2007 Archives

Express Dynamics Receives $100,000 in Keystone Innovation Zone (KIZ)Tax Credits

HARRISBURG (MARCH 22, 2007) - The Harrisburg Market Keystone Innovation Zone (KIZ) recently announced that Express Dynamics, a company specializing in the development of custom business software, received $100,000 in tax credits through the Keystone Innovation Zone Tax Credit Program. KIZ tax credits are distributed through the Harrisburg Market KIZ, led by the Harrisburg Regional Chamber & CREDC. The Department of Community and Economic Development awarded the tax credits to Express Dynamics in December 2006; Express Dynamics sold the tax credits in February 2007 to an unnamed buyer.

According to Treff LaPlante, President of Express Dynamics, Express Dynamics will use the funds to build a sales and marketing staff that will drive a national product launch. Ongoing revenue from this initiative is expected to fuel continued growth. "The receipt of this money is a huge kick-start to sales and product launch efforts," stated LaPlante.

Ryan Keith, Director of the Harrisburg Market KIZ, added, "The cash from the sale of KIZ Tax Credits provides startup companies with options to grow their business. The program rewards companies that are growing by providing a tangible, cash incentive to increase sales.  The Harrisburg Market KIZ is committed to helping companies like Express Dynamics grow and this program is just one of the many ways we are trying to do that."

Mike McCann, President of MVM Associates, who brokered the sale on behalf of Express Dynamics, said, "MVM Associates appreciated having the opportunity to sell these credits. We pride ourselves on getting the highest dollar return and quickest turnaround time in the business, and we are happy to see that Express Dynamics got both."

On the brokering process, which can be laboring for some programs, LaPlante said, "We were extremely pleased with the service we received from our tax credit broker, MVM Associates.  The net return on the sale was higher than quoted by other brokers, and MVM's quick turnaround time was just as advertised. MVM walked me through the steps, promptly answered all questions, and exceeded my expectations for sale price. They were excellent to work with."

Companies who are located in the Harrisburg Market KIZ, are less than eight years of age and operate in one or more of the following target industries are eligible to receive the KIZ tax credits: advanced manufacturing, life sciences or business technology solutions. Eligible companies can apply for up to $100,000 in tax credits per year through this program. The amount of the tax credit is determined by the company's growth in gross revenue for the most recently filed tax year in the KIZ over the previous tax year in the KIZ, with the credit amounting to 50 percent of the difference, up to $100,000. The credits are able to be kept for current or future tax obligations. The company may also sell the tax credits for cash through a private bidding process.

KIZ sites in the Harrisburg Market include the Murata Business Center and Business Central in Carlisle, the Hershey Center for Applied Research and the Campus of Penn State Milton S. Hershey Medical Center/College of Medicine in Hershey, and the Harrisburg Transportation Center, Harrisburg University of Science and Technology, and the Veteran Memorial Building in downtown Harrisburg.

A total of six companies from the Harrisburg Market KIZ received KIZ Tax Credits, totaling over $400,000 in 2006. As many as 10 companies from the Harrisburg region are expected to receive the KIZ Tax Credit in 2007.

The Harrisburg Market KIZ strives to assist colleges and universities with the commercialization process of R&D activities, enhance entrepreneurial vitality within our region, and contribute to the growth of jobs and career opportunities within the Harrisburg market. More information on the Harrisburg Market KIZ can be found by visiting www.KIZToolbox.com.

The Harrisburg Regional Chamber & CREDC serves as a catalyst for promoting growth and quality of life in Cumberland , Dauphin and Perry Counties by providing a unique blend of business, community and economic development and advocacy services under one roof to boost our economic vitality and livability as a region. HRC/CREDC has been accredited with four stars from the United States Chamber of Commerce.