REV-1185 (10-11)
NEIGHBORHOOD IMPROVEMENT ZONE PROGRAM
Supplemental Apportionment Worksheet for Corporations
Any business located within the Neighborhood Improvement Zone that is subject to capital stock/foreign fran-
chise tax or corporate net income tax must complete this worksheet to apportion corporate taxes attributable
to the business location(s) within the NIZ. Please attach the worksheet(s) to the NIZ Tax Report.
Worksheet Instructions
SECTION A: Property Factor
Within the NIZ – The average value of the taxpayer’s real and tangible personal property owned and used in
the NIZ plus eight times the rental rate for real and tangible personal property rented and used in the NIZ.
Within PA – The average value of the taxpayer’s real and tangible personal property owned and used in PA
plus eight times the rental rate for real and tangible personal property rented and used in PA. If the taxpayer
uses three-factor apportionment in calculating its capital stock/foreign franchise tax or corporate net income
tax, this amount will be the property reported inside PA on Table 1 of the Tables Supporting Determination of
Apportionment Percentage, form RCT-106.
SECTION B: Payroll Factor
Within the NIZ – Total compensation paid in the NIZ. Compensation is considered paid in the NIZ under all of
the following scenarios:
1. The person's service is performed entirely within the NIZ;
2. The person's service is performed within and outside the NIZ, but the service performed outside the
NIZ is incidental to the service performed within the NIZ; and
3. Some of the service is performed in the NIZ, and the base of operations is in the NIZ.
• If there is no base of operations, compensation is paid in the NIZ if the place from which the
service is directed or controlled is in the NIZ.
• If the place from which the service is directed or controlled is not in a location in which the
employee’s work is performed, compensation is paid in the NIZ if the employee’s residence is
within the NIZ.
Within PA – All compensation paid in PA. If the taxpayer uses three-factor apportionment in calculating its cap-
ital stock/foreign franchise tax or corporate net income tax, this amount will be the payroll reported inside PA
on Table 2 of the Tables Supporting Determination of Apportionment Percentage, form RCT-106.
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