FOR IMMEDIATE
RELEASE
February 10, 2004
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General Assembly Approves Sweeping Keystone
Innovation Zone bill
Harrisburg – Legislation providing the most comprehensive revision to
Pennsylvania's economic development programs in recent history was
approved by the Legislature today and sent to the governor for enactment
into law, said state Sen. Ted Erickson (R-26) who co-sponsored the
measure.
Senate Bill 778 creates Keystone Innovation Zones (KIZ) to spur
economic development and job growth, Erickson said. The Senate concurred
on House amendments to the measure, which addresses a number of state
economic development programs.
Erickson said KIZs will provide such incentives as priority
consideration for Pennsylvania Industrial Development Authority (PIDA)
loans, grants for workforce development, and research and development
tax credits. KIZ designation would also provide for support from the
state Department of Community and Economic Development and the Ben
Franklin Technology Development Authority.
The initiative will also spur economic development and job growth
around the Commonwealth's colleges and universities, Erickson said.
"It takes capital combined with facilities and people to create
good-paying jobs for the future, and KIZs will help provide those
elements," said Erickson.
KIZ-qualified companies are: less than eight years old; have at least
three employees in the zone; and fall within a targeted industry segment
chosen by the KIZ Partnership in its strategic plan.
The legislation revamps the Opportunity Grants Program, the Small
Business First Program, and the Machinery and Equipment Loan Program. It
is the first major revamping of these programs since 1996.
Highlights include the following provisions:
Machinery and Equipment Loan Fund (MELF)
- Adds hospitals, information technology and biotechnology
businesses as eligible applicants.
- Permits loans for computer hardware and software.
- Hospital loans limited to machinery and equipment used in the
prescribing and dispensing of medication.
- Increases maximum loan amount to $5 million (from $500,000).
Small Business First
- • Increases terms of loans from 10 years to 15 years for land and
building loans, and from 7 years to 10 years for machinery and
equipment.
- • Adds purchases of land, building, machinery and equipment in the
12 months prior to applying as qualifying matches.
Opportunity Grants
- • Permits grants for production agriculture.
- • Imposes penalties for noncompliance.
"This legislation represents an aggressive, comprehensive approach to
economic development that provides communities with important economic
development tools and utilizes the vast resources of our universities,"
said Erickson.
CONTACT: Charles McDonald (717) 787-1350
