credit does not apply to any portion of taxpayer's income that is attributable to the operation of a railroad, truck, bus or airline company, pipeline or natural gas company, water transportation company, regulated investment company, or holding company.

The credit amount is equal to the entire tax liability attributable to business conducted in the District. A business that claims the credit cannot claim any other income tax credits for business activity conducted in the District.

To apply, interested parties must submit a statement to the Department of Community and Economic Development stating that the business owns or leases real property in an Economic Development District and actively conducts a trade, profession or business on the real property.

This credit sunsets on December 31, 2018.

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Philadelphia Economic Development District Exemption

State and local sales and use tax exemptions apply to purchases of services or tangible personal property (other than motor vehicles) made by a qualified business for the exclusive use by the business at its facility located within a Philadelphia Economic Development District. The exemption also applies to purchases of building machinery and equipment to a construction contractor pursuant to a construction contract with a business located in a District.

All businesses located in a District are eligible. The exemption is generally not available to businesses that relocate to a District from another location in Pennsylvania, except under limited circumstances.

To apply, an application should be submitted to the Department of Community and Economic Development. When making purchases, an exemption certificate may be required.

This exemption sunsets on December 31, 2018.

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Philadelphia Economic Development District Abatement

A property tax abatement is available for deteriorated property located in a Philadelphia Economic Development District. The abatement applies to all property tax that is not dedicated to a school district.

To apply, one must submit an application to the Department of Community and Economic Development.

The abatement sunsets on December 31, 2018.

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Strategic Development Area Business Activity Credit

A corporate income/franchise tax credit is allowed to qualified businesses for income attributable to business activity conducted in a Strategic Development Area (“SDA”). A qualified business must own or lease property in an SDA from which it engages in a business involving energy, bioscience, manufacturing or a related activity. To participate in the program, a business must agree to create at least 500 jobs, or make at least $45 million in capital investments in the SDA property, within the first three years of operation in the SDA.

The credit amount is equal to the entire amount of tax attributable to business activity conducted in SDA.

Interested parties should submit an application to the Department of Community and Economic Development by December 31 of the year for which the credit is sought.

The credits available under this program are set to expire on December 31, 2022.

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Strategic Development Area Job Credit

A railroad, truck, bus or airline company, pipeline or natural gas company or water transportation company that is required to apportion income and is a qualified business is allowed a nonrefundable income/franchise tax credit for jobs created in a strategic development area (“SDA”).

The credit amount is determined by multiplying the monthly average of all full-time jobs created within an SDA in a taxable year by an allowance amount established for each calendar year ranging from $500 per job for 2001 to $1,250 per job for 2022. The credit amount may be reduced if total amount of credits for all taxpayers exceeds $1 million in a fiscal year. The credit cannot exceed 50% of taxpayer's income or capital stock and franchise tax liability.

To apply, a company must submit an application to the Department of Revenue by January 15 for credit earned in the prior calendar year.

The program sunsets on December 31, 2022.

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Strategic Development Area Exemption

A sales and use tax exemption applies to all purchases of services or tangible personal property (other than motor vehicles) made by a qualified business for the exclusive use of the business at its facility located in a Strategic Development Area (“SDA”). The exemption also applies to purchases of building machinery and equipment from a construction contractor pursuant to a construction contract with a qualified business located in an SDA.

Business must own or lease property in an SDA from which it engages in a business involving energy, bioscience, manufacturing, or a related activity. Within the first three full years of operation in the SDA, business must create or maintain at least 500 jobs and must make capital investments in the property of at least $45 million.

To make exempt purchases, an exemption certificate may be required.

To apply, interested business must submit an application to the Department of Community and Economic Development.

This exemption sunsets December 31, 2022.

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Strategic Development Area Property Tax Abatement

A full property tax abatement is available for deteriorated property located in a Strategic Development Area (“SDA”).

Interested parties must submit an application to the local taxing authority within 30 days after the designation of an SDA or within 30 days after the transfer of ownership of property subject to the abatement. Local filing requirements may apply.

Abatements available pursuant to the SDA program are set to expire on December 31, 2022.

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Neighborhood Assistance Program Enterprise Zone Investment Credit

A corporate income or franchise tax credit is allowed for qualified investments to rehabilitate, expand, or improve buildings or land located in Enterprise Zones. Investment must be made pursuant to a plan developed in cooperation with, and approved by, a neighborhood organization.

The credit may be up to 25% of qualified investment (or up to 35% for investments that fall within the scope of special program priorities). However, the combined total neighborhood assistance credit (see below) and neighborhood assistance program enterprise zone credit cannot exceed $250,000 ($350,000 for comprehensive service projects).

To apply, interested parties must submit a Single Application for Assistance and the NAP/EZP Addendum to the Department of Community and Economic Development. Unused credits may be carried forward for five years.

There is no sunset date for this credit.

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Neighborhood Assistance Program Credit for Community Organization Contributions

A corporate income or franchise tax credit is allowed for contributions to a neighborhood organization that provides neighborhood assistance, comprehensive service projects, job training or education for individuals, community services, or crime prevention in an impoverished area. Contributions must be made to an organization that has been approved by the Department of Community and Economic Development (“DCED”).

