ENTERPRISE ZONES

General Information

Designated state enterprise zones use a unique combination and concentration of the Commonwealth's business incentives to increase the number and quality of job opportunities within the Zone.  These incentives include:

• Business development and infrastructure assistance in the form of grants or below-market rate loans.  Loan repayments are recycled into a Revolving Loan Fund to assist other such businesses.

• Lowest statewide prevailing interest rates on other business development loan programs such as the Pennsylvania Industrial Development Authority (PIDA), Machinery and Equipment Loan Fund (MELF), and Small Business First loans.

• Assistance for clean up of contaminated sites under Act II.

• Advantage in bidding on state government contracts.

• Availability of a state liquor license.

• State tax credits for various business development projects. Eligible projects may include improvements to real property using new construction and/or rehabilitation of existing buildings.

Norristown Enterprise Zone

The Enterprise Zone Program places a priority on assistance to businesses involved in technology, wholesale, distribution, manufacturing, and industrial export services.  Export is defined as a business which has a market area approximately statewide or larger.  Emphasis is also put on firms that provide higher quality employment than typical minimum-wage jobs.

Corporations may apply for a 20% tax credit on their state Corporate Net Income Tax for the value of investments to rehabilitate or improve buildings or land located in the Norristown Enterprise Zone.  Each year a total of $4 million in tax credits is available for approved projects, not exceeding $250,000 per project per year.  Tax credits can be carried forward for five years.

Any business or industry which is subject to one or more of the following Pennsylvania corporate taxes is eligible to apply:

• Corporate Net Income Tax

• Shares Tax

• Mutual Thrift Institutions Tax

• Gross Receipts Tax

• Capital Stock/Franchise Tax

Conshohocken  Enterprise Zone

The Enterprise Zone Program in the Borough of Conshohocken has "sunset".  However, a residual of the program is the Enterprise Zone Revolving Loan Fund with total assets in excess of $2.7 million.  This loan fund finances relocation and expansion activities for businesses moving to or located within the Zone.  The interest rate is below market.  Terms of the loan vary to reflect the risk of a project.  The Greater Conshohocken Economic Development reviews all loan applications and makes recommendations to the Redevelopment Authority for approval.