TAX INCENTIVES FOR BUSINESS

The City of Chester is unmatched in the area when it comes to opportunities for incoming businesses. In addition to it's great location and extremely affordable real estate, the city also has many great economic incentive programs available for eligible businesses that are located in, or wish to locate to the city. If you would like more information concerning any of these exciting programs, feel free to contact James Turner at (610) 447-7870.

Keystone Opportunity Zones

The City of Chester is the only municipality in Delaware County that has been approved by the Pennsylvania Department of Community and Economic Development (DCED) for designation of parts of the City as Keystone Opportunity Zones (KOZ). In order to stimulate investment in underdeveloped or distressed sites, KOZ's are specific parcels that are virtually exempt from all state and local taxes through the year 2013. Eligible entities that invest in a KOZ may be exempt from city, county, and school district real estate taxes, Act 511 taxes including earned income/net profit taxes, business gross receipts taxes, occupancy taxes, and business privilege taxes. In addition, businesses that locate in a Chester KOZ may also be able to claim a credit against their state corporate income tax, capital stock franchise tax, and sales and use taxes.

LERTA

The City of Chester has adopted a provision under the Local Economic Revitalization Tax Assistance Act (LERTA) to encourage the revitalization of deteriorated properties in portions of the City of Chester. Under the LERTA program, a company interested in expanding or constructing a new facility can defer the increase in real estate taxes on the value of the construction over a period of ten years. During the first year, the real estate tax attributable to the increased assessment due to the actual costs of improvements is 100 percent exempt. In subsequent years, the additional real estate taxes are phased in at a rate of 10 percent per year until the full assessment is reached in year ten.

Keystone Innovation Zone

The Delaware County KIZ program was established in May 2006 as a state-designated area for the encouragement of innovative thinking, creativity and technology transfer through strong local partnerships and resources. Villanova University and Widener University are the host institutions of higher education for the Delaware County KIZ which assists local entrepreneurs, start-up companies, and progressive businesses with implementing an innovative idea from start to finish.

The Delaware County KIZ facilitates partnerships between community players, economic development organizations and education institutions which provide clients with local resources and services for development, innovation, and growth that will enable emerging companies to move forward with developing and commercializing their products and processes. Equally as important, the Delaware County KIZ is a catalyst to partner emerging tech-based companies with Widener University and Villanova University.