The credit amount is up to 55% of contribution amount (or up to 75% for comprehensive service projects with five-year commitments and up to 80% for comprehensive service projects with commitments of six or more years). Excess credits can be carried forward for five years. However, the combined total neighborhood assistance credit and neighborhood assistance program enterprise zone credit (see above) cannot exceed $250,000 ($350,000 for comprehensive service projects).

To apply, interested parties should submit an application to DCED. There is no sunset date for this credit.

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Job Creation Credit

Eligible taxpayers are allowed an income/franchise tax credit for each new full-time job created at an average hourly rate of 150% of the federal minimum wage. Taxpayer must agree to create at least 25 new jobs, or increase the number of its employees by at least 20%, within three years of the start date.

The credit is equal to $1,000 per new job created, up to the maximum amount specified in the taxpayer's commitment letter. Credits must be claimed within 5 years from date tax credit certificate is first submitted. Credits may be assigned to an affiliated entity.

To apply, a taxpayer must submit a Single Application for Assistance, along with additional required information, to the Department of Community and Economic Development. The taxpayer will receive a tax credit certificate after a commitment letter has been signed.

There is no sunset date for this credit.

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Research and Development Credit

Taxpayers who qualify for the federal research and development credit are allowed a nonrefundable income or franchise credit for increases in Pennsylvania qualified research and development expenses. Pennsylvania qualified research and development expenses are defined as qualified research expenses, as defined in Internal Revenue Code Section 41, that are incurred while conducting research and development in Pennsylvania.

The credit is equal to 10% (or 20% for qualified small businesses) of the excess of total Pennsylvania qualified research and development expenses for the taxable year over the Pennsylvania base amount. Unused credits may be carried forward for 15 years. Furthermore, unused credits may be sold or assigned. Transferred credits cannot exceed 75% of transferee's tax liability and must be claimed in the year of transfer.

To qualify for the credit, taxpayers must submit an application to the Department of Revenue by September 15th for research expenses incurred in a taxable year that ended in the prior calendar year. The application is necessary as credits available to all companies are limited per year. The Department should respond to all applications by December 15th.

This credit is not available for tax years ending after December 31, 2015.

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Film Production Credit

Film production companies may be allowed a nonrefundable income/franchise tax credit for qualified film production expenses incurred in Pennsylvania. Qualified film production expenses are all production expenses incurred in Pennsylvania, if Pennsylvania production expenses comprise at least 60% of the film's total production expenses. Qualified film production expenses cannot include more than $15 million in total compensation or payments to individuals or to entities representing individuals for services provided in the production of the film.

The amount of the credit is determined by the Department of Community and Economic Development (“DCED”) and cannot exceed 25% of qualified film production expenses incurred. Unused credits can be carried forward for three years. Taxpayers that receive a film production grant (see description elsewhere) cannot claim the credit for the same film. Credits may be sold or assigned in whole or in part. Transferees must claim purchased credits in the year of transfer and cannot use credit to offset more than 50% of tax liability.

To apply, a production companies must submit an application to DCED. If approved, taxpayer must enter into a contract with DCED. Upon execution of the contract, DCED will issue a tax credit certificate. Tax credit certificate must be filed with a taxpayer's return.

There is no sunset date for this credit.

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Educational Improvement Tax Credit

A nonrefundable corporate income or franchise tax credit is allowed for contributions to eligible scholarship organizations, pre-kindergarten scholarship organizations, and educational improvement organizations. A list of scholarship and educational improvement organizations eligible to receive contributions is available from the Department of Community and Economic Development (“DCED”). A contribution must be made within 60 days after credit is approved.

For contributions to scholarship or educational improvement organizations, the amount of the credit is 75% of the contribution, up to $300,000. If the taxpayer provides a written commitment to make the same contribution for two consecutive years, the DCED will increase the credit to 90%. For contributions to pre-kindergarten scholarship organizations, the amount of the credit is 100% of first $10,000 contribution and 90% of any additional contribution, up to $150,000.

Credits are awarded on a first-come, first-served basis, up to a total of $44,666,667 for scholarship organizations contributions, $22,333,333 for educational improvement organizations, and $5 million for pre-kindergarten scholarship organization contributions.

To participate, taxpayers must submit an application to DCED. There is no sunset date for this credit.

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Alternative Energy Production Tax Credit

A taxpayer who develops or constructs an alternative energy production project with a useful life of at least four years may apply to the Pennsylvania Department of Environmental Protection for an alternative energy production tax credit against their corporate net income, personal income, or capital stock/franchise tax liability.

Eligible taxpayers will receive an alternative energy production tax credit for the taxable year equal to 15% of the total amount of all development, equipment, and construction costs paid in creating an alternative energy production project, not to exceed $1,000,000 for each taxpayer. However, there are limits on the overall amount of credits (i.e., the sum to all taxpayers) that the Department of Environmental Protection will approve per year. When calculating the total development, equipment, and construction costs, taxpayers must deduct and grant or subsidy received for the project. Unused credits may be carried over for up to five taxable years following the first taxable year that the taxpayer was entitled to claim the credit.

