Fillable Form 2019: PA SCHEDULE OC 1908310053 Other Credits (Pennsylvania)

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Form 2019: PA SCHEDULE OC 1908310053 Other Credits (Pennsylvania)

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OFFICIAL USE ONLY
FEIN
Name as shown on the PA-20S/PA-65 Information Return
PA SCHEDULE OC
Other Credits
PA-20S/PA-65 OC (PT) 09-19
PA Department of Revenue
2019
You must submit the certificate or notification that approved each credit you are claiming.
1 PA Employment Incentive Payments Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 PA Job Creation Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3 PA Research and Development Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 PA Film Production Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Entertainment Economic Enhancement Program Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Video Game Production Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 PA Organ and Bone Marrow Donor Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
8 PA Keystone Innovation Zone (KIZ) Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
9 PA Resource Enhancement and Protection (REAP) Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . 9
10 PA Neighborhood Assistance Program (NAP) Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
11 PA Educational Improvement Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
12 PA Opportunity Scholarship Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
13 PA Keystone Special Development Zone Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
14 PA Historic Preservation Incentive Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
15 Coal Refuse Energy and Reclamation Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
16 Mixed Use Development Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
17 Waterfront Development Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
18 Manufacturing and Investment Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
19 Other restricted credits not listed above. Enter type: 19
20 Out-of-State Credits – S Corporation Only . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
21 Total PA Other Credits. Add Lines 1 through 20 and enter total here . . . . . . . . . . . . . . . . . . . . 21
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1PA-20S/PA-65 OCwww.revenue.pa.gov
PURPOSE OF SCHEDULE
A PA S corporation, partnership and limited liability company
filing as a partnership or PA S corporation for federal income
tax purposes uses PA-20S/PA-65 Schedule OC to enter its
share for each tax credit received after applying the tax
credit to the entity’s corporate liability, if any.
A tax credit passed through from another entity can only be
applied to tax liability resulting from the RCT-101, PA Cor-
porate Tax Report. Do not report a tax credit passed through
from another entity on PA-20S/PA-65 Schedule OC with the
exception of EITC and OSTC.
REDUCTION IN EXPENSES
Pennsylvania does not allow the deduction of certain
expenses used to qualify for the Neighborhood Assistance
Program and the Educational Improvement Tax Credits. If
the expenses were deducted in calculating federal-taxable
income, the amount should be reported as a reduction in
expenses on PA-20S/PA-65 Schedule M, Part II, Section V,
Line f. Do not reduce Pennsylvania-taxable income by
amounts paid to qualify for the tax credit.
TAX CREDITS CLAIMED ON SCHEDULE OC
For each tax credit claimed, the entity must submit with the
PA-20S/PA-65 Schedule OC, the tax credit certificate or
award notification for each tax credit claimed.
The following is some general information regarding tax
credits:
● The restricted tax credits on PA-20S/PA-65 Schedule
OC may be passed through to the taxpayer/owner and
claimed against the tax liability for a taxpayer/owner
without restriction as to the type or class of income
included in determining the tax liability of the taxpayer/
owner.
● Restricted tax credits are nonrefundable. If applicable,
other nonrefundable credits must be applied to the
account before restricted tax credits.
● The request to pass through tax credit to an entity owner
is irrevocable. Therefore, the entity should not pass
through more than the owner can use in any single year.
● Tax credits passed through from pass through entities
to other pass through entities may not be passed
through to owners or beneficiaries with the exception of
EITC and OSTC.
● Tax credits passed from a QSSS or disregarded entity
to its parent, cannot be further passed to the parent’s
owners.
PASSING THROUGH TAX CREDIT TO ENTITY OWNERS
Prior to passing tax credits through to entity owners, some
tax credits must first be applied to the entity’s corporate tax
liability, if any, for the year in which the tax credit is granted.
If the entity has a tax liability for the tax year in which the
credit is approved for use, the tax credit must first be applied
to that tax liability. Review the specific information for each
tax credit to determine if the tax credit must first be applied
to corporate liability.
If an entity does not use all approved tax credits, it may elect
in writing to pass through all or a portion of the tax credit to
owners, in proportion to the share of the entity’s distributive
income to which the owner is entitled. In most cases, the tax
credit may be applied up to the full amount of owners’ tax
liabilities, minus any other nonrefundable credits that are
applied first.
An owner of a pass through entity to which a tax credit is
transferred must immediately claim the tax credit in the tax
year in which the transfer is made. The owner may not carry
forward, carry back, obtain a refund of, sell, assign or pass
through the tax credit again.
