Instructions For Form Pa-20s/pa-65 - Schedule Oc - Other Credits

receives certification for this tax credit

● Corporate net income tax

owners’ tax liabilities if passed

from L&I.

through.

● Bank shares tax

● The amount of the tax credit

Qualified businesses, including pass

● Mutual thrift institutions tax

through entities, can apply the carry

passed through to partners, share-

holders or members is based on

forward of unused tax credit against the

● Insurance gross premiums tax

the percentage of ownership in the

following Pennsylvania state taxes:

● Utilities gross receipts tax

entity receiving the tax credit.

● Corporate net income tax

● Title insurance and trust company

● A company which receives job cre-

● Bank shares tax

shares tax

ation tax credits and fails to sub-

stantially

maintain

existing

● Title insurance and trust company

● Personal income tax

operations and the operations re-

shares tax

Guidelines for the Job

lated to the job creation tax credits

● Mutual thrift institutions tax

Creation Tax Credit

in this commonwealth for a period

of five years from the date the

● The entity decides if the tax credit

● Personal income tax

company first submits a job cre-

will be applied towards corporation

NOTE: This tax credit is not ap-

ation tax credit certificate to the

tax and/or passed through to its

plicable against capital stock/for-

Department of Revenue shall be

partners, shareholders or members.

eign franchise tax liabilities.

required to refund to the common-

● Credit must be claimed by the tax-

wealth the total amount of tax

This tax credit is limited to 90 percent

payer within five years of the effec-

credit or credits granted.

of a business’ total tax liability in any

tive date on the certificate issued

given year. Unused tax credits may be

● A company which receives job cre-

by DCED.

applied to one or more of the ten

ation tax credits and fails to create

● The entity may claim the tax credit

immediate succeeding years, as long as

the approved number of new jobs

for each new job for a one-, two-

tax credits do not exceed 90 percent of

within three years of the start date

or three-year period, except no tax

will be required to refund to the

the tax liability in any year.

credit may be claimed for more

commonwealth the total amount of

An employer claims the tax credit by

than five years from the date the

tax credit or credits granted.

submitting the certification received

entity first submits a Job Creation

● The tax credit cannot be applied

from Department of Labor and Industry

Tax Credit certificate to the Depart-

against any tax withheld by an em-

for each employee hired and the PA

ment of Revenue.

ployer from an employee under Ar-

Schedule W with the appropriate Penn-

ticle III of the Tax Reform Code.

● Unused tax credits expire five

sylvania tax return.

years from the date the entity sub-

An employer claims the tax credit or

For more information, visit the Depart-

mits a Job Creation Tax Credit cer-

passes it through to entity owners by

ment

Revenue’s

website

tificate to the Department of

submitting the claim form with the cer-

Revenue.

tification received from DCED for each

JOB CREATION TAX CREDIT

job created to:

● Tax credits dated July 1, 2001, or

The Pennsylvania Department of Com-

later can be assigned (in whole or

PA DEPARTMENT OF REVENUE

munity and Economic Development

part) to an entity holding less than

BUREAU OF CORPORATION TAXES

(DCED) administers the award of this

a majority of the voting common

PO BOX 280701

tax credit. Eligibility is based on em-

stock of another related company,

HARRISBURG PA 17128-0701

ployers creating 25 or more jobs or in-

or in which both companies are

creasing employment by 20 percent

If this certification form is not received,

subsidiaries of a third company as

within three years from a negotiated

the tax credit will not be applied to any

defined in IRC §1504 as an affili-

start date. The tax credits are author-

tax accounts. The tax credit must be

ated entity.

ized as single-year or multiple-year

claimed by the taxpayer within 5 years

● Tax credits may not be sold or as-

credits. If the business is a small busi-

of the effective date.

signed to any other entities with no

ness (fewer than 100 employees), it

For more information, to apply for a Job

relationship or ownership ties to

needs to increase employment by 10

Creation tax credit, visit the Department

the entity selling or assigning the

percent within three years. The amount

of Community and Economic Develop-

credit as defined in IRC §1504 as

of tax credit for each job is $1,000.

ment’s website at

an unaffiliated entity.

However, if an unemployed individual

call the DCED Customer Service Center

(for at least 60 days) is hired, the credit

● The tax credit can be used to pay

at 1-800-379-7448.

is increased to $2,500. This tax credit

liabilities prior to the effective date

can be rescinded if the job is not main-

RESEARCH AND DEVELOPMENT

on the certificate issued by DCED

tained for 5 years.

(R&D) TAX CREDIT

with interest imposed from original

Revenue’s Bureau of Corporation Taxes

return due date to effective date of

Qualified businesses, including pass

administers the award of this tax credit

credit.

through entities and individuals, can

to businesses and individuals perform-

apply the tax credit against the follow-

● The tax credit can be used to offset

ing qualified research in Pennsylvania,

ing Pennsylvania state taxes:

100 percent of the entity’s tax lia-

to encourage businesses in the com-

● Capital stock/foreign franchise tax

bilities or 100 percent of the entity

monwealth

conduct

research,

Instructions For Form Pa-20s/pa-65 - Schedule Oc - Other Credits - 2013 Page 3

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