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

For more information, to apply for

Qualified businesses, including

Guidelines for the Job

pass through entities, can apply the

a Job Creation tax credit, visit the

Creation Tax Credit

carry forward of unused tax credit

Department of Community and

●

The entity decides if the tax credit

against the following Pennsylvania

Economic Development’s website at

will be applied towards corporation

state taxes:

or call the DCED

tax and/or passed through to its

●

Customer Service Center at 1-800-

corporate net income tax

partners, shareholders or members.

379-7448.

●

bank shares tax

●

The tax credit cannot be sold or

●

title insurance and trust company

assigned.

shares tax

●

The entity may carry forward any

Research and

●

mutual thrift institutions tax

unused tax credits to no more than

Development (R&D)

●

personal income tax

the five succeeding taxable years.

●

The tax credit may be carried back

Tax Credit

Note.

This tax credit is not

but is not refundable. If carried back,

Revenue’s Bureau of Corporation

applicable against capital

interest will be charged.

Taxes administers the award of this

stock/foreign franchise tax liabilities.

●

The tax credit can be used to offset

tax credit to businesses and

100 percent of the entity’s tax

individuals performing qualified

This tax credit is limited to 90

liabilities or 100 percent of the entity

research in Pennsylvania, to

percent of a business’ total tax

owners’ tax liabilities if passed

encourage businesses in the

liability in any given year. Unused tax

through.

Commonwealth to conduct research,

credits may be applied to one or

●

The amount of the tax credit

especially research of a technological

more of the ten immediate

passed through to partners,

or scientific nature.

succeeding years, as long as tax

shareholders or members is based on

Qualified businesses, including

credits do not exceed 90 percent of

the percentage of ownership in the

pass through entities and individuals

the tax liability in any year.

entity receiving the tax credit.

can apply the tax credit against the

An employer claims the tax credit

●

A company which receives job

following Pennsylvania state taxes:

by submitting the certification

creation tax credits and fails to

●

capital stock/foreign franchise tax

received from Department of Labor

substantially maintain existing

●

corporate net income tax

and Industry for each employee hired

operations and the operations related

●

personal income tax

and the PA Schedule W with the

to the job creation tax credits in this

appropriate Pennsylvania tax return.

Commonwealth for a period of five

Guidelines for the Research

For more information, visit the

years from the date the company

Department of Revenue’s website at

and Development Tax Credit

first submits a job creation tax credit

certificate to the Department of

●

The tax credit must first be applied

Revenue shall be required to refund

to the entity’s corporate tax liability,

to the Commonwealth the total

if any, for the year in which the tax

Job Creation Tax

amount of tax credit or credits

credit is awarded before it can be

Credit

granted.

passed through to its partners,

●

A company which receives job

shareholders or members.

The Pennsylvania Department of

creation tax credits and fails to

●

The tax credit can be sold or

Community and Economic

create the approved number of new

assigned. Refer to

Saleable or

Development (DCED) administers the

jobs within three years of the start

Assignable Tax

Credits.

award of this tax credit. Eligibility is

date will be required to refund to the

● A purchased or assigned tax

based on employers creating 25 or

Commonwealth the total amount of

credit

may be applied to no more

more jobs or increasing employment

tax credit or credits granted.

than 75 percent of the tax liability of

by 20 percent within three years

●

The tax credit cannot be applied

the purchaser or assignee.

from a negotiated start date. The

against any tax withheld by an

●

The tax credit may not be carried

amount of tax credit for each job is

employer from an employee under

back and is not

refundable.

$1,000. This tax credit can be

Article III of the Tax Reform Code.

●

The amount of the tax credit

rescinded if the job is not maintained

passed through to partners,

for 5 years.

An employer claims the tax credit

shareholders and members is based

Qualified businesses, including

or passes it through to entity owners

on the percentage of income

pass through entities and individuals,

by submitting the claim form with the

distribution from the entity receiving

can apply the tax credit against the

certification received from DCED for

the tax credit.

following Pennsylvania state taxes:

each job created to:

●

As of Jan. 1, 2005, the R & D tax

●

capital stock/foreign franchise tax

credit can be applied to 100 percent

●

corporate net income tax

PA DEPARTMENT OF REVENUE

of the recipient’s liability. However,

●

bank shares tax

BUREAU OF CORPORATION TAXES

any R & D tax credit issued before

●

mutual thrift institutions tax

PO BOX 280701

2005 may only be applied to 50

●

insurance gross premiums tax

HARRISBURG PA 17128-0701

percent of the tax liability. See the

●

utilities gross receipts tax

guidelines under

Passing Through

●

title insurance and trust company

If this certification form is not

Tax Credit To Entity Owners.

shares tax

received, the tax credit will not be

●

Any R & D tax credit issued before

●

personal income tax

applied to any tax accounts. The tax

2006 could be passed through and

credit must be claimed by the

then carried over if not completely

taxpayer within 5 years of the

used in the year the tax credit was

effective date.

Instructions for PA-20S/PA-65 Schedule OC

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Instructions For Form Pa-20s/pa-65 - Schedule Oc - Other Credits - 2011 Page 3

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