Married couples with joint ownership in pass through entities
must be separately listed on the entities’ pass through of
credit request in order for credit to be applied to each indi-
vidual’s tax number.
NOTE: Exceptions to this rule apply for the EITC and
OSTC tax credits.
Example. A taxpayer and spouse jointly own a 50 percent
interest in a partnership, and their son John owns the other
50 percent. All income is distributed according to the owner-
ship percentages. The request to pass through a credit must
separately list the taxpayer and spouse’s tax numbers, each
receiving 25 percent of the credit, and John receiving the
remaining 50 percent under his tax number. This method
must be followed even though the taxpayer and spouse do
not receive a separate RK-1 or NRK-1 from the partnership.
To pass through tax credits to owners, an entity must submit
the claim form, located on the reverse side of the award
letter to the Department of Revenue or provide a request
on entity letterhead, listing the total amount of credit to be
distributed to the entity owner(s), the name and address of
each owner, amount of tax credit to be passed through to
each owner, tax year, tax type and owner’s tax identification
number.
The statement must be signed by an authorized represen-
tative of the entity, and should be submitted before owners
file their individual tax returns.
The claim form or request letter must be mailed to:
PA DEPARTMENT OF REVENUE
BUREAU OF CORPORATION TAXES
PO BOX 280701
HARRISBURG PA 17128-0701
GENERAL INFORMATION
Pennsylvania Department of Revenue 2019
Instructions for PA-20S/PA-65 Schedule OC
Other Credits
PA-20S/PA-65 OC IN (PT) 09-19
2 PA-20S/PA-65 OC www.revenue.pa.gov
To pass through an Educational Improvement Tax Credit or
Opportunity Scholarship Tax Credit, the taxpayer must com-
plete and submit form REV-1123, Educational Improvement
Tax Credit Election Form.
The REV-1123 must be mailed to:
PA DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXES
PO BOX 280604
HARRISBURG PA 17128-0604
For general information pertaining to all restricted tax credits
as well as specific details regarding each tax credit individ-
ually – including each tax credit’s carry-forward and pass
through rules, applications and guidelines – review the PA
Personal Income Tax Guide – Deductions and Credits.
All tax questions, regarding utilization of the credits claimed
on the Schedule OC should be directed to the Department
of Revenue at 717-772-3896.
BUSINESS NAME
Enter the complete name of the entity or business as shown
on the PA-20S/PA-65 Information Return.
FEIN
Enter the nine-digit federal employer identification number
(FEIN) of the entity or business as shown on the PA-20S/
PA-65 Information Return.
EMPLOYMENT INCENTIVE PAYMENTS (EIP) CREDIT
The EIP tax credit expired December 31, 2009. Although no
new tax credits are being issued, carry forward of unused
tax credits are allowed for 10 years.
This tax credit is limited to 90 percent of a business’ total tax
liability in any given year. An employer claims the tax credit
by submitting the certification received from the Department
of Labor and Industry for each employee hired and the PA
Schedule W with the appropriate Pennsylvania tax return.
JOB CREATION TAX CREDIT
The taxpayer must claim this tax credit within 5 years of the
effective date on the certificate issued by the Department of
Community and Economic Development.
The entity awarded the credit decides if the tax credit will be
applied towards corporation tax and/or passed through to its
partners, shareholders or members.
RESEARCH AND DEVELOPMENT (R&D) TAX CREDIT
The taxpayer must claim this tax credit within 15 years of the
effective date on the certificate issued by the Department of
Revenue.
• The tax credit must be first applied to the entity’s corpo-
rate tax liability, if any, for the year in which the tax credit
is awarded before the credit can be passed through to
the entity’s partners, shareholders or members.
• As of January 1, 2005, the R&D tax credit can be applied
to 100 percent of the recipient’s liability. However, any
R&D tax credit issued before 2005 may only be applied
to 50 percent of the tax liability.
• Any R&D tax credit issued before 2006 could be passed
through and then carried over if not completely used in
the year the tax credit was passed through. However,
any R&D tax credit issued after December 31, 2005, that
is passed through must be used in the year the credit is
passed through.
FILM PRODUCTION TAX CREDIT
The Taxpayer must claim the tax credit within 3 years of the
effective date on the certificate issued by the Department of
Community and Economic Development.
The tax credit must first be applied to the entity’s corporate
tax liability, if any, for the year in which the tax credit is
awarded before the credit can be passed through to the
entity’s partners, shareholders or members.
