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

NEIGHBORHOOD ASSISTANCE

the percentage of income distribu-

● Personal income tax

PROGRAM (NAP) TAX CREDIT

tion from the entity receiving the

Guidelines for the Strategic

tax credit. The partner, shareholder

The Pennsylvania Department of Com-

Development Area Job Creation

or member must use the tax credit

munity and Economic Development

Tax Credit

in the year it is passed through.

(DCED) administers the award of this

● The tax credit cannot be applied to

Refer to

Passing Through Tax Credit

tax credit to businesses and individuals

more than 50 percent of the tax li-

To Entity

Owners.

that contribute to neighborhood organ-

ability of the awardee or of the

izations and engage in activities that

● Pennsylvania does not allow the

owner of a pass through entity.

promote community economic develop-

deduction of certain expenses used

ment in impoverished areas.

● The entity decides if the tax credit

to qualify for the Neighborhood As-

will be applied towards corporation

sistance Program tax credit. If the

The NAP tax credit also includes the En-

tax and/or passed through to its

expenses were deducted in calcu-

terprise Zone tax credit. All the same

partners, shareholders or members.

lating federal-taxable income, the

rules

for

passing

through

and

amount should be reported as a re-

selling/assigning tax credits apply to

● The tax credit cannot be sold or

duction in expenses on PA-20

both programs.

assigned.

S/PA-65 Schedule M, Part B, Sec-

DCED will prioritize credit applications

● Any unused tax credits may not be

tion E, Line f. Do not reduce Penn-

involving charitable food programs and

carried back or carried over and

sylvania-taxable

income

establish a credit cap of $18 million.

are not refundable. The tax credit

amounts paid to qualify for the tax

must be used in the taxable year of

credit.

Qualified businesses, including pass

the contribution or the taxable year

through entities and individuals can

● The tax credit may be applied to

following the year of contribution.

apply the tax credit against the follow-

100 percent of the entity liability or

ing Pennsylvania state taxes:

● The amount of the tax credit

to 100 percent of the entity own-

passed through to partners, share-

ers’ liabilities.

● Capital stock/foreign franchise tax

holders or members is based on

For more information, to apply for a

● Corporate net income tax

the percentage of income distribu-

Neighborhood Assistance Program tax

tion from the entity receiving the

● Bank shares tax

credit or to sell/assign a tax credit,

tax credit. See the guidelines

visit the Department of Community

● Mutual thrift institutions tax

under

Passing Through Tax Credit

and Economic Development’s website

To Entity

Owners.

● Title insurance and trust company

call

the

shares tax

DCED Customer Service Center at

● The tax credit cannot be applied

1-800-379-7448.

against any tax withheld by an em-

● Insurance gross premiums tax

ployer from an employee under Ar-

STRATEGIC DEVELOPMENT AREA

● Excise tax on foreign corporations

ticle III of the Tax Reform Code.

JOB CREATION TAX CREDIT

● Personal income tax

● The tax credit expires Dec. 31, 2022.

The Pennsylvania Department of Com-

munity and Economic Development

Guidelines for the Neighborhood

For more information, to apply for a

(DCED) administers the award of this

Assistance Program Tax Credit

Strategic Development Area tax credit

tax credit to eligible businesses and in-

● The tax credit must first be applied

visit the Department of Community

dividuals whose business activities con-

to the entity’s corporate tax liabil-

and Economic Development’s website

tribute to economic development and

ity, if any, for the year in which the

call

the

foster growth in designated areas.

tax credit is awarded before it can

DCED Customer Service Center at

be passed through to its partners,

1-800-379-7448.

Job credits are also available for busi-

shareholders or members.

nesses to maintain and create new jobs

EDUCATIONAL IMPROVEMENT

in these areas.

● The tax credit can be sold or as-

TAX CREDIT (EITC)

signed. Refer to

Saleable or Assign-

Qualified businesses, including pass

The Pennsylvania Department of Com-

able Tax

Credits.

through entities and individuals can

munity and Economic Development

apply the tax credit against the follow-

(DCED) administers the award of this

● A purchased or assigned tax credit

ing Pennsylvania state taxes:

tax credit to eligible businesses and in-

may be applied to 100 percent of

dividuals contributing to scholarship

the tax liability of the purchaser or

● Capital stock/foreign franchise tax;

organizations (including pre-kinder-

assignee.

● Corporate net income tax

garten scholarship organizations) and

● The entity may carry forward any

educational improvement organiza-

● Bank shares tax

unused tax credits to no more than

tions, in order to promote expanded

the five succeeding taxable years.

● Mutual thrift institutions tax

educational opportunities for students

in Pennsylvania.

● The tax credit may not be carried

● Title insurance and trust company

back and is not refundable.

shares tax

Qualified businesses, including pass

● The amount of the tax credit

through entities and individuals can

● Insurance gross premiums tax

passed through to partners, share-

apply the tax credit against the follow-

holders or members is based on

● Utilities gross receipts tax

ing Pennsylvania state taxes:

Instructions For Form Pa-20s/pa-65 - Schedule Oc - Other Credits - 2013 Page 6

Related Articles

Related forms

Related Categories