Instructions For Pa-20s/pa-65 Schedule Oc - Pennsylvania Department Of Revenue - 2012
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112012
Pennsylvania Department of Revenue
Instructions for PA-20S/PA-65 Schedule OC
Other Credits
What’s New
PA-65 Schedule M, Part B, Section E,
Enhancement and Protection, and
Line f. Do not reduce Pennsylvania-
Keystone Innovation Zone.
Six lines were added or changed
taxable income by amounts paid to
The portion of the tax credit that
including four new tax credits:
qualify for the tax credit. For
exceeds the tax liability of the
Line 12 – PA Keystone Special
additional information, see the
awardee of the tax credit may be
Development Zone Tax Credit
specific section for these tax credits.
carried forward unless the awardee
Line 13 – PA Opportunity
elects to sell or assign the tax credit
Scholarship Tax Credit
Tax Credits Claimed
or pass it through to its owners.
Line 14 – PA Historic Preservation
Special rules apply for taxpayers
Incentive Tax Credit
on Schedule OC
that sell/assign restricted tax credits
Line 15 – PA Community-Based
as well as the taxpayers who
Tax credits are often awarded to PA
Services Tax Credit
purchase them or to whom tax
S corporations or partnerships and
Line 16 – Other restricted credits
credits are assigned. The rules apply
passed through to entity owners.
not listed above. Enter type.
to all taxpayers, whether or not they
However, sometimes they are
Line 17 - Total PA Other Credits.
are incorporated. For specific
awarded to individual or fiduciary
Add Lines 1 through 16 and enter
information regarding these rules,
taxpayers. The PA S corporations and
the total here.
review Corporation Tax Bulletin
partnerships report tax credits on PA-
2008-02 on the Department of
20S/PA-65 Schedule OC. The
General Information
Revenue’s website,
individuals and entity owners report
tax credits on PA-40 Schedule OC.
Tax credits are often sold through
Different provisions apply to various
Purpose of Schedule
credit brokers; however, a credit
situations, so please review the
broker is not a requirement of sale.
A PA S corporation, partnership and
specific information for each tax
For additional information about
limited liability company filing as a
credit.
using purchased or assigned tax
partnership or PA S corporation for
For each tax credit claimed, the
credits, see the specific section for
federal income tax purposes uses PA-
entity must submit with PA-20S/PA-
each tax credit.
65 Schedule OC and the certificate or
20S/PA-65 Schedule OC to enter its
share for each tax credit received
notification that approved each tax
Personal Income
after applying the tax credit to the
credit claimed.
entity’s corporate liability, if any.
Following is some general
Tax Reporting
A tax credit passed through from
information regarding tax credits.
● All of the restricted tax credits can
another entity can only be applied to
Requirements for
be claimed against any class of
tax liability resulting from the RCT-
Sale of Restricted
101, PA Corporate Tax Report. Do
income.
not report a tax credit passed
● Restricted tax credits are
Tax Credits
through from another entity on PA-
nonrefundable. If applicable, other
20S/PA-65 Schedule OC.
nonrefundable credits must be
Seller of a Restricted Tax
applied to the account before
Credit
restricted tax credits.
Alternative Energy
● The request to pass through tax
For Pennsylvania personal income tax
Production Tax Credit
credit to an entity owner is
purposes, the sales of restricted tax
irrevocable, therefore the entity
With the changes in 2009 to Act 48
credits are taxable as gains on the
should not pass through more than
in HB 1531, the Alternative Energy
sale, exchange or disposition of
the owner can use in any single year.
Production tax credit has been
property to the sellers or original
● Tax credits passed through from
suspended for 2009/2010 and
awardees of the restricted tax
pass through entities to other pass
2010/2011 fiscal years.
credits.
through entities or to estates or
The taxpayer selling the restricted
trusts may not be passed through to
Reduction in
tax credit reports the sale of the tax
owners or beneficiaries.
credit as a sale of intangible property
Expenses
for Pennsylvania personal income tax
Saleable or
Pennsylvania does not allow the
purposes on PA-20S/PA-65 Schedule
deduction of certain expenses used
D.
Assignable Tax
to qualify for the Neighborhood
The taxpayer’s cost basis in the
Credits
Assistance Program and the
restricted tax credit sold is usually $0
Educational Improvement tax credits.
as the tax credit is awarded based
The saleable restricted tax credits
If the expenses were deducted in
upon income or expenses already
include Research and Development,
calculating federal-taxable income,
included in the current or a prior
Film Production, Neighborhood
the amount should be reported as a
year’s tax return(s) whereas no
Assistance Program, Resource
reduction in expenses on PA-20S/
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