After the turn of the millennium, that rule was changed. Over time, the rules for KOZs were eased.įor example, the original law required a company located in a KOZ to either boost employment by 20% or invest at least 10% of its previous year revenue to receive the tax abatements. In Philadelphia, that’s City Council and the Board of Education. (In Philadelphia, however, they do have to pay the wage tax for employees.)Įach designation area must be approved by the state - and by local entities that stand to lose tax revenue. The property owners get a real estate tax abatement, and businesses located on KOZs don’t have to pay most state and local taxes for the period of designation, which is usually between 10 and 15 years and can be renewed. The initial legislation created 12 areas, before subsequent legislation permitted many more. Inspired by a similar program in Michigan, the Pennsylvania Legislature created the Keystone Opportunity Zone program in 1998, under Gov. Their use as a general-purpose economic development incentive has led to battles over designations that seemed to favor one politically connected developer over another - and some have criticized it for threatening to sap the school district of badly needed tax revenues. There are currently 287 zones in Philadelphia, according to the city Department of Commerce. State officials have described it as “one of the nation’s boldest and most innovative economic and community development programs.” Supporters say it’s an essential tool for clearing blight, reinvigorating dormant land that might otherwise be too expensive to redevelop, and inducing employers to come to or remain in Pennsylvania rather than being enticed to other states with their own generous incentive programs. What does the program do? In short, KOZs eliminate almost all state and local taxes for the owners of the designated parcels and businesses in the zones. The Navy Yard in South Philly, Schuylkill Yards in University City, and the massive new Bellwether District at the former PES refinery are all part of the program, which was created in the late 1990s to spur redevelopment of post-industrial buildings and properties around Pennsylvania. It’s closer to 20% right now as we’ve been spending all we can on new tools and materials for our new larger products and our Christmas stock.Some of the biggest and best-known development projects in Philadelphia are powered in part by a state tax break called the Keystone Opportunity Zone. Net profit has run anywhere between 20-50% throughout the life of the business and varies month to month. We’ve learned what to focus on during which months, as revenue can range anywhere from $2000 during slow months to $10,000 during high months. Moving twice in two years has definitely caused organizational, financial and opportunity hiccups, but the business has grown steadily regardless so we’re very excited about where 2020 will take us. Each piece is made to order with 20+ color options, meaning it will be the perfect fit for each customer's space. Our home-based woodshop is nestled in the hills of PEI’s countryside, and we specialize in decorative shelving and home decor with a focus on minimalist design and simplicity. My name is Sasha Weekes and I’m the 25 years old owner of Timber Grove Studios.
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