Upon application and approval by the Pennsylvania Department of Environmental Protection, a taxpayer may sell or assign, in whole or in part, an alternative energy production tax credit.

NOTE: This credit is unavailable for fiscal years 2009-2010 and 2010-2011. No credits will be approved after 2016.

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Resource Enhancement and Protection Credit

A credit against income or franchise taxes is allowed for eligible costs related to resource enhancement and protection (“REAP”) projects. Qualifying projects must be certified by the State Conservation Commission.

The credit is equal to 25% to 75% of eligible costs incurred for:

• Development of a nutrient management plan, agricultural erosion and sediment conservation plan;
• An animal concentration area;
• Design and implementation of best management practices necessary to abate storm water runoff, loss of sediment, loss of nutrients and runoff of other pollutants;
• Design and implementation of best management practices necessary to restrict livestock access to streams;
• Design and implementation of agricultural best practices or the installation and use of equipment, if necessary to reduce existing sediment and nutrient pollution to surface waters; or
• Remediation of legacy sediment that is exposed and is discharging or threatens to discharge into surface waters as a result of acute stream bank erosion.

Unused credits can be carried forward for 15 years. Credits may be sold or assigned in whole or in part if no claim for allowance is filed within one year after the credit is granted. The transferee must claim the credit in the year of transfer and cannot use the credit to offset more than 75% of tax liability.

Interested parties should submit an application to the State Conservation Commission.

There is no set sunset date for this credit.

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Organ and Bone Marrow Donor Credit

A nonrefundable income/franchise tax credit is allowed for compensation paid by a taxpayer to an employee during an employee's leave of absence (up to five working days) for the purpose of organ or bone marrow donation. For businesses taxable in more than one state, the credit must be apportioned by multiplying the credit amount by a fraction, the numerator of which is the total compensation paid by the business in Pennsylvania during the tax period and the denominator of which is the total compensation paid everywhere during the tax period. The credit amount includes payments made in connection with the employee's leave, including compensation, cost of temporary replacement help, and miscellaneous expenses incurred in connection with the leave.

To claim the credit, Form REV-984, Application for Organ and Bone Marrow Donor Credit, should be submitted to the Department of Revenue by the 15th day of the 4th month following the close of the tax year. Unused credits can be carried forward for three years.

This tax credit in unavailable for tax years beginning after 2010.

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Manufacturing Exemption

Pennsylvania provides a sales and use tax exemption for the purchase of services and property that are for predominantly used or consumed directly in manufacturing or processing operations made by taxpayers engaged in the business of manufacturing or processing tangible personal property. Taxpayers may need to provide exemption certificates when making purchases that qualify for the described exemption.

This exemption has no set expiration date.

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Call Center Credit

A credit is allowed to a call center for gross receipts tax paid by a telephone company on receipts derived from the sale of interstate telecommunications services to the call center. For these purposes, a call center is a physical location in Pennsylvania where at least 150 employees are employed to initiate or answer telephone calls. It must have at least 200 telephone lines and utilize an automated call distribution system for customer telephone calls in one or more of the following activities:

• Customer service and support;
• Technical assistance;
• Help desk service;
• Providing information;
• Conducting surveys;
• Revenue collections; or
• Receiving orders or reservations.

The amount of the credit is equal to the gross receipts tax paid by a telephone company on the receipts derived from the sale of incoming and outgoing interstate telecommunications services to the call center. The credit amount may be reduced if total amount of credits for all taxpayers exceeds $30 million.

To participate, interested parties must submit an application to the Department of Revenue by February 15th for taxes paid in the prior calendar year.

There is no sunset for this credit.

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Deteriorated Property Exemption

Local taxing authorities are authorized to exempt from property tax new construction in deteriorated areas and improvements to deteriorated industrial, commercial or business property. Deteriorated property is industrial, commercial or other business property that is located in a deteriorated area, or has been the subject of an order by a government agency requiring the property to be vacated, condemned or demolished due to noncompliance with laws or regulations.

Although the exemption varies by jurisdiction, the exemption may cover the entire value of improvements for up to ten years.

To be considered for the exemption, interested parties must notify the local taxing authority when a building permit is secured or before construction begins.

There is no sunset date for this exemption.

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Pennsylvania Industrial Development Authority Loans

The Pennsylvania Department of Community and Economic Development (“DCED”) may make low-interest loans to local non-profit industrial development corporations (“IDCs”) for the development of industrial parks and multi-tenant facilities. IDCs may also use loan funds to provide loans to eligible businesses that commit to create or retain jobs. Loans may be used for land and building acquisition, construction, and renovation.

To be considered for these loans, businesses must be engaged in manufacturing, industrial activities, agri-business, computer or clerical operations centers, office buildings used as national or regional headquarters, research and development facilities, or be a Keystone Innovation Company.

Within 3 years of loan closing, business must create or retain at least one full-time job for each $35,000 borrowed. Industrial and agri-business operations must create or retain at least 25 jobs within three years and minimum total project cost of $200,000. National/regional headquarters and computer/clerical operations must create or retain at least 125 jobs within three years and total project cost of at least $1.5 million.

