Keystone Opportunity Zone
Encyclopedia
Keystone Opportunity Zones (KOZ) are specific commercial or industrial areas with greatly reduced or no tax
burden for property owners, residents and businesses throughout the Commonwealth of Pennsylvania. Pennsylvania is also known as the Keystone State, hence the name. The first KOZ's were established in 1999 by the Pennsylvania State Legislature and signed into law by Tom Ridge
, who was then the Governor of Pennsylvania. As of 2008, KOZ's are still being supported by continuing acts of the state legislature and the former governor Ed Rendell
. The zones are located throughout Pennsylvania in 12 separate regions: Northwest, Southwest, North Central, Southern Alleghenies, Northern Tier, Central, South Central, Lackawanna/Luzerne, Schuylkill/Carbon, Lehigh Valley, Southeast, and Philadelphia. Many of the sites are located in pre-existing airports and industrial parks.
Pennsylvania is part of the Rust Belt, a strip of states across the northeastern and midwestern parts of the United States
. These states were formerly industrial powers, but many of their industries have since left, leaving behind vast expanses of factories, mills, and office buildings that have begun to decay or rust. Some of these areas in Pennsylvania have been named Keystone Opportunity Zones with the idea of re-establishing and creating industrial and commercial centers throughout the state. Other KOZ's include newly zoned industrial park
s and new and old corporate office spaces. Examples of Pennsylvania KOZ's include the Mid-State Regional Airport
in Centre County
, and the Cira Centre
, a 28-story office building in Philadelphia.
Keystone Opportunity Zones are designated by local communities and approved by the state. Businesses or companies that are new to Pennsylvania must locate within one of the designated zones to receive tax benefits. Businesses and companies that are already well established in Pennsylvania may become obtain KOZ benefits by increasing full-time employment within one year after receiving KOZ status or by making capital investments equal to 10 percent of the previous years gross revenue.
Olympus Corporation
, a Japan
ese company specializing in optics
and imaging
, opened its American headquarters
in a Keystone Opportunity Zone in Upper Saucon Township
, Lehigh County
in 2006. The optics and imaging company was drawn to Pennsylvania by the tax benefits available in a KOZ. Other companies to recently move to or open new offices in Pennsylvania include Duke Energy
, International Paper
, DuPont
, and Caremark Rx
.
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
burden for property owners, residents and businesses throughout the Commonwealth of Pennsylvania. Pennsylvania is also known as the Keystone State, hence the name. The first KOZ's were established in 1999 by the Pennsylvania State Legislature and signed into law by Tom Ridge
Tom Ridge
Thomas Joseph "Tom" Ridge is an American politician who served as a member of the United States House of Representatives , the 43rd Governor of Pennsylvania , Assistant to the President for Homeland Security , and the first United States Secretary of Homeland Security...
, who was then the Governor of Pennsylvania. As of 2008, KOZ's are still being supported by continuing acts of the state legislature and the former governor Ed Rendell
Ed Rendell
Edward Gene "Ed" Rendell is an American politician who served as the 45th Governor of Pennsylvania. Rendell, a member of the Democratic Party, was elected Governor of Pennsylvania in 2002, and his term of office began January 21, 2003...
. The zones are located throughout Pennsylvania in 12 separate regions: Northwest, Southwest, North Central, Southern Alleghenies, Northern Tier, Central, South Central, Lackawanna/Luzerne, Schuylkill/Carbon, Lehigh Valley, Southeast, and Philadelphia. Many of the sites are located in pre-existing airports and industrial parks.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. These states were formerly industrial powers, but many of their industries have since left, leaving behind vast expanses of factories, mills, and office buildings that have begun to decay or rust. Some of these areas in Pennsylvania have been named Keystone Opportunity Zones with the idea of re-establishing and creating industrial and commercial centers throughout the state. Other KOZ's include newly zoned industrial park
Industrial park
An industrial park is an area zoned and planned for the purpose of industrial development...
