Instructions For Pa-20s/pa-65 Schedule Oc - Pennsylvania Department Of Revenue - 2012 Page 6
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The NAP tax credit also includes
●
The tax credit may not be carried
The tax credit may be applied to
the Enterprise Zone tax credit. All the
back and is not refundable.
100 percent of the entity liability or
same rules for passing through and
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to 100 percent of the entity owners’
The amount of the tax credit
selling/assigning tax credits apply to
liabilities.
passed through to partners,
both programs.
For more information, to apply for
shareholders or members is based on
Effective July 2, 2012, DCED will
a Neighborhood Assistance Program
the percentage of income distribution
prioritize credit applications involving
tax credit or to sell/assign a tax
from the entity receiving the tax
charitable food programs and
credit, visit the Department of
credit. The partner, shareholder or
establish a credit cap of $18 million.
Community and Economic
member must use the tax credit in
Qualified businesses, including
Development’s website at
the year it is passed through. Refer
pass through entities and individuals
or call the DCED
to
Passing Through Tax Credit To
can apply the tax credit against the
Customer Service Center at 1-800-
Entity Owners.
following Pennsylvania state taxes:
379-7448.
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A business which claims a tax
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Capital stock/foreign franchise tax
credit and fails to maintain a best
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Corporate net income tax
management practice for the
Strategic
●
required period, the owner of the
Bank shares tax
property upon which the project
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Mutual thrift institutions tax
Development Area
exists shall return to the Department
●
Title insurance and trust company
Job Creation Tax
of Revenue the amount of the tax
shares tax
credit originally granted.
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Insurance gross premiums tax
Credit
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The tax credit may be applied to
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Excise tax on foreign corporations
The Pennsylvania Department of
100 percent of the entity liability or
●
Personal income tax
Community and Economic
to 100 percent of the entity owners’
Development (DCED) administers the
liabilities.
Guidelines for the
award of this tax credit to eligible
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The tax credit cannot be applied
Neighborhood Assistance
businesses and individuals whose
against any tax withheld by an
Program Tax Credit
business activities contribute to
employer from an employee under
economic development and foster
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The tax credit must first be
Article III of the Tax Reform Code.
growth in designated areas.
applied to the entity’s corporate tax
Job credits are also available for
liability, if any, for the year in which
The entity claims the tax credit or
businesses to maintain and create
the tax credit is awarded before it
passes it through to entity owners by
new jobs in these areas. Tax credit is
can be passed through to its
submitting the claim form with the
available for tax years beginning on
partners, shareholders or members.
certification received from the
or after Jan. 1, 2008.
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The tax credit can be sold or
Department of Revenue to:
Qualified businesses, including
assigned. Refer to
Saleable or
pass through entities and individuals
Assignable Tax Credits.
PA DEPARTMENT OF REVENUE
can apply the tax credit against the
●
A purchased or assigned tax credit
BUREAU OF CORPORATION TAXES
following Pennsylvania state taxes:
may be applied to 100 percent of the
PO BOX 280701
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Capital stock/foreign franchise tax;
tax liability of the purchaser or
HARRISBURG PA 17128-0701
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Corporate net income tax
assignee.
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Bank shares tax
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The entity may carry forward any
If this certification form is not
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Mutual thrift institutions tax
unused tax credits to no more than
received, the tax credit will not be
●
Title insurance and trust company
the five succeeding taxable years.
applied to any tax accounts. The tax
shares tax
●
credit must be claimed by the
The tax credit may not be carried
●
Insurance gross premiums tax
taxpayer within 15 years of the
back and is not refundable.
●
Utilities gross receipts tax
effective date.
●
The amount of the tax credit
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For more information, to apply for
Personal income tax
passed through to partners,
a Resource Enhancement and
shareholders or members is based on
Protection tax credit or to sell/assign
Guidelines for the Strategic
the percentage of income distribution
a tax credit, visit the Dept. of
from the entity receiving the tax
Development Area Job
Agriculture’s website at
credit. The partner, shareholder or
Creation Tax Credit
or call
member must use the tax credit in
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The tax credit cannot be applied to
717-787-8821.
the year it is passed through. Refer
more than 50 percent of the tax
to
Passing Through Tax Credit To
liability of the awardee or of the
Entity Owners.
owner of a pass through entity.
Neighborhood
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Pennsylvania does not allow the
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The entity decides if the tax credit
deduction of certain expenses used
Assistance Program
will be applied towards corporation
to qualify for the Neighborhood
tax and/or passed through to its
(NAP) Tax Credit
Assistance Program tax credit. If the
partners, shareholders or members.
expenses were deducted in
The Pennsylvania Department of
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The tax credit cannot be sold or
calculating federal-taxable income,
Community and Economic
assigned.
the amount should be reported as a
Development (DCED) administers the
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Any unused tax credits may not be
reduction in expenses on PA-20
award of this tax credit to businesses
carried back or carried over and are
S/PA-65 Schedule M, Part B, Section
and individuals that contribute to
not refundable. The tax credit must
E, Line f. Do not reduce
neighborhood organizations and
be used in the taxable year of the
Pennsylvania-taxable income by
engage in activities that promote
contribution or the taxable year
amounts paid to qualify for the tax
community economic development in
following the year of contribution.
credit.
impoverished areas.
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Instructions for PA-20S/PA-65 Schedule OC
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