ENTERTAINMENT ECONOMIC ENHANCEMENT
PROGRAM TAX CREDIT
The Taxpayer must claim the tax credit within 3 years of the
effective date on the certificate issued by the Department of
Community and Economic Development.
The tax credit must first be applied to the entity’s corporate
tax liability, if any, for the year in which the tax credit is
awarded before the credit can be passed through to the
entity’s partners, shareholders or members.
VIDEO GAME PRODUCTION TAX CREDIT
The Taxpayer must claim the tax credit within 3 years of the
effective date on the certificate issued by the Department of
Community and Economic Development.
The tax credit must first be applied to the entity’s corporate
tax liability, if any, for the year in which the tax credit is
awarded before the credit can be passed through to the
entity’s partners, shareholders or members.
PA ORGAN AND BONE MARROW DONOR TAX CREDIT
The taxpayer must claim this tax credit within 3 years of the
effective date on the certificate issued by the Department of
Revenue.
The entity decides if the tax credit will be applied towards
corporation tax and/or passed through to the entity’s part-
ners, shareholders or members.
KEYSTONE INNOVATION ZONE (KIZ) TAX CREDIT
The taxpayer must claim this tax credit within 5 years of the
effective date on the certificate issued by the Department of
Community and Economic Development.
COMPLETING PA SCHEDULE OC
LINE INSTRUCTIONS
LINE 1
LINE 2
LINE 3
LINE 4
LINE 5
LINE 6
LINE 7
LINE 8
3PA-20S/PA-65 OCwww.revenue.pa.gov
The tax credit must first be applied to the entity’s corporate
tax liability, if any, for the year in which the tax credit is
awarded before the credit can be passed through to the
entity’s partners, shareholders or members.
RESOURCE ENHANCEMENT AND PROTECTION
(REAP) TAX CREDIT
The taxpayer must claim this tax credit within 15 years of the
effective date on the certificate issued by the Department of
Revenue.
The tax credit must first be applied to the entity’s corporate
tax liability, if any, for the year in which the tax credit is
awarded before the credit can be passed through to the
entity’s partners, shareholders or members.
NEIGHBORHOOD ASSISTANCE PROGRAM (NAP)
TAX CREDIT
The taxpayer must claim this tax credit within 5 years of the
effective date on the certificate issued by the Department of
Community and Economic Development.
• The tax credit must first be applied to the entity’s
corporate tax liability, if any, for the year in which the
tax credit is awarded before the credit can be passed
through to the entity’s partners, shareholders or members.
• Pennsylvania does not allow the deduction of certain
expenses used to qualify for the Neighborhood Assis-
tance Program tax credit. If the expenses were deducted
in calculating federal-taxable income, the amount
should be reported as a reduction in expenses on PA-
20S/PA-65 Schedule M, Part II, Section V, Line f. Do
not reduce Pennsylvania-taxable income by amounts
paid to qualify for the tax credit.
EDUCATIONAL IMPROVEMENT TAX CREDIT (EITC)
The entity decides if the tax credit will be applied towards
corporation tax and/or passed through to its partners, share-
holders or members.
• Although any unused tax credits may not be carried for-
ward, the entity may elect in writing prior to the due date
of the entity’s tax return to pass through all or a portion
of the tax credit to its owners in the taxable year of the
contribution or the taxable year immediately following
the year of contributions.
• To make an irrevocable election to pass through an
EITC or OSTC tax credit to partners, shareholders or
members, an entity should visit the Department of Rev-
enue’s website at www.revenue.pa.gov and complete
REV-1123, EITC/OSTC Tax Credit Election Form. The
entity must complete a separate REV-1123 for each
year the tax credit is awarded and not used in whole or
in part.
• Pennsylvania does not allow the deduction of certain
expenses used to qualify for the Educational Improve-
ment Tax Credit. If the expenses were deducted in cal-
culating federal-taxable income, the amount should be
reported as a reduction in expenses on PA-20S/PA-65
Schedule M, Part II, Section V, Line f. Do not reduce
Pennsylvania-taxable income by amounts paid to
qualify for the tax credit.
OPPORTUNITY SCHOLARSHIP TAX CREDIT (OSTC)
The entity decides if the tax credit will be applied towards
corporation tax and/or passed through to its partners, share-
holders or members.