s and new and old corporate office spaces. Examples of Pennsylvania KOZ's include the Mid-State Regional Airport
Mid-State Regional Airport
Mid-State Regional Airport , also known as Mid-State Airport, is a small airport in Rush Township, Centre County in Pennsylvania in the United States. It is located between Black Moshannon State Park to the east and Moshannon State Forest in all other directions.The airport is east of the central...
in Centre County
Centre County, Pennsylvania
Centre County is a county located in the U.S. state of Pennsylvania. It is part of the State College, Pennsylvania Metropolitan Statistical Area. As of 2010, the population was 153,990....
, and the Cira Centre
Cira Centre
The Cira Centre is a 29-story, office high-rise in the University City district of West Philadelphia, Pennsylvania, United States. Developed by Brandywine Realty Trust and designed by César Pelli, the Cira Centre sits across the street from Amtrak's 30th Street Station...
, a 28-story office building in Philadelphia.
Keystone Opportunity Zones are designated by local communities and approved by the state. Businesses or companies that are new to Pennsylvania must locate within one of the designated zones to receive tax benefits. Businesses and companies that are already well established in Pennsylvania may become obtain KOZ benefits by increasing full-time employment within one year after receiving KOZ status or by making capital investments equal to 10 percent of the previous years gross revenue.
Olympus Corporation
Olympus Corporation
is a Japan-based manufacturer of optics and reprography products. Olympus was established on 12 October 1919, initially specializing in microscope and thermometer businesses. Its global headquarters are in Shinjuku, Tokyo, Japan, while its USA operations are based in Center Valley, Pennsylvania,...
, a Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
ese company specializing in optics
Optics
Optics is the branch of physics which involves the behavior and properties of light, including its interactions with matter and the construction of instruments that use or detect it. Optics usually describes the behavior of visible, ultraviolet, and infrared light...
and imaging
Imaging
Imaging is the representation or reproduction of an object's outward form; especially a visual representation .- Imaging methodologies and technologies :...
, opened its American headquarters
Headquarters
Headquarters denotes the location where most, if not all, of the important functions of an organization are coordinated. In the United States, the corporate headquarters represents the entity at the center or the top of a corporation taking full responsibility managing all business activities...
in a Keystone Opportunity Zone in Upper Saucon Township
Upper Saucon Township, Pennsylvania
Upper Saucon Township is a township in Lehigh County, Pennsylvania, in the United States. It is a suburb of Allentown, Pennsylvania, in the Lehigh Valley region of the state, and geographically in the Saucon Valley....
, Lehigh County
Lehigh County, Pennsylvania
-Climate:Most of the county's climate is considered to fall in the humid continental climate zone. Summers are typically hot and muggy, fall and spring are generally mild, and winter is cold. Precipitation is almost uniformly distributed throughout the year....
in 2006. The optics and imaging company was drawn to Pennsylvania by the tax benefits available in a KOZ. Other companies to recently move to or open new offices in Pennsylvania include Duke Energy
Duke Energy
Duke Energy , headquartered in Charlotte, North Carolina, is an energy company with assets in the United States, Canada and Latin America.-Overview:...
, International Paper
International Paper
International Paper Company is an American pulp and paper company, the largest such company in the world. It has approximately 59,500 employees, and it is headquartered in Memphis, Tennessee.-History:...
, DuPont
DuPont
E. I. du Pont de Nemours and Company , commonly referred to as DuPont, is an American chemical company that was founded in July 1802 as a gunpowder mill by Eleuthère Irénée du Pont. DuPont was the world's third largest chemical company based on market capitalization and ninth based on revenue in 2009...
, and Caremark Rx
Caremark Rx
Caremark Pharmacy Services is the prescription benefit management subsidiary of CVS Caremark Corporation, headquartered in Woonsocket, Rhode Island and Nashville, Tennessee.-Company history:...
.