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

especially research of a technological or

be used in the year the credit is

● The tax credit may be applied to

passed through.

100 percent of the entity’s liability,

scientific nature.

or to 100 percent of the entity

● The tax credit cannot be applied

Effective July 2, 2012, the sunset date

owners’ liabilities.

against any tax withheld by an em-

has been removed, the cap on the

ployer from an employee under Ar-

● The tax credit can be sold or as-

credit is reestablished at $55 million a

signed. Refer to

Saleable or Assign-

ticle III of the Tax Reform Code.

year and $11 million of the credit will

able Tax

Credits.

be used by qualifying small business.

The entity may pass the tax credit

● A purchased or assigned tax credit

through to entity owners by submitting

Qualified businesses, including pass

the claim form with the certification re-

may be applied to no more than 50

through entities and individuals can

ceived from the Department of Rev-

percent of the tax liability of the

apply the tax credit against the follow-

purchaser or assignee. If the credit

enue to:

ing Pennsylvania state taxes:

was purchased in 2013 it can be

PA DEPARTMENT OF REVENUE

● Capital stock/foreign franchise tax

carried forward to 2014. If the

BUREAU OF CORPORATION TAXES

credit was purchased in 2014, it

● Corporate net income tax

PO BOX 280701

can be carried forward to 2015.

HARRISBURG PA 17128-0701

● Personal income tax

● The entity may carry forward any

For more information, to apply for a Re-

Guidelines for the Research

unused tax credits to no more than

search & Development tax credit, visit

and Development Tax Credit

the three succeeding taxable years.

Revenue’s Online Customer Service

● The tax credit must first be applied

● The tax credit may not be carried

Center at

and

to the entity’s corporate tax liabil-

back and is not refundable.

complete form REV-545.

ity, if any, for the year in which the

● The amount of the tax credit

To sell or assign a Research & Develop-

tax credit is awarded before it can

passed

through

partners,

ment tax credit, visit the Department of

be passed through to its partners,

shareholders or members is based

Community and Economic Develop-

shareholders or members.

on the percentage of income distri-

ment’s website at

● The tax credit can be sold or as-

bution from the entity receiving the

call the DCED Customer Service Center

signed. Refer to

Saleable or Assign-

tax credit. The partner, shareholder

at 1-800-379-7448.

able Tax

Credits.

or member must use the tax credit

FILM PRODUCTION TAX CREDIT

in the year it is passed through.

● A purchased or assigned tax credit

The Pennsylvania Department of Com-

Refer to

Passing Through Tax Credit

may be applied to no more than 75

munity and Economic Development

To Entity

Owners.

percent of the tax liability of the

(DCED) administers the award of this

purchaser or assignee.

● A taxpayer which claims a tax

tax credit to individuals or companies

credit and fails to incur the amount

that produce a feature film, television

● The tax credit may not be carried

of qualified film production ex-

film, television talk or game show se-

back and is not refundable.

penses agreed to in section 1703-

ries, television commercial, television

D(c)(3) for a film in that taxable

● The amount of the tax credit

pilot or each episode of a television se-

year shall repay to the common-

passed through to partners, share-

ries intended as programming for a na-

wealth the amount of the film pro-

holders and members is based on

tional audience.

duction tax credit claimed under

the percentage of income distribu-

Qualified businesses, including pass

this article for the film.

tion from the entity receiving the

through entities and individuals may

tax credit.

● The tax credit cannot be applied

apply the tax credit against the follow-

against any tax withheld by an em-

● Buyer shall immediately claim the

ing Pennsylvania state taxes:

ployer from an employee under Ar-

credit in the taxable year in which

● Capital stock/foreign franchise tax

ticle III of the Tax Reform Code.

sale or assignment is made.

● Corporate net income tax

For more information, to apply for a Film

● As of Jan. 1, 2005, the R & D tax

Production tax credit, visit the Depart-

credit can be applied to 100 per-

● Bank shares tax

ment of Community and Economic De-

cent of the recipient’s liability. How-

● Insurance gross premiums tax (ex-

velopment’s website at

ever, any R & D tax credit issued

cluding surplus lines, unauthorized,

or call the DCED Customer Service

before 2005 may only be applied to

domestic/foreign marine)

Center at 1-800-379-7448.

50 percent of the tax liability. Refer

Passing Through Tax Credit To

● Personal income tax

To sell/assign the Film Production

Entity

Owners.

tax credit, visit the Department of

Guidelines for the Film

Community and Economic Develop-

Production Tax Credit

● Any R & D tax credit issued before

ment’s website at

2006 could be passed through and

● The tax credit must first be applied

call the DCED Customer Service Center

then carried over if not completely

to the entity’s corporate tax liabil-

at 1-800-379-7448.

used in the year the tax credit was

ity, if any, for the year in which the

KEYSTONE INNOVATION ZONE

passed through. However, any R &

tax credit is awarded before it can

(KIZ) TAX CREDIT

D tax credit issued after Dec. 31,

be passed through to its partners,

2005 that is passed through must

shareholders or members.

The

Pennsylvania

Department

Instructions For Form Pa-20s/pa-65 - Schedule Oc - Other Credits - 2013 Page 4

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