Sweeping Keystone Innovation Zone Bill Signed Into
Law
Harrisburg – Legislation providing the most comprehensive revision
to Pennsylvania's economic development programs in nearly a decade was
approved by the General Assembly and signed into law by the Governor
this week, said state Senator Bob Robbins (R-50), who co-sponsored the
measure.
Senate Bill 778 provides for the creation of Keystone Innovation
Zones (KIZ) to spur economic development and job growth around the
Commonwealth's colleges and universities, Robbins said. KIZs will
provide such incentives as priority consideration for Pennsylvania
Industrial Development Authority (PIDA) loans, grants for workforce
development, and research and development tax credits to businesses
located within the zones. KIZ designation would also provide for
support from the state Department of Community and Economic
Development and the Ben Franklin Technology Development Authority.
"It takes capital combined with facilities and people to create
good-paying jobs for the future, and KIZs will help provide for those
elements," said Robbins. KIZ-qualified companies are: less than eight
years old; have at least three employees in the zone; and fall within
a targeted industry segment chosen by the KIZ Partnership in its
strategic plan.
This legislation also revamps the Commonwealth's Opportunity Grants
Program, the Small Business First Program, and the Machinery and
Equipment Loan Program. It is the first major revamping of these
programs since 1996. It would amend the Machinery and Equipment Loan
Fund (MELF) by adding hospitals, information technology and
biotechnology businesses as eligible applicants; permitting loans for
computer hardware and software; limiting hospital loans to machinery
and equipment used in the prescribing and dispensing of medication;
and increasing the maximum loan amount to $5 million (from $500,000).
The Small Business First Program would be amended by increasing the
terms of loans from 10 years to 15 years for land and building loans,
and from 7 years to 10 years for machinery and equipment and adding
purchases of land, buildings, machinery and equipment in the 12 months
prior to applying as qualifying matches. The Opportunity Grants
Program would be amended by permitting grants for production
agriculture.
CONTACT: Nate Silcox (717) 787-1322
