Eleven Bethlehem Startups Receive $442,000 in KIZ Tax Credits
By Colin McEvoy on January 4, 2018
Just weeks after two Bethlehem startup companies received $400,000 in state funding, the state of Pennsylvania has announced another 11 startups located in the city will be receiving $442,158 in Keystone Innovation Zone (KIZ) tax credits.
All 11 of these companies are located within the Southside Bethlehem Keystone Innovation Zone, an area within the city that allows qualified startup companies to qualify for multiple financial and advisory support benefits.
“Bethlehem startup companies are in a better position today because of the KIZ Tax Credit awards,” said Bethlehem Mayor Bob Donchez. “We are ecstatic to hear that these companies will be investing these funds in their employees, equipment, products, and facilities that will allow for continued growth and innovation.”
The companies that will be receiving the $442,158 in KIZ tax credits include:
- Bonn Place Brewing, Inc. ($46,199)
- CryoConcepts, LP ($79,905)
- DynAccess Ltd. ($59,268)
- Hatch Lab LLC ($28,552)
- InnovForm Therapeutics LLC ($6,762)
- Map Decisions LLC ($4,664)
- MindMe, Inc. ($26,368)
- NEATCap Medical LLC ($22,693)
- NextShift ($79,905)
- SolTech Solutions LLC ($7,937)
- ViiHealth, Inc. ($79,905)
DynAccess designs and manufactures monoskis, a type of ski with a seat and specially-developed suspension for users with physical disabilities. Channy Tokura, founder of DynAccess, said tax credits like these that the company has previously received is helping the company travel to South Korea this year for the 2018 Winter Paralympics.
“Tax credits like these have helped put us in the position we’re in to support our athletes in South Korea,” Tokura said. “This money will also go toward research in developing new products and supporting our customers. We’re very thankful for that.”
The tax credits for these 11 companies are part of $15 million in tax credits Gov. Tom Wolf announced last week for 273 early-stage companies, which he said represents his administration’s commitment to Pennsylvania’s technology sector.
“Fostering an environment that allows technology and innovation to flourish in our private sector is one of this administration’s top business priorities,” Wolf said. “By providing these tax credits, we’re helping to reduce the burden placed on companies as they go through the early stages of growth, thereby helping new ideas take root while pushing both our economy and the thriving tech sector forward.”
These KIZ tax credits are unrelated to the $400,000 in Enterprise Zone Tax Credits awarded to Vastex International, Inc. and Columbia Associates LLC last month, though both are administered by the Pennsylvania Department of Community & Economic Development.
The Southside Bethlehem KIZ helps to foster innovation and create entrepreneurial opportunities by aligning the combined resources of educational institutions, governmental agencies, and the private sector, according to the Bethlehem Economic Development Corporation (BEDCO), which administers the zone.
During its annual update event on Nov. 21, it was announced that since the the Southside Bethlehem KIZ was formed in 2004, it has resulted in 444 new jobs, $7.8 million in investment, 141 products new products developed, and nearly $1.2 million in technology transfer grants awarded.
The KIZ program provides tax credits for companies that have been in operation for less than eight years, whose gross revenues have increased over the previous year, are located in a KIZ, and are operating within a targeted industry sector such as information technology or advanced manufacturing/diversified materials.
Financial resources provided by the KIZ provides include technology transfer grants up to $15,000 per project, student internship grants of up to $3,750 per intern, and KIZ tax credits up to $100,000 annually, and Technical Entrepreneurship Capstone Program Grants up to $5,000.
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