Form Rev-1601(A) - Tax Credit Certification Request Form

Form Rev-1601(A) - Tax Credit Certification Request Form - 2000 Page 2

SUBJECT:

A TAX CREDIT FOR PENNSYLVANIA EMPLOYERS

TO:

FIRMS WITH PENNSYLVANIA BUSINESS SITES

ATTN: HUMAN RESOURCES AND FISCAL MANAGEMENT

OPPORTUNITY FOR EMPLOYERS:

We have now made it easier for you to qualify for Employment Incentive Payment (EIP) tax

credits. For each qualified new hire, your firm may earn up to $7,200 in such credits over a three-year

period. These are actual credits – not deductions – which can be used to reduce your Pennsylvania taxes.

PENNSYLVANIA’S EMPLOYMENT INCENTIVE PAYMENT (EIP) TAX CREDITS:

Employers may become eligible to earn the EIP credits through the qualified hire of a person (1)

receiving welfare cash assistance under the Temporary Assistance for Needy Families or General

Assistance categories, or (2) who completed or is completing rehabilitative services approved through a

State plan for vocational rehabilitation services or the U.S. Department of Veteran Affairs.

When persons currently receiving cash assistance or vocational rehabilitation are hired, the

employer completes the required EIP Tax Credit Certification Request Form for each hire. The

completed form must be postmarked or faxed on or before the 21

day after the date the new employee

actually begins work. Within about six weeks, the employer receives a certification letter to keep on file.

The employer earns the direct credits as a percentage of actual wages paid to the employee for up

to three years. The maximum credits for each hire are:

YEAR 1 – 30 percent of the first $9,000 in wages = $2,700

YEAR 2 – 20 percent of the first $9,000 in wages = $1,800

YEAR 3 – 10 percent of the first $9,000 in wages = $ 900

If the employer provides or pays for child care or transportation services for each new employee,

an additional $1,800 in credits may be earned over the three years of EIP eligibility.

The employer must retain the person in the firm’s workforce for at least a year, unless the person

voluntarily quits, becomes disabled, or is fired for cause. If any of these happen, the tax credits are

prorated for the portion of the year that the person was employed by the firm.

The employer claims the EIP tax credits as part of the annual process of filing annual state taxes

with the Pennsylvania Department of Revenue.

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PA-EIP.001 – 01/00

Form Rev-1601(A) - Tax Credit Certification Request Form - 2000 Page 2