• Although any unused tax credits may not be carried for-
ward, the entity may elect in writing prior to the due date
of the entity’s tax return to pass through all or a portion
of the tax credit to its owners in the taxable year of the
contribution or the taxable year immediately following
the year of contributions.
• To make an irrevocable election to pass through an
EITC or OSTC tax credit to partners, shareholders or
members, an entity should visit the Department of Rev-
enue’s website at www.revenue.pa.gov and complete
REV-1123, EITC/OSTC Tax Credit Election Form. The
entity must complete a separate REV-1123 for each
year the tax credit is awarded and not used in whole or
in part.
• Pennsylvania does not allow the deduction of certain
expenses used to qualify for the Educational Improve-
ment Tax Credit. If the expenses were deducted in cal-
culating federal-taxable income, the amount should be
reported as a reduction in expenses on PA-20S/PA-65
Schedule M, Part II, Section V, Line f. Do not reduce
Pennsylvania-taxable income by amounts paid to
qualify for the tax credit.
KEYSTONE SPECIAL DEVELOPMENT ZONE
TAX CREDIT
The taxpayer must claim this tax credit within 10 years of the
effective date on the certificate issued by the Department of
Community and Economic Development.
The entity decides if the tax credit will be applied toward
corporation tax and/or passed through to the entity’s part-
ners, shareholders or members.
HISTORIC PRESERVATION INCENTIVE TAX CREDIT
The taxpayer must claim this credit within 10 years of the
effective date on the certificate issued by the Department of
Community and Economic Development.
The tax credit must first be applied to the entity’s tax liability,
if any, for the year in which the building is placed into service
before it can be passed through to its partners, shareholders
or members.
COAL REFUSE ENERGY AND RECLAMATION
TAX CREDIT
The taxpayer must claim this tax credit within 15 years of the
effective date on the certificate issued by the Department of
Community and Economic Development.
LINE 9
LINE 10
LINE 11
LINE 12
LINE 13
LINE 14
LINE 15
4 PA-20S/PA-65 OC www.revenue.pa.gov
The entity decides if the tax credit will be applied towards
corporation tax and/or passed through to its partners, share-
holders or members.
MIXED USE DEVELOPMENT TAX CREDIT
The taxpayer must claim this tax credit within 7 years of the
effective date on the certificate issued by the Pennsylvania
Housing Finance Agency.
The entity decides if the tax credit will be applied towards
corporation tax and/or passed through to its partners, share-
holders or members.
WATERFRONT DEVELOPMENT TAX CREDIT
The taxpayer must claim this tax credit within 5 years of the
effective date on the certificate issued by the Department of
Community and Economic Development.
The entity decides if the tax credit will be applied toward
corporation tax and/or passed through to the entity’s part-
ners, shareholders or members.
MANUFACTURING AND INVESTMENT TAX CREDIT
The taxpayer must claim this tax credit within 3 years of the
effective date on the certificate issued by the Department of
Community and Economic Development.
The entity decides if the tax credit will be applied towards
corporation tax and/or passed through to its partners, share-
holders or members.
OTHER RESTRICTED CREDITS NOT LISTED ABOVE
OUT-OF-STATE CREDITS S CORPORATIONS ONLY
Certain S corporations are not taxed as S corporations
(taxed as a C corporation) in other states. In such cases an
entity must account for taxes paid to other states in order to
claim the correct resident tax credit. Note a C corporation
return must be submitted.
Do not use Line 20 to report a resident credit for an Entity
Level Tax. Certain states have imposed an entity level tax
(ELT) on pass-through entities resulting from the Federal Tax
Cut and Jobs Act (P.L. No: 115-97). Please see Answer ID
3618 (https://revenue-pa.custhelp.com/app/answers/detail/
a_id/3618/kw/3618) on the Department’s website for addi-
tional information and clarification.
Only Pennsylvania resident shareholders can claim
credit for taxes paid to other states by the entity.
To calculate the amount of Pennsylvania resident credit,
multiply the amount of income apportioned to the other state
by the Pennsylvania personal income tax rate of 3.07 per-
cent. The credit is the lesser of this calculated amount or the
actual amount of tax paid to the other state.
The C corporation from another state that is an S corporation
for Pennsylvania reports on Line 5 the lesser of the amount
of tax paid on the apportioned income as compared to the
tax rate of Pennsylvania.
The entity then distributes the amount reported on Line 5
according to ownership percentage.
The amount of credit reported on Line 5 is $1,500 because
it is less than the amount of tax payable to Pennsylvania.
