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

Community and Economic Develop-

Keystone Innovation Zone tax credit or

assigned. Refer to

Saleable or As-

ment (DCED) administers the award of

to sell/assign/pass through a tax

signable Tax

Credits.

this tax credit to businesses and indi-

credit, visit the Department of Com-

● A purchased or assigned tax credit

viduals that create designated geo-

munity and Economic Development’s

may be applied to no more than 75

graphic zones to foster innovation and

website at

or call the

percent of the tax liability of the

create entrepreneurial opportunities by

DCED Customer Service Center at

purchaser or assignee.

aligning the combined resources of ed-

1-800-379-7448.

ucational institutions and the private

● The entity may carry forward any

RESOURCE ENHANCEMENT AND

sector.

unused tax credits to no more than

PROTECTION (REAP) TAX CREDIT

the 15 succeeding taxable years.

Qualified businesses, including pass

The program is administered by the

through entities and individuals with

State Conservation Commission (SCC)

● The tax credit may not be carried

business activity in a KIZ can apply this

under the Department of Agriculture.

back and is not refundable.

tax credit against the following Pennsyl-

The program allows farmers and busi-

● The amount of the tax credit

vania state taxes:

nesses to earn tax credits in exchange

passed through to partners, share-

for best management practices on agri-

● Capital stock/foreign franchise tax

holders or members is based on

cultural operations that will enhance

the percentage of income distribu-

● Corporate net income tax

farm production and protect natural re-

tion from the entity receiving the

sources.

● Personal income tax

tax credit. The partner, shareholder

The REAP tax credit in many cases is

or member must use the tax credit

Guidelines for the Keystone

granted directly to individual taxpayers

in the year it is passed through.

Innovation Zone Tax Credit

and may be carried forward to future tax

Refer to

Passing Through Tax Credit

● The tax credit must first be applied

years for use by that individual. How-

To Entity

Owners.

to the entity’s corporate tax liabil-

ever, many individuals prefer to sell the

ity, if any, for the year in which the

● A business which claims a tax

REAP tax credit instead of carrying it

tax credit is awarded before it can

credit and fails to maintain a best

forward. An individual receiving a REAP

be passed through to its partners,

management practice for the re-

tax credit must wait a year after the tax

shareholders or members.

quired period, the owner of the

credit is awarded before selling it.

property upon which the project

● The tax credit may be applied to

Qualified businesses, including pass

exists shall return to the Depart-

100 percent of the entity’s liability

through entities and individuals can

ment of Revenue the amount of the

or to 100 percent of the entity

apply the tax credit against the follow-

tax credit originally granted.

owners’ liabilities.

ing Pennsylvania state taxes:

● The tax credit may be applied to

● The tax credit may not be carried

● Capital stock/foreign franchise tax

100 percent of the entity liability or

back and is not refundable.

to 100 percent of the entity own-

● Corporate net income tax

● The tax credit can be sold or as-

ers’ liabilities.

signed. Refer to

Saleable or Assign-

● Bank shares tax

● The tax credit cannot be applied

able Tax

Credits.

● Mutual thrift institutions tax

against any tax withheld by an em-

● A purchased or assigned tax credit

ployer from an employee under Ar-

● Title insurance and trust company

may be applied to no more than 75

ticle III of the Tax Reform Code.

shares tax

percent of the tax liability of the

The entity claims the tax credit or

purchaser or assignee.

● Insurance gross premiums tax

passes it through to entity owners by

● The entity may carry forward any

● Personal income tax

submitting the claim form with the cer-

unused tax credits to no more than

tification received from the Department

For projects to be eligible for the tax

the four succeeding taxable years.

of Revenue to:

credit, farms, farmers and sponsors

The partner, shareholder or mem-

must apply to the SCC. REAP tax cred-

PA DEPARTMENT OF REVENUE

ber must use the tax credit in the

its can be used by the applicant for up

BUREAU OF CORPORATION TAXES

year it is passed through.

to 15 years, and they are transferable

PO BOX 280701

● The amount of the tax credit

and can be sold or assigned to other

HARRISBURG PA 17128-0701

passed through to partners, share-

taxpayers.

If this certification form is not received,

holders or members is based on

Guidelines for the Resource

the tax credit will not be applied to any

the percentage of income distribu-

Enhancement and Protection

tax accounts. The tax credit must be

tion from the entity receiving the

Tax Credit

claimed by the taxpayer within 15

tax credit. This tax credit cannot be

years of the effective date.

passed through using a claim form

● The tax credit must first be applied

or a request to the Bureau of Cor-

to the entity’s corporate tax liabil-

For more information, to apply for a Re-

ity, if any, for the year in which the

poration Taxes. An application to

source Enhancement and Protection tax

pass through the tax credit must

tax credit is awarded before it can

credit or to sell/assign a tax credit, visit

be sent to Department of Commu-

be passed through to its partners,

the Dept. of Agriculture’s website at

nity and Economic Development.

shareholders or members.

or call

For more information, to apply for a

● The tax credit can be sold or

717-787-8821.

Instructions For Form Pa-20s/pa-65 - Schedule Oc - Other Credits - 2013 Page 5

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