Loan amounts vary based on the particular scenario. Loans may equal 30% to 70% of total eligible project costs based on firm size and unemployment rate, with a maximum of $2 million. For projects in Enterprise Zones, Act 47 Industrial Communities, Brownfield Sites, and Keystone Opportunity Zones, the maximum is $2.25 million. The term of the loans are up to 15 years. Interest rates vary by location.

To apply for a loan, the Single Application for Assistance, available at www.newpa.com, to the local IDC. The IDC will submit the application to DCED.

A 1% loan commitment fee must be paid when the Pennsylvania Industrial Development Authority commitment letter is executed.

This loan program currently has no expiration date.

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Business in Our Sites Fund

The Business in Our Sites Fund provides grants and loans to fund site development activities. Funds may be used for land acquisition, environmental assessment and remediation, demolition, site preparation activities, installation of infrastructure, transportation improvements, and any other activities necessary to make a specific site ready for reuse. No repayment required until property is sold or leased.

Municipalities, municipal authorities, redevelopment authorities, industrial development agencies and private developers may apply. However, private developers are not eligible for grants. All projects must be speculative. Projects that focus on generating economic growth, redeveloping Brownfields or underutilized sites, revitalizing downtowns, and otherwise strengthening existing communities receive preferred consideration.

The maximum amount of funding for projects cannot exceed 15% of the funds available for the program. Grants cannot exceed the lesser of 50% of the total amount of the financing provided or $5 million. Interest rates on loans are 2% to 3%, depending on the county unemployment rate. The maximum term is 20 years.

To participate, an Electronic Single Application for Assistance should be submitted to the Department of Community and Economic Development. Small application fees may apply. Furthermore, construction loans are subject to a commitment fee, ranging from 0.5% to 1% of the loan amount.

There is no sunset date for this program.

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Opportunity Grant Program

The Opportunity Program provides grants to businesses that locate, expand, or maintain operations at a site in Pennsylvania and invest capital and create or retain jobs at the site. Grants may be used for:

1. Job training;
2. Construction or rehabilitation of infrastructure;
3. Acquisition of land, buildings, and right of ways;
4. Purchases or upgrades of machinery or equipment;
5. Working capital;
6. Site preparation;
7. Environmental assessments;
8. Remediation of hazardous materials; and
9. Architectural and engineering fees (up to 10% of grant).

Businesses must operate at the project site for at least five years. Private investment at the site must be in a one-to-four ratio (i.e., for every dollar of grant assistance there must be at least four dollars of private assessment).

Within three years of grant receipt, a recipient must:

1. Create or retain at least 100 full-time jobs at the site;
2. Increase employment in Pennsylvania by at least 20%;
3. Provide a substantial number of new employment opportunities within a high-growth industry; or
4. Create or preserve less than 100 jobs if the jobs are located in counties or communities suffering from economic distress.

Base pay of qualifying jobs must be at least 150% of federal minimum wage.

The maximum grant amount is $5,000 per created or retained job.

To apply, interest parties should submit a Letter of Intent to the Department of Community and Economic Development Center for Business Financing, Grants Division.

There is no set expiration date for this program.

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Industrial Sites Reuse Program

This program provides grant and low-interest loans for environmental site assessment and remediation.

The funds are available for entities involved in reuse of former industrial land that did not cause or contribute to the contamination. Eligible sites are sites where industrial activity was conducted prior to July 18, 1995.

The amount of a grant or loan for site assessment purposes is up to the lesser of:

• 75% of total cost of assessment; or
• $200,000 in a single fiscal year.

For site remediation, the amount is up to the lesser of:

• 75% of total remediation cost; or
• $1 million in a single fiscal year.

The loan term is five years for assessments and 15 years for remediation. The applicable interest rate is 2%.

To apply, interested parties should submit a Letter of Intent to the Department of Community and Economic Development (“DCED”). If the Letter of Intent is approved, the applicant must submit an Electronic Single Application for Assistance to DCED.

This program has no sunset date.

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Market Access Grant

This program provides grants to help small and medium sized businesses increase export sales. Grant funds may be used for expenses associated with new international marketing initiatives, including overseas trade mission and trade show participation.

The grants are available to Pennsylvania businesses that manufacture, assemble or distribute a product or provide an exportable service. To be considered, a business must report annual sales of no more than $40 million in the previous calendar year and must identify a specific new-to-market export initiative requiring financial support.

The amount of the grant is up to $3,000 per company. To apply, businesses should submit a Market Access Grant Application to the Regional Export Network. There is no expiration date for these grants.

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Small Business First Financing

The Small Business First Financing program provides low-interest loans to eligible small businesses for land and building acquisition and construction, machinery and equipment purchases, and working capital. To be eligible, business must have no more than 100 employees and either be located in a small business incubator or engaged in one of the following:

• Manufacturing;
• Industrial activities;
• Agriculture;
• Research and development;
• Computer-related services;
• Hotels, motels, or restaurants;
• Municipal or commercial recycling;
• Defense-related business;
• Construction; or
• Childcare.

A business must also create or preserve one full-time job within three years of project completion for each $25,000 borrowed.

The amount of financing is up to the lesser of (1) 50% of total project costs or (2) $200,000 ($100,000 for working capital loans). An applicant may not receive more than $200,000 in new financing under this program in any 12-month period. The term of the loan is up to 15 years for real estate, ten years for machinery and equipment, and three years for working capital. Interest rates vary.

