Central Pennsylvania is taking strides to become more accommodating to new businesses and just one example is the Keystone Opportunity Zone (KOZ). Taxes can stifle many new business ventures, but KOZ is providing a once-in-a-lifetime opportunity to develop land with greatly reduced state and local taxes and has been called “the number one economic development strategy in the nation.”
Designed to boost development and purchases in underdeveloped areas, KOZ’s reduce or eliminate specific taxes to investors. Those who purchase or lease within the Keystone Opportunity Zones are eligible to participate in these beneficial programs simply with the completion of an application. This program encourages both expansion and economic growth within the Central Pennsylvania region.
The first KOZ was developed in 1999 by Pennsylvania Governor Tom Ridge. In 2001, another round of Keystone Opportunity Zones was approved, extending the areas available for benefits. A third round was authorized in 2003. The program has been quite successful in the Central Pennsylvania area, providing jobs and increasing real estate investments.
In order to qualify for the tax benefits, the property must be purchased within the designated zones. The zones chosen by the city are often vacant industrial land and vacant outdated industrial buildings throughout the region. No existing businesses have been chosen by the Commonwealth for participation in the KOZ program.
An example of a local property in the Central Pennsylvania area is 815 Market Street in Harrisburg, Pennsylvania. Weighing in at 250,000 square feet and seated on 11 acres, this particular building was previously owned by the U.S. Postal Service where it was used as a sorting facility. The property is considered to be ideal for a manufacturing or distribution operation, given the proximity to major markets in the Northeast region.
Tax breaks are an invaluable resource for both new and established businesses. In addition to the tax reductions or eliminations, KOZ’s are breathing new life into under-utilized areas. Keystone Opportunity Zones are emerging as a breakthrough idea, and being met with great success and further expansion. New properties and subzones are also being added as the success of the program continues.
Don’t miss out on this opportunity! Keystone Opportunity Zone properties are another one of the reasons I am proud to make central Pennsylvania my home base. For questions regarding office space in Central Pennsylvania, please contact me by email: email@example.com or by phone at 717-657-5833. As a practiced commercial real estate broker, I can help you find the property that suits your needs.