Quick Reference KOZ Application Guide

Quick Reference KOZ Application Guide

To receive KOZ/KOEZ tax benefits, a taxpayer must complete and submit an application to the PA Department of Community and Economic Development by Dec. 31 of each calendar year for which benefits are sought. Taxpayers must complete applications accurately and fully, as incomplete or false applications may result in benefit forfeiture.
 
Contact Information
 
The KOZ program is administered by the Department of Community and Economic Development.  For more information and to apply for tax benefits, visit the DCED Web site at www.newpa.com or call the DCED Customer Service Center at 1-800-379-7448.  
 

Questions about local taxes and tax benefits should be directed to your local KOZ coordinator

 
State tax questions should be directed to the Department of Revenue’s KOZ Coordinator at 717-772-3896 or ra-btftrevkoz@pa.gov. 
 
Question 1
This question customizes your application to qualify a business, property owner and/or resident. Please check all descriptions that apply.
 
Question 2
The name provided on the application will be used for all correspondence from the department. Please use the full legal name of the business or applicant.
 
Questions 3, 4, 5 and 6 
Failure to list the correct KOZ address and corresponding information will result in disqualification.
 
Question 7
Correspondence from the department, which may include confidential information, will be sent to this address. Please use your permanent address to ensure timely delivery, and be sure the contact is privileged to receive such information. A fax number and e-mail address, although not required, will expedite request processing.
 
Question 8
Indicate how you report to the Internal Revenue Service.
 
C Corp – A U.S. corporation that, for federal income tax purposes, is taxed under 26 U.S.C. § 11 and Subchapter C (26 U.S.C. § 301 et seq.) of Chapter 1 of the Internal Revenue Code.
 
Sole Proprietorship – A business entity that legally has no separate existence from its owner, therefore the person who organized the business pays personal income taxes on the profits made.
 
Trust/Estate – A legal relationship in which one person or qualified trust company (trustee) holds property for the benefit of another (beneficiary).
 
Nonprofit – A business organized for specific tax-exempt purposes.
 
Property Owner – A holder or proprietor of land.
 
S Corp – A special type of corporation, of particular interest to sole proprietorships or partnerships, for which earnings may flow through to owners who then pay personal income tax on earnings. An eligible domestic corporation may avoid double taxation by electing to be treated as an S corporation. Generally, an S corporation is exempt from federal income tax, except for tax on certain capital gains and passive income. On tax returns, an S corporation's shareholders include their shares of the corporation's separately stated items of income, deduction, loss and credit, as well as their shares of non-separately stated income or loss.
 
Personal Residence –  The dwelling a person occupies as a permanent home and any unoccupied adjacent or contiguous properties that are classified residential.
 
Nonprofit Authority – Authority not intended to provide profit to owners or members.
 
QSSS – A qualified subchapter S subsidiary is an IRS-defined corporation with 35 or fewer shareholders, which has the option to be taxed as a partnership.
 
Partnership – Two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill and expects to share in profits and losses of the business.
 
LLC – A limited liability company is an entity formed under state law by filing articles of organization. Unlike a partnership, no LLC members are personally liable for its debts. An LLC may be classified for federal income tax purposes as a sole proprietorship, partnership or corporation. If the LLC has only one owner, it will automatically be treated as a sole proprietorship, unless an election was made to be treated as a corporation. If the LLC has two or more owners, it will automatically be considered a partnership, unless an election was made to be treated as a corporation. If the LLC does not elect its classification, a default classification of partnership (multi-member LLC) or disregarded entity (taxed as if it were a sole proprietorship) will apply.
 
Question 9
EIN – The employer identification number is a nine-digit number assigned by the Internal Revenue Service, which is also known as a federal tax identification number and used to identify a business entity.
 
Sales Tax Number – A sales tax number is an eight-digit number assigned by the Department of Revenue, which is required if your business sells products or services subject to sales tax. Businesses may apply for sales tax licenses by completing the PA-100 Pennsylvania Enterprise Registration Form, available online.
 
Employer Account Number – An eight-digit number assigned by the Department of Revenue, which identifies employers for employer withholding and personal income tax purposes. Businesses may apply for employer account numbers by completing the PA-100 Pennsylvania Enterprise Registration Form, available online.
 
Corporate Box Number – A number assigned by the Department of Revenue, based on registration information the taxpayer provided to the Department of State when registering for a certificate of authority. Taxpayers may register with the Department of State by calling 717-787-1057. 
 
Utility PURTA – Utility companies subject to public utility realty tax (PURTA).  
 
Unemployment Compensation – An account number assigned by the Department of Labor and Industry. To obtain an unemployment compensation account number, complete the PA-100 Pennsylvania Enterprise Registration Form, available online.
 
Question 10
Each property owner, resident and/or sole proprietor must provide the department with his/her Social Security number. Note that a KOZ application will be denied if any outstanding tax liabilities or unfiled returns are discovered in tax records.
 
Question 11
Please provide the name, address, Social Security number/EIN, phone number and ownership percentage for all persons or businesses that receive pass-through income from the business, including shareholders, partners and members of S Corporations, Partnerships and LLCs. 
 
Any entity with an ownership share of the applicant's company of 20 percent or more that has outstanding tax liabilities will not be able to take advantage of tax benefits until the liabilities are satisfied.
 
Question 12
Indicate when the company and/or resident moved into the zone.
 
Question 13
Please verify information provided on the application is true and correct as submitted. This will be used as your electronic signature. Please remember to print a copy of your application and submit it to DCED.