To apply, interested parties should submit a Department of Community and Economic Development Single Application for Assistance to the Area Loan Organization responsible for the county in which the business is located.

There is no sunset date scheduled for this program.

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Pennsylvania Capital Access Program

Through this program, businesses may receive loan guarantees through participating banks. Loan proceeds can be used for purchases of land, buildings, machinery, equipment, and working capital. The guarantees are up to $500,000. Rate and terms are negotiated with participating bank.

To apply, contact a participating bank. A list of participating banks is available from the Department of Community and Economic Development Center for Private Financing.

There is no sunset date for this program.

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Guaranteed Free Training Grant Program

The Guaranteed Free Training Program provides grants to businesses to fund basic skills or information technology training for employees. Basic skills grants are available to manufacturing and technology businesses. Employees receiving training must be Pennsylvania residents who are employed full-time in the State and earn at least 150% of federal minimum wage excluding benefits. Employees receiving basic skills training must be front-line employees or first-level supervisors. There must be a clear connection between the training and the employee's current job responsibilities for employees receiving information technology training. Training must start within five months of the grant approval letter or by the end of the fiscal year, whichever is first.

For basic skills training, the amount of the grant is up to $450 per employee, up to $75,000 per fiscal year. For information technology training, the maximum grants is $850 per employee, up to $50,000 per fiscal year.

To participate, businesses should contact the Workforce and Economic Development Network (“WEDnetPA”). A WEDnetPA member must submit an application to the state WEDnetPA office on behalf of the business.

There is no set expiration date for this program.

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Customized Job Training Grants

Grants are available through this program to provide eligible higher level or advanced training that will provide a trainee with skills and knowledge necessary to meet a private company's or labor organization's specifications for an occupation or trade. Grants may be used for instructional costs, supplies, consumable materials, contracted services, and other relevant costs related to employee job training.

The grants go up to 75% of total job training costs. To participate, interested parties should submit a Single Application for Assistance and other required information to the Department of Community and Economic Development.

There is no set expiration date for this program.

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Pennsylvania Business Opportunities Fund

Financing and technical assistance is available to small minority- or woman-owned contractors and other small business owners who lack access to lines of credit or small business loans from traditional financial institutions through the Pennsylvania Business Opportunities Fund. Funds may be used for working capital, equipment, leasehold improvements and acquisition of owner-occupied commercial real estate. Technical assistance is provided for procurement, certification, bonding, and bid preparation.

Preference is given to small businesses requiring capital and technical assistance in order to compete for governmental and private sector contracts. Businesses must be located in the Community First Fund (“CFF”) service area of Adams, Berks, Chester, Cumberland, Dauphin, Franklin, Lancaster, Lebanon, Lehigh, Montgomery, Northampton, Perry and York Counties.

There are no preset limits on the amounts for installment loans and lines of credit available through this program. Interest rates and other terms and conditions are determined by CFF.

To participate, interested parties should submit an application to CFF.

There is no sunset date for this program.

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Building Pennsylvania Program

This program provides gap financing loans to organizations that manage capital for real estate investments to finance industrial, commercial, and multi-use real estate projects. All projects must be consistent with or identified as a priority investment in a local or regional comprehensive or economic development plan. An industrial project must produce single tenant, multi-tenant, or business incubator facilities to house activities related to advanced materials, agriculture and food processing, alternative energy, business support centers, construction, life sciences, manufacturing, national or regional headquarters, research and development, or technology. Commercial projects must house at least two businesses or provide at least 20 full-time jobs when fully occupied. Multi-use projects must combine commercial and residential space in the same building. A borrower must obtain equal amounts of private investment to funds received through the program.

Under the Building Pennsylvania program, loans range between $1 million and $30 million. The term is up to 25 years, with a balloon payment at ten years. Interest rates are the lesser of the prime rate or first mortgage rate. A 1% loan commitment fee is charged to the fund manager for each project.

Interested parties should contact the Commonwealth Financing Authority to apply for the program.

There is no sunset date for this program.

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Pennsylvania Minority Business Development Authority Loans

The program provides low-interest loans to minority-owned (at least 51%) businesses that are unable to fully finance a project using other financing sources, for purchases of land, building, machinery, equipment, and working capital. To be eligible, at least one full-time job must be created or preserved within three years of project completion for each $15,000 borrowed. The applicant cannot relocate from one county or labor market in Pennsylvania to another without at least a 25% net increase in employment.

The amount of the loan available is up to the lesser of

1. 75% of eligible project costs;
2. $250,000 ($350,000 if located in Enterprise Zones or redevelopment area);
3. $500,000 for projects involving an industrial or manufacturing enterprise, advanced technology, national or regional franchise, international trade, or business acquisitions ($750,000 if located in an Enterprise Zone or redevelopment area).

The term of the loan is up to ten years for land and buildings, seven years for machinery and equipment, and three years for working capital. The interest rate is no more than half of the prime rate but no less than 4%. A commitment fee of 1% of loan amount is required.

To apply, a Single Application for Assistance to the PA Minority Business Development Authority Office should be submitted.