NOTE: Resident shareholders report this credit on
their PA-40 Personal Income Tax Return, as a resident
credit on PA-40 Schedule G-L.
TOTAL PENNSYLVANIA OTHER CREDITS
Add Lines 1 through 20. Enter the total credits here and on
the PA-20S/PA-65 Information Return, Section V, Line 13a.
LINE 16
LINE 17
LINE 18
LINE 19
LINE 20
LINE 21
EXAMPLE
Total income from everywhere. . $100,000
PA-source income . . . . . . . . . . . . . 25,000
Other state’s income . . . . . . . . . . . . 75,000 x 2.00 percent (0.0200)
= $ 1,500
Other state’s income
Also taxed in Pennsylvania . . . . . . . 75,000 x 3.07 percent (0.0307)
= $ 2,302
Lesser of the two. . . . . . . . . . . . . . . $1,500
5PA-20S/PA-65 OCwww.revenue.pa.gov
Department of Community and
Economic Development
(800) 379-7448
www.dced.pa.gov
Department of Labor and Industry
(717) 787-5279
www.dli.pa.gov
PA Department of Revenue
(717) 787-1064
www.revenue.pa.gov
PA Department of Agriculture
State Conservation Committee
(717) 787-8821
www.agriculture.pa.gov
Pennsylvania Housing Finance Agency
(717) 780-7867
www.phfa.org
Contact Information
LINE
NUMBER
LINE 1 DEPT. OF LABOR AND INDUSTRYEMPLOYMENT INCENTIVE PAYMENTS TAX CREDIT
JOB CREATION TAX CREDIT
RESEARCH AND DEVELOPMENT TAX CREDIT
FILM PRODUCTION TAX CREDIT
ENTERTAINMENT ECONOMIC ENHANCEMENT
PROGRAM TAX CREDIT
VIDEO GAME PRODUCTION TAX CREDIT
ORGAN AND BONE MARROW DONOR TAX CREDIT
KEYSTONE INNOVATION ZONE TAX CREDIT
RESOURCE ENHANCEMENT AND
PROTECTION TAX CREDIT
NEIGHBORHOOD ASSISTANCE
PROGRAM TAX CREDIT
EDUCATIONAL IMPROVEMENT TAX CREDIT
OPPORTUNITY SCHOLARSHIP TAX CREDIT
KEYSTONE SPECIAL
DEVELOPMENT ZONE TAX CREDIT
HISTORIC PRESERVATION TAX CREDIT
COAL REFUSE ENERGY AND
RECLAMATION TAX CREDIT
MIXED USE DEVELOPMENT TAX CREDIT
WATERFRONT DEVELOPMENT TAX CREDIT
MANUFACTURING AND INVESTMENT TAX CREDIT
LINE 2
LINE 3
LINE 4
LINE 5
LINE 6
LINE 7
LINE 8
LINE 9
LINE 10
LINE 11
LINE 12
LINE 13
LINE 14
LINE 15
LINE 16
LINE 17
LINE 18
DEPT. OF COMMUNITY
AND ECONOMIC DEVELOPMENT
DEPT. OF REVENUE
DEPT. OF COMMUNITY
AND ECONOMIC DEVELOPMENT
DEPT. OF COMMUNITY
AND ECONOMIC DEVELOPMENT
DEPT. OF COMMUNITY
AND ECONOMIC DEVELOPMENT
DEPT. OF REVENUE
DEPT. OF COMMUNITY
AND ECONOMIC DEVELOPMENT
DEPT. OF REVENUE
DEPT. OF COMMUNITY
AND ECONOMIC DEVELOPMENT
DEPT. OF COMMUNITY
AND ECONOMIC DEVELOPMENT
DEPT. OF COMMUNITY
AND ECONOMIC DEVELOPMENT
DEPT. OF COMMUNITY
AND ECONOMIC DEVELOPMENT
DEPT. OF COMMUNITY
AND ECONOMIC DEVELOPMENT
DEPT. OF COMMUNITY
AND ECONOMIC DEVELOPMENT
PENNSYLVANIA HOUSING FINANCE AGENCY
DEPT. OF COMMUNITY
AND ECONOMIC DEVELOPMENT
DEPT. OF COMMUNITY
AND ECONOMIC DEVELOPMENT
TAX CREDIT PROGRAM NAME ADMINISTRATING AGENCY
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Form 2019: PA SCHEDULE OC 1908310053 Other Credits (Pennsylvania)

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