Instructions For Pa-20s/pa-65 Schedule Oc - Pennsylvania Department Of Revenue - 2012 Page 7
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Economic Development’s website at
The amount of the tax credit
Although any unused tax credits
or call the DCED
passed through to partners,
may not be carried forward, the
Customer Service Center at 1-800-
shareholders or members is based on
entity may elect in writing prior to
379-7448.
the percentage of income distribution
the due date of the entity’s tax
from the entity receiving the tax
return to pass through all or a
credit. See the guidelines under
portion of the tax credit to its owners
Keystone Special
Passing Through Tax Credit To Entity
in the taxable year of the
Owners.
contribution or the taxable year
Development Zone
●
immediately following the year of
The tax credit cannot be applied
Tax Credit
contributions.
against any tax withheld by an
●
To make an irrevocable election to
employer from an employee under
The Pennsylvania Department of
Article III of the Tax Reform Code.
pass through an Educational
Community and Economic
●
Improvement tax credit to partners,
The tax credit expires Dec. 31,
Development (DCED) administers the
shareholders or members, a business
2022.
award of this tax credit. Applications
should visit the Department of
For more information, to apply for
must be submitted to the DCED by
Revenue’s website at
a Strategic Development Area tax
Feb.1 of the year for the previous
and
credit visit the Department of
calendar year. Eligibility is based on
complete REV-1123, Educational
Community and Economic
businesses that build structures on
Improvement Tax Credit Election
Development’s website at
and then employ additional workers
Form. The entity must complete a
or call the DCED
in/on land designated as a special
separate REV-1123 each year the tax
Customer Service Center at 1-800-
industrial area in the Land Recycling
credit is awarded and not used in
379-7448.
and Environment Remediation
whole or in part.
Standards Act of 1995. Land must
●
REV-1123 must be sent to the
have no permanent vertical
Educational
Revenue’s Bureau of Corporation
structures attached prior to July 1,
Taxes by the tax return filing due
2011. Credit is $2,100 for each full-
Improvement Tax
date (including extensions) of the
time or full-time equivalent (35 hours
Credit (EITC)
entity. However, REV-1123 must be
or more) new employee working 90
sent separately from the entity’s tax
percent within a keystone special
The Pennsylvania Department of
return.
development zone over and above
Community and Economic
●
The amount of the tax credit
each full-time or full-time equivalent
Development (DCED) administers the
passed through to partners,
employee working prior to Jan. 1,
award of this tax credit to eligible
shareholders or members is based on
2012.
businesses and individuals
the percentage of income distribution
For more information, to apply for
contributing to scholarship
from the entity receiving the tax
a Keystone Special Development
organizations (including pre-
credit.
Zone Tax Credit, visit the
kindergarten scholarship
●
Department of Community and
The tax credit may be applied to
organizations) and educational
Economic Development’s website at
100 percent of the entity’s liability or
improvement organizations, in order
or call the DCED
100 percent of the entity owners’
to promote expanded educational
Customer Service Center at 1-800-
liabilities.
opportunities for students in
379-7448.
●
Pennsylvania does not allow the
Pennsylvania.
Qualified businesses, including
deduction of certain expenses used
Qualified businesses, including
pass through entities and individuals,
to qualify for the Educational
pass through entities and individuals
can apply the tax credit against the
Improvement Tax Credit. If the
can apply the tax credit against the
following Pennsylvania state taxes for
expenses were deducted in
following Pennsylvania state taxes:
tax year beginning 2012:
calculating federal-taxable income,
●
Capital stock/foreign franchise tax
●
Capital stock/foreign franchise tax
the amount should be reported as a
●
Corporate net income tax
●
reduction in expenses on PA-20S/PA-
Corporate net income tax
●
Bank shares tax
65 Schedule M, Part B, Section E,
●
Bank shares tax
●
Mutual thrift institutions tax
Line f. Do not reduce Pennsylvania-
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Mutual thrift institutions tax
●
Title insurance and trust company
taxable income by amounts paid to
●
Title insurance and trust company
shares tax
qualify for the tax credit.
shares tax
●
Insurance gross premiums tax
●
The tax credit cannot be applied
●
Personal income tax
unauthorized, domestic/foreign
against any tax withheld by an
marine)
employer from an employee under
Guidelines for the Keystone
●
Surplus lines tax
Article III of the Tax Reform Code.
Special Development Zone
●
Personal income tax
●
There is no expiration date for the
Tax Credit
awarding of the Educational
Guidelines for the
●
The tax credit can be earned for
Improvement tax credit.
Educational Improvement
ten years of a 15-year period
beginning July 1, 2012 through June
Tax Credit
For more information and to
30, 2026.
●
The entity decides if the tax credit
apply for an Educational
●
The entity decides if the tax credit
will be applied towards corporation
Improvement tax credit, visit the
will be applied towards corporation
Department of Community and
tax and/or passed through to its
tax and/or passed through to its
partners, shareholders or members.
●
The tax credit cannot be sold or
assigned.
Instructions for PA-20S/PA-65 Schedule OC
- 7 -
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