There is no sunset date for this program.

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Pennsylvania Economic Development Financing Authority Taxable and Tax-Exempt Bond Programs

There is low-interest financing available through these programs via the issuance of taxable and tax-exempt bonds. Funds may be used for land, building, and equipment purchases, refinancing or refunding of existing debt, and working capital. Most businesses are eligible for taxable financing. Projects eligible for tax-exempt financing include manufacturing facilities, non-profit facilities, multi-family housing facilities, and certain exempt waste disposal, utility, or transportation facilities.

Tax-exempt manufacturing projects must create or retain one full-time permanent job for each $50,000 received within three years of receipt of financing. All other tax-exempt and taxable projects must create or retain at least ten full-time permanent jobs per financing within three years of receipt of financing.

For manufacturers, loans range from $400,000 to $10 million, up to 100% of project costs. There is no upper limit for other projects. For stand-alone projects, interest rates are determined by the bank. For composite pool projects, interest rates are typically significantly below prime. The term is up to 30 years.

Applications must be submitted on behalf of businesses by a local Industrial Development Authority or Industrial Development Corporation to the Department of Community and Economic Development. The application fee is $500, which is credited against closing costs.

This program has no set expiration date.

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Pollution Prevention Assistance Account

This assistance program provides financing to small businesses to enable them to own pollution prevention or energy efficient equipment through an outright purchase, lease/purchase agreement, or installment sales agreement. To be eligible, small business enterprises must be for-profit entities located in Pennsylvania and have 100 or fewer full-time employees worldwide at the time the application is submitted. The businesses must also agree to retain the number of people employed at the time of the loan application.

Loan amounts range up to $100,000 or 75% of the total eligible costs, whichever is less, in a 12-month period. Repayment terms are up to ten years with an annual fixed interest rate of 2%. Failure to meet any of the terms or conditions of the loan may result in an increase in the interest rate to a rate not exceeding 2% above the current prime interest rate on the outstanding principal for the remainder of the loan.

To apply, taxpayers should submit a Single Application for Assistance and the Department of Environmental Protection Determination of Eligibility Application to the Department of Community and Economic Development (“DCED”). The DCED forwards the Determination of Eligibility Application to the Department of Environmental Protection.

There is no sunset date for this program.

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Alternative and Clean Energy Program

The Alternative and Clean Energy Program provides financial assistance in the form of grant and loan funds that will be used by eligible applicants for the utilization, development and construction of alternative and clean energy projects in the Commonwealth. The Program is administered jointly by the Department of Community and Economic Development (“DCED”) and the Department of Environmental Protection, under the direction of the Commonwealth Financing Authority (“CFA”).

Loans for manufacturers of alternative and/or clean energy generation equipment or components do not exceed $35,000 for every new job created within three years after approval of the loan. Loans for any alternative energy production or clean energy project do not exceed $5 million or 50% of the total project cost, whichever is less. There is a 1% commitment fee on all approved loans.

Grants for manufacturers of alternative and/or clean energy generation equipment or components do not exceed $10,000 for every job projected to be created by the business within three years after approval of the grant. Grants for any alternative energy production or clean energy project do not exceed $2 million or 50% of the total project cost, whichever is less.

There is a matching investment requirement of at least $1 for every $1 of program funds awarded.

To participate, interested parties should submit a Single Application for Assistance to the DECD. There is a $100 non-refundable application fee due at the time of submission made payable to the CFA.

There is no set termination date for this program.

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Community Economic Development Loans

This program provides low-interest loans to businesses with 100 employees or less that are involved in the business-to-public service, mercantile, commercial, or point of sale retail sectors and are located in state-designated distressed municipalities or Keystone Opportunity Zones. Loans may be used for land, building construction or renovation, machinery and equipment and working capital.

Loan amounts are up to the lesser of $100,000 or 50% of total eligible project costs. Matching funds from other sources must equal 50% of eligible project costs. Interest rates are set at 2% and repayment terms are flexible.

To apply, a Single Application for Assistance must be submitted to the Department of Community and Economic Development. Interested parties may also apply through Area Loan Organizations or state accredited community development financial institutions.

There is no set termination date for this program.

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Infrastructure Development Program

The Infrastructure Development Program provides grants for publicly-owned infrastructure improvements and loans for privately-owned infrastructure improvements that are necessary for a business to operate at a site. Eligible companies include real estate developers and enterprises within agricultural, industrial, manufacturing, research and development, export service, and commercial industries.

Grants and loans may be up to $1.25 million. Interest rates and terms are set by the Department of Community and Economic Development (“DCED”), but no term may exceed 15 years. At least two dollars of private investment is required for every one dollar received through the program.

A business must have an application submitted on its behalf to DCED by a municipality, industrial development authority or corporation, municipal authority, redevelopment authority, or local development district.

This program currently does not have an expiration date.

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Machinery and Equipment Loan Fund

The Machinery and Equipment Loan Fund provides low-interest loans for purchases of machinery and equipment directly related to business processes. The loans are available to businesses engaged in manufacturing, industrial processes, agricultural production, direct mining operations, information technology, and biotechnology. Medical facilities are eligible if funds are used for the acquisition and installation of equipment and technology necessary to comply with U.S. Food and Drug Administration requirements regarding pharmaceutical management.

