Instructions For Form Pa-20s/pa-65 - Schedule Oc - Other Credits - 2011 Page 7
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8be first applied to the corporate tax
Guidelines for the
●
There is no expiration date for the
liability before it is passed through to
awarding of the Educational
Educational Improvement
the entity’s owners.
Improvement tax credit.
Tax Credit
Consequently if the entity has
●
The entity decides if the tax credit
corporation tax liability, the amount
For more information and to
will be applied towards corporation
of credit reported on Line 3 must be
apply for an Educational
tax and/or passed through to its
less the corporate tax liability.
Improvement tax credit, visit the
partners, shareholders or members.
Pennsylvania does not require a
Department of Community and
●
The tax credit cannot be sold or
reduction in expenses to calculate
Economic Development’s website at
assigned.
the Research and Development tax
or call the DCED
●
Although any unused tax credits
credit. If the entity sells or assigns
Customer Service Center at 1-800-
may not be carried forward, the
the Research and Development tax
379-7448.
entity may elect in writing prior to
credit, it is reported as a gain on PA-
the due date of the entity’s tax
20S/PA-65 Schedule D.
Completing
return to pass through all or a
portion of the tax credit to its owners
Line 4
PA Schedule OC
in the taxable year of the
Film Production Tax Credit
contribution or the taxable year
immediately following the year of
Enter the amount of tax credit from
Business Name
contributions.
the Pennsylvania Department of
Enter the complete name of the
●
Revenue or Pennsylvania Department
To make an irrevocable election to
entity or business as shown on the
of Community and Economic
pass through an Educational
PA-20S/PA-65 Information Return.
Development certification sent to
Improvement tax credit to partners,
you.
shareholders or members, a business
FEIN
If the entity has corporate tax
should visit the Department of
Enter the 9-digit federal employer
liability for the tax year in which the
Revenue’s website at
identification number (FEIN) of the
Film Production tax credit is
and
entity or business as shown on the
approved for use, the tax credit must
complete form REV-1123,
PA-20S/PA-65 Information Return.
be first applied to the corporate tax
Educational Improvement Tax Credit
liability before it is passed through to
Election Form. The entity must
Line Instructions
the entity’s owners.
complete a separate election form
Consequently if the entity has
each year the tax credit is awarded
corporation tax liability, the amount
and not used in whole or in part.
Line 1
of credit reported on Line 4 must be
●
The election form REV-1123 must
Employment Incentive
less the corporate tax liability.
be sent to the Bureau of Corporation
Pennsylvania does not require a
Payments Credit
Taxes by the tax return filing due
reduction in expenses to calculate
date (including extensions) of the
Although no new tax credits are
the Film Production tax credit. If the
entity. However, form REV-1123
being issued, the carry forward of
entity sells or assigns the Film
must be sent separately from the
unused tax credits is allowed. Enter
Production tax credit it is reported as
entity’s tax return.
the amount of any carry forward of
a gain on PA-20S/PA-65 Schedule D.
●
The amount of the tax credit
unused tax credit.
passed through to partners,
Submit a completed PA Schedule
Line 5
shareholders or members is based on
W with all supporting documents.
the percentage of income distribution
Out-of-State Credits
from the entity receiving the tax
Line 2
S Corporations Only
credit.
Job Creation Tax Credit
Certain S corporations are not taxed
●
The tax credit may be applied to
as S corporations (taxed as a C
Enter the amount of tax credit that
100 percent of the entity’s liability or
corporation) in other states or
the Pennsylvania Department of
100 percent of the entity owners’
countries. In such cases an entity
Community and Economic
liabilities.
must account for taxes paid to other
Development approved on the
●
Pennsylvania does not allow the
states or countries in order to claim
certification sent to you.
deduction of certain expenses used
the correct resident tax credit. Note a
Pennsylvania does not require a
to qualify for the Educational
C corporation return must be
reduction in expenses to calculate
Improvement Tax Credit. If the
submitted.
the Job Creation tax credit.
expenses were deducted in
calculating federal-taxable income,
Only Pennsylvania resident
Line 3
the amount should be reported as a
shareholders can claim credit
reduction in expenses on PA-20S/PA-
Research and Development
for taxes paid to other states
65 Schedule M, Part B, Section E, line
Tax Credit
or countries by the entity.
f. Do not reduce Pennsylvania-
Enter the amount of tax credit from
taxable income by amounts paid to
the Pennsylvania Department of
Calculate all other states’
qualify for the tax credit.
Revenue certification sent to you.
apportioned income using the
●
The tax credit cannot be applied
If the entity has corporate tax
Pennsylvania tax rate. The result of
against any tax withheld by an
liability for the tax year in which the
this calculation cannot exceed the tax
employer from an employee under
Research & Development tax credit is
paid to the other state. The
Article III of the Tax Reform Code.
approved for use, the tax credit must
Pennsylvania-apportioned income
Instructions for PA-20S/PA-65 Schedule OC
- 7 -
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