Land Use & Zoning

What is Pennsylvania's 'Keystone Opportunity Zone' (KOZ) program and how does it affect real estate development?

AA state parks designation protecting natural lands from development
BA state economic development program providing tax exemptions for businesses and developers in designated distressed areas to stimulate investment and job creation✓ Correct
CA PHFA program providing zero-interest mortgages for first-time buyers in designated zones
DA federal Opportunity Zone program unique to Pennsylvania

Explanation

Pennsylvania's Keystone Opportunity Zones (KOZs) are designated areas in economically distressed communities where businesses and individuals receive exemptions from most state and local taxes (income tax, sales tax, property tax) for a specified period. KOZs incentivize commercial and industrial investment in areas that would otherwise be economically unattractive. Real estate developed in KOZs can command premium rents due to the tax benefits passed to tenants/occupants.

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