To be eligible for this program, a borrower must create or retain one full-time job at the project site within three years after the loan closes for each $25,000 borrowed. This requirement does not apply to agricultural producers or medical facilities.

Loan amounts are up to the lesser of $5 million or 50% of total project costs. Loan terms are up to ten years. As of January 2010, interest rates on program loans are set at 4.75%. A loan commitment fee of 1% of the loan is required, but the fee will not to exceed $10,000.

To apply for a loan through this program, interested parties must submit a Single Application for Assistance to the Department of Community and Economic Development.

There is no termination date for this program.

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Film Production Grant Program

The Film Production Grant Program provides grants for a portion of qualified film production expenses incurred making a motion picture in Pennsylvania. Qualified production expenses include wages and salaries of individuals employed in the production of the film (excluding salaries of individuals who earn $1 million or more), and costs of construction, operations, editing, photography, sound synchronization, lighting, wardrobe, accessories, rental facilities and equipment.

Grants are available up to 20% of qualified film production expenses. The total amount of grants awarded through this program in any fiscal year cannot exceed $10 million. Taxpayers that receive a film production grant cannot claim the film production income tax credit (described elsewhere) for the same film.

To participate, interested parties must submit an application to the Department of Community and Economic Development at any time prior to 60 days after completion of production.

There is no set expiration date for this program.

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New Pennsylvania Venture Capital Investment Program

This program provides loans to venture capital investment firms that invest in Pennsylvania-related companies. To be eligible, the venture capital firm must invest $3.00 in Pennsylvania companies for every $1.00 borrowed through the program. 50% of available loan funds are allocated to venture capital partnerships with primary offices staffed with at least one senior-level partner in counties outside the Philadelphia Metropolitan Statistical Area that have a population of no more than one million. In addition, 50% of available loan funds are allocated to investments in businesses in counties outside the Philadelphia Metropolitan Statistical Area that have a population of no more than 1 million. Priority is given to projects that demonstrate significant job creation and business and citizen impact.

Loans made under this program may be up to 20% of the total investment in the venture capital partnership. Recipients of loans must file quarterly reports with the Department of Community and Economic Development (“DCED”).

To apply, the investment firm should submit a Single Application for Assistance along with any supplemental information to the DCED.

There is no set termination date for this program.

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New Pennsylvania Venture Guarantee Program

This New Pennsylvania Program provides guarantees to venture capital partnerships for investments in early and expansion-stage Pennsylvania companies. Eligible venture capital partnerships must have an office in Pennsylvania with at least one senior-level partner and must commit to invest at least $15 million in Pennsylvania companies. The managing partner must have managed at least one venture capital partnership with performance ratings in the top quartile nationwide when compared with other venture capital partnerships with similar investments made over a similar period of time.

Guarantees may be made of up to 50% of the investment in Pennsylvania companies or $37.5 million, whichever is lesser. Applications will be accepted until aggregate of approved guarantees equals $250 million. Recipients of guarantees must file quarterly reports with the Department of Community and Economic Development (“DCED”).

Interested venture capital partnerships must submit a Single Application for Assistance to the DCED.

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First Industries Agriculture Program

The First Industries Agriculture Program provides loans and loan guarantees to businesses engaged in production agriculture, agribusiness or agriculture-related activities for costs associated with agriculture-related projects. Grants are available for pre-development activities and feasibility studies. To be eligible, a project must satisfy certain criteria relating to financing and economic impact.

Grants of up to $250,000 per project are available. Loans of up to the lesser of $500,000 or 50% of total project costs are also available through the program. Such loans have terms of up to ten years. Loan guarantees of up to the lesser of 50% of outstanding principal or $2.5 million may also be obtained through the program.

Interested parties must submit a Single Application for Assistance to the Department of Community and Economic Development.

There is no sunset date for this program.

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Ben Franklin Technology Partners — Challenge Grant

The BFTP mission is to invest in technology, innovation, and strategic partnerships that foster a favorable business environment for high-growth companies. Supported activities may include:

• Applied research and development leading to near term commercialization of new or improved products or processes by Pennsylvania companies;
• Transfer of new process and/or product technology to Pennsylvania companies;
• Innovative integration and application of state-of-the-market technologies and business practices that lead to novel competitive advantages for Pennsylvania companies in their market niches; and
• Other business activities necessary to commercialize such advances.

Assistance in the form of seed investments is available to businesses with less than 250 employees, with priority given to businesses with less than 50 employees. Larger businesses may qualify in certain instances.

Grant amounts provided through the program vary. Matching private sector funds are required. Interested parties must contact the Department of Community and Economic Development.

There is no sunset date for this program.

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Ben Franklin Technology Development Authority - Venture Investment Program

This program provides financing to technology-oriented businesses or venture capital firms that invest in technology-oriented businesses. Financing come in the form of loan or equity investments and is determined based on the needs and circumstances of the venture to be financed.

Financing provided may be up to 20% of total investment in the project. Semi-annual reports are required.

Interested parties must submit a Single Application for Assistance and other required information, including a business plan, to the Department of Community and Economic Development.

