Philly Tech Companies Benefitted Big From State Tax Credits in 2017
Here’s how much they were awarded.
2017 was another big year for local companies benefitting from Keystone Innovation Zone tax credits. And for the second year in a row, companies in Philadelphia’s University City zone received the highest number of tax credit awards out of all of Pennsylvania’s 28 zones.
A total of 36 companies in University City, Center City and Old City received around $2.4 million in awards last year from the Pennsylvania Department of Community and Economic Development. The early stage companies include Biomeme, VeryApt, Chatterblast Media, Setvi, Sidecar, Guru, Curalate, and Cloudmine. The full list of companies and the value of their credits are available here.
Arcweb Technologies also took advantage of the program last year. CEO Chris Cera said the company plans to use all of the credits to hire more employees.
Eric King, co-founder of Grand Round Table, headquartered at the Science Center’s ic@3410 says the program is “a great way to spur innovation across Pennsylvania cities and towns.” His company expects to use the 2017 credit to grow its footprint and follow through on its mission to help primary care practices keep high-risk patients out of the hospital.
Four companies in Philadelphia’s Navy Yard zone, including Luxtech and Industrial Metals Manufacturing, also received credits.
Since 2006, 79 companies have been awarded close to $13 million in KIZ tax credits. Early stage life science and tech companies can get up to $100,000 in tradable credits every year. A total of $15 million in credits are available statewide. The idea is that companies will use the cash to hire employees, purchase equipment or expand their office space.
In 2016, the University City tax zone expanded to include parts of Old City. The University City Keystone Innovation Zone now stretches from 42nd Street in University City, through Center City and down to Front Street in Old City.