Form Rev-765 Ct - Schedule Jc - Annual Report (Page 4 of 8) in pdf

(b) Section not applicable to certain businesses or qualified businesses. –

(1) A business that relocates from a location in a political subdivision in this Commonwealth that is not in a subzone or expansion

subzone to a location in a subzone or expansion subzone may not apply for a credit for an existing job that is transferred,

discontinued or lost in this Commonwealth which is attributable to the relocation.

(2) A business that has relocated pursuant to paragraph (1) and becomes a qualified business may apply for a Keystone Opportunity

Zone Job Tax Credit or Keystone Opportunity Expansion Zone Job Tax Credit for a new full-time job that is created in the

subzone or expansion subzone. A new full-time job is created with a qualified business if the average monthly employment

for that qualified business has increased from the prior 12-month calendar year in the zone.

(c) Application of credit. – A qualified business shall apply for a credit under this section by January 15 for the previous calendar year.

(d) Apportionment. – The Department of Revenue shall apportion a Keystone Opportunity Zone Job Tax Credit or a Keystone

Opportunity Expansion Zone Job Tax Credit for a business that is a qualified business that has not operated in a subzone or expansion

subzone for a full fiscal year.

(e) Credit determinations. – The Keystone Opportunity Zone Job Tax Credit or Keystone Opportunity Expansion Zone Job Tax Credit

shall be determined by multiplying the monthly average of all full-time jobs by the allowance. The allowance for purposes of the

Keystone Opportunity Zone Job Tax Credit or Keystone Opportunity Expansion Zone Job Tax Credit for taxable years beginning

within the dates set forth shall be as follows:

January 1, 2001, to December 31, 2001

$500 per job

January 1, 2002, to December 31, 2002

$750 per job

January 1, 2003, to December 31, 2003

$1000 per job

January 1, 2004, to December 31, 2004

$1250 per job

January 1, 2005, to December 31, 2005

$1250 per job

January 1, 2006, to December 31, 2006

$1250 per job

January 1, 2007, to December 31, 2007

$1250 per job

January 1, 2008, to December 31, 2008

$1250 per job

January 1, 2009, to December 31, 2009

$1250 per job

January 1, 2010, to December 31, 2010

$1250 per job

January 1, 2011, to December 31, 2011

$1250 per job

January 1, 2012, to December 31, 2012

$1250 per job

January 1, 2013, to December 31, 2013

$1250 per job

(f) Notification of credit. – By March 15, the Department of Revenue shall notify the qualified business of the amount of the qualified

business’s job creation tax credit approved.

(g) Limitation on amount of credit. – The tax credit allowed under this section shall only be used to offset a tax liability incurred from

subzone or expansion subzone activities and shall not exceed 50% of the tax liability of a qualified business or person under Article III,

IV or VI of the Tax Reform Code of 1971 for the tax year. The job creation tax credit may not carry back or forward to any other year.

(h) Allocation. – The total amount of the credits approved by the Department of Revenue under this section shall not exceed

$1,000,000 annually. If the credits exceed the $1,000,000 cap in a given year, the credits will be allocated on a pro rata basis.

(i) Calculation of allocation. – If the total amount of Keystone Opportunity Zone Job Tax Credits and Keystone Opportunity

Expansion Zone Job Tax Credits applied for by all qualified businesses under this section exceeds $1,000,000, then the credit to

be received by each qualified business shall be the product of $1,000,000 multiplied by the quotient of the credit applied for by the

qualified business divided by the total of all credits applied for by all qualified businesses, the algebraic equivalent of which is:

qualified business Keystone Opportunity Zone Job Creation Tax Credit or Keystone Opportunity Expansion Zone Job

Creation Tax Credit = $1,000,000 x (the amount of Keystone Opportunity Zone Job Creation Tax Credit or Keystone

Opportunity Expansion Zone Job Creation Tax Credit applied for by the qualified business/the sum of all Keystone

Opportunity Zone Job Creation Tax Credits and Keystone Opportunity Expansion Zone Job Creation Tax Credits applied

for by all qualified businesses).

(j) Pass-through entities. – The Keystone Opportunity Zone Job Creation Tax Credit and Keystone Opportunity Expansion Zone Job

Creation tax credit provided for in this section shall apply to the following:

(1) A partner or member of a partnership or association that qualifies under this section shall be entitled to a job creation tax

credit in proportion to the partner’s or member’s share, whether or not distributed, of the income or gain received by the

partnership or association for its taxable year.

(2) A shareholder of a Pennsylvania S Corporation that qualifies under this section shall be entitled to a job creation tax credit

in proportion to the shareholder’s pro rata share, whether or not distributed, of the income or gain received by the corporation

for its taxable year ending within or with the shareholder’s taxable year.

(3) No partnership, association, or Pennsylvania S Corporation, or partner, member or shareholder, may claim any other tax

benefit, expense or credit for the same Keystone Opportunity Zone Job Creation Tax Credit or Keystone Opportunity

Expansion Zone Job Creation Tax Credit.

Form Rev-765 Ct - Schedule Jc - Annual Report Page 4

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