The program has no set expiration date.

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BioAdvance Biotechnology Greenhouse of Southeastern Pennsylvania

BioAdvance provides pre-seed and seed stage capital in the form of convertible debt to businesses engaged in the general field of human health, with an emphasis on therapeutics, tools or platform technologies, devices, and diagnostics. Capital provided must be used for research and development. Business assistance and critical resources are also provided through the program.

Applicants must be located in southeastern Pennsylvania and all funded work must be conducted in southeastern Pennsylvania (i.e., within Philadelphia, Montgomery, Delaware, Bucks, and Chester counties).

Up to $50,000 in pilot investments is available to qualifying businesses. Companies may also obtain up to $500,000 for initial seed investments and up to $1.25 million in the seed-stage over the life of the investment.

Interested parties should submit an application to BioAdvance. Visit their website at www.bioadvance.com.

There is no current expiration date set for this program.

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Pittsburgh Life Sciences Greenhouse

The Pittsburgh Life Sciences Greenhouse provides investments (in the form of convertible promissory notes) to early stage life sciences businesses. The Greenhouse’s also provides assistance for start-up and established life sciences businesses.

To participate, a business must have raised less than $2.5 million in investments, outside of federal or state grants, and must be located in southwestern Pennsylvania (i.e., Allegheny, Armstrong, Beaver, Bedford, Butler, Cambria, Clarion, Crawford, Erie, Fayette, Forest, Greene, Indiana, Lawrence, Mercer, Somerset, Venango, Warren, Washington, and Westmoreland counties). Funding for personnel and consulting costs must be expended within southwestern Pennsylvania. In addition, a one-to-one match in cash or in kind (personnel time, equipment use, materials, software or reduced overhead) is required.

Typical investments range from $100,000 to $150,000.

To apply, businesses should submit a proposal to Pittsburgh Life Sciences Greenhouse. Applicants are strongly encouraged to contact PLSG to discuss eligibility and other guidelines prior to submitting a proposal. For more information, see www.plsg.com.

There is no set termination date for this program.

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Life Sciences Greenhouse of Central Pennsylvania

This Greenhouse group provides convertible debt or equity financing and business support services for seed stage or established life sciences companies that have significant potential for commercial growth. To participate, businesses must make staffing commitments in Central Pennsylvania, must demonstrate a long-term commitment to Pennsylvania and must have a high likelihood of raising matching funds and/or follow-on funding.

Financing of up to $1 million is available through this program. To participate, companies should submit an application to Life Sciences Greenhouse of Central Pennsylvania. For more information, visit www.lsgpa.com.

There is no set cancellation date for this program.

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Technology Collaborative Program

The Technology Collaborative Program provides:

• Funding for research, development, and technology commercialization projects;
• Workforce training courses;
• Business incubation; and
• Support services.

Funding amounts vary. Contact the Technology Collaborative through their website at www.techcollaborative.org.

There is no set termination date for this program.

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First Industries Tourism Program

The First Industries Tourism Program provides loans and loan guarantees to businesses that undertake projects to promote tourism in Pennsylvania for costs associated with tourism-related projects. Grants are available through the program for predevelopment activities and feasibility studies.

To be eligible, a project must satisfy certain criteria relating to financing and economic impact. The borrower must also create or retain one full-time job at the project site within three years after the loan closing for each $25,000 borrowed.

Grants of up to $250,000 per project are available through the program. Loans of up to the lesser of $500,000 or 50% of total project costs are also available. Loan terms are up to ten years. Loan guarantees of up to the lesser of 50% of outstanding principal or $2.5 million may also be provided.

To participate, interested parties should submit a Single Application for Assistance to the Department of Community and Economic Development.

There is no termination date for this program.

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Rail Freight Assistance Program

This program provides grants to railroads and rail freight users to repair rail lines or spurs. Grants of up to the lesser of 75% of project costs or $750,000 are available for maintenance projects. In addition, grants of up to the lesser of 50% of project costs or $100,000 are available for the construction projects. Certain matching requirements apply.

Applications must be submitted to the Pennsylvania Department of Transportation Bureau of Rail Freight.

There is no set termination date for this program.

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Pennsylvania Tech Business Incubators

This program provides management guidance, technical assistance and consulting for young, growing companies. Incubators also provide access to rental space and flexible leases, shared basic business services and equipment, technology support services and assistance in obtaining financing.

To participate, contact the Department of Community and Economic Development.

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Pennsylvania Angel Network

The Angel Network connects start-up companies seeking funds with investors. To participate, interested parties should submit a presentation to the Pennsylvania Angel Network. Visit their website for more:
www.paangelnetwork.com.

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Science Center Incubator

The University Science Center provides flexible and affordable office space and fully-equipped biotech wet labs in Philadelphia. The incubation space also provides entrepreneurs and established life science/technology companies with a variety of office amenities.

To take advantage of these opportunities, a business must be willing to relocate to the Science Center and have 25 or less employees. Businesses located at the Center are also eligible for Keystone Innovation Zone and Keystone Opportunity Zone benefits.

For more information, visit www.sciencecenter.org.

There is no termination date for this program.

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