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

and the other states’ apportioned

Line 8

Line 10

income together cannot exceed 100

Resource Enhancement and

Strategic Development Area

percent.

Protection Tax Credit

Jobs Creation Tax Credit

The C corporation from another

Enter the amount of tax credit from

state that is an S corporation for

the Pennsylvania Department of

Pennsylvania reports on Line 5 the

Revenue certification sent to you.

Community and Economic

lesser of the amount of tax paid on

If the entity has corporate tax

Development certification sent to

the apportioned income as compared

liability for the tax year in which the

you. Pennsylvania does not require a

to the tax rate of Pennsylvania.

Resource Enhancement and

reduction in expenses to calculate

The entity then distributes the

Protection tax credit is approved for

the Strategic Development Area Jobs

amount reported on Line 5 according

use, the tax credit must be first

Creation tax credit.

to ownership percentage.

applied to the corporate tax liability

The amount of credit reported on

Line 11

before it is passed through to the

Line 5 is $1,500 because it is less

entity’s owners.

than the amount of tax payable to

Educational Improvement

Consequently if the entity has

Pennsylvania.

Tax Credit

corporation tax liability, the amount

Enter the amount of tax credit from

of credit reported on Line 8 must be

Example

the Pennsylvania Department of

less the corporate tax liability.

Community and Economic

Total income from everywhere $ 100.00

Pennsylvania does not require a

PA-Source income …………..

25,000

Development certification sent to

reduction in expenses to calculate

Other state’s income………….

75,000 x 2.00 percent (0.0200)

you.

the Resource Enhancement and

= $ 1,500

Pennsylvania does not allow a

Other state’s income

Protection tax credit. If the entity

Also taxed in Pennsylvania …….. 75,000 x 3.07 percent (0.0307)

deduction for contributions made to

sells or assigns the Resource

= $ 2,302

calculate the Educational

Enhancement and Protection tax

Lesser of the two ………………… $1,500

Improvement Tax Credit. If the

credit it is reported as a gain on PA-

expenses were deducted in

20S/PA-65 Schedule D.

Line 6

calculating federal-taxable income,

Organ and Bone Marrow

the amount should be reported as a

Line 9

Donor Tax Credit

reduction in expenses on PA-20S/PA-

Neighborhood Assistance

65 Schedule M, Section E, Line f. Do

Although no new tax credits are

Program Tax Credit

not reduce Pennsylvania-taxable

being issued, the carry forward of

income by amounts paid to qualify

Enter the amount of tax credit from

unused tax credits is allowed. Enter

for the tax credit.

the Pennsylvania Department of

the amount of any carry forward of

Community and Economic

unused tax credit.

Line 12

Development certification sent to

you.

Line 7

Total Pennsylvania Other

If the entity has corporate tax

Keystone Innovation Zone

Credits

liability for the tax year in which the

Tax Credit

Add Lines 1 through 11. Enter the

Neighborhood Assistance Program

total credits here and on the PA-

Enter the amount of tax credit from

tax credit is approved for use, the

20S/PA-65 Information Return, Part

the Pennsylvania Department of

tax credit must be first applied to the

V, Line 13a.

Community and Economic

corporate tax liability before it is

Development certification sent to

passed through to the entity’s

you.

owners.

If the entity has corporate tax

Consequently if the entity has

liability for the tax year in which the

corporation tax liability, the amount

Keystone Innovative Zone tax credit

of credit reported on Line 9 must be

is approved for use, the tax credit

less the corporate tax liability.

must be first applied to the corporate

Pennsylvania does not allow a

tax liability before it is passed

deduction for contributions made to

through to the entity’s owners.

calculate the Neighborhood

Consequently if the entity has

Assistance Program Tax Credit. If the

corporation tax liability, the amount

expenses were deducted in

of credit reported on Line 7 must be

calculating federal-taxable income,

less the corporate tax liability.

the amount should be reported as a

Pennsylvania does not require a

reduction in expenses on PA-20S/PA-

reduction in expenses to calculate

65 Schedule M, Section E, Line f. Do

the KIZ tax credit. If the entity sells

not reduce Pennsylvania-taxable

or assigns the KIZ tax credit it is

income by amounts paid to qualify

reported as a gain on PA-20S/PA-65

for the tax credit.

Schedule D.

If the entity sells or assigns the

Neighborhood Assistance Program

Tax Credit it is reported as a gain on

PA-20S/PA-65 Schedule D.

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

Instructions For Form Pa-20s/pa-65 - Schedule Oc - Other Credits - 2011 Page 8

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