Tax Credits and Programs
This tax credit is now available to businesses and individuals performing qualified research in Pennsylvania, to encourage businesses in the commonwealth to conduct research.
All applications must be submitted by December 1.
Tax questions on credits previously awarded within the program or credits obtained via sale or assignment may be directed to the Department of Revenue at 717-772-3896 or ra-rvtaxcredits@pa.gov.
The online application for the Research and Development Tax Credit has moved to myPATH, the Department of Revenue’s online filing system.
For more information, visit the R&D Tax Credit Program webpage.
The Mixed-Use Development Tax Credit program, administered by the Pennsylvania Housing Finance Agency, authorizes the Agency to sell $4.5 million of state tax credits to qualified taxpayers for the purpose of establishing a Mixed-Use Development Fund. Distributions from the fund will be awarded to eligible construction or rehabilitation projects in the Commonwealth.
Bids are currently being accepted for the purchase of mixed-use development tax credits. The deadline for bids is 2 p.m. on Friday, July 19, 2024.
For more information, visit the Pennsylvania Housing Finance Agency website (www.phfa.org) or call the PHFA at 717-780-1867. Tax questions may be directed to the Department of Revenue at 717-772-3896 or ra-rvtaxcredits@pa.gov.
A taxpayer that is a manufacturer of malt or brewed beverages may submit an application for tax credits against the malt beverage tax imposed under Article XX of the Tax Reform Code for investment in qualified capital expenditures. Applications for qualifying capital expenditures placed into service in Pennsylvania between January 1, 2023 and December 31, 2023 or within one year of the date of the original purchase submitted prior to April 1, 2024.
For more information and to apply for a Malt Beverage Tax Credit, please refer to the:
Malt Beverage Tax Credit Program Guidelines and Application
Informational Notice – Miscellaneous Tax 2018-01 – Malt Beverage Tax Credit Program
Frequently Asked Questions - Malt Beverage Tax Credit Program
Qualifying Capital Expenditures Worksheet
Tax questions may be directed to the Department of Revenue at 717-772-3896 or ra-rvtaxcredits@pa.gov.
The Educational Tax Credits program contains two sections of which credits may be awarded for applicants within the program.
The Educational Improvement Tax Credit (EITC) is available to eligible businesses that contribute to scholarship organizations (including pre-kindergarten) and educational improvement organizations, in order to promote expanded educational opportunities for students in Pennsylvania. The Program Guidelines provide more information. For more information on EITC review the Program Guidelines.
The Opportunity Scholarship Tax Credit (OSTC) is available to eligible businesses that contribute to IRC 501C opportunity scholarship organizations approved by the Department of Community and Economic Development. Opportunity Scholarship Organizations can provide scholarships to eligible students living within the boundary of the lowest-achieving 15 percent of elementary and lowest-achieving 15 percent of secondary schools as published by the Department of Education. For more information on OSTC review the Program Guidelines.
To speak with a representative of the program, please contact the Department of Community and Economic Development at 1-800-379-7448. Tax questions may be directed to the Department of Revenue at 717-772-3896 or ra-rvtaxcredits@pa.gov.
To make an irrevocable election to pass-through an EITC to partners, members or shareholders, a business must complete form: REV-1123. The completed REV-1123 may be emailed to the Department of Revenue at REV1123@pa.gov. A separate election must be completed for each year the credit is awarded and not used in whole or in part.
Informational Notice - Miscellaneous Tax 2015-01 -- Education Tax Credits
Restricted Tax Credit Bulletin 2021-01 - Limited Carryforward of Education Tax Credits
The KIZ Program creates geographic zones to foster innovation and entrepreneurial opportunities by aligning the combined resources of educational institutions and the private sector.
For more information, review the Program Guidelines or call the Department of Community and Economic Development’s Customer Service Center at 1-800-379-7448. Tax questions may be directed to the Department of Revenue at 717-772-3896 or ra-rvtaxcredits@pa.gov.
The Keystone Special Development Zone (KSDZ) is an incentive-based tax credit program to foster the redevelopment of abandoned, deteriorated commercial and industrial sites. Eligible businesses that are established within and/or relocate to a KSDZ have the opportunity to earn restricted tax credits in exchange for job creation within the zone.
For more information, visit the program website (https://dced.pa.gov/programs/keystone-special-development-zone-ksdz) or call the Department of Community and Economic Development’s Customer Service Center at 1-800-379-7448.
KSDZ Employment Record Worksheet
Tax questions may be directed to the Department of Revenue at 717-772-3896 or ra-rvtaxcredits@pa.gov.
This program will provide tax credits for qualified taxpayers to rehabilitate a qualified historic structure that is approved by the PA Historical & Museum Commission.
For more information, review the Program Guidelines, or call the Department of Community and Economic Development’s Customer Service Center at 1-800-379-7448. Tax questions may be directed to the Department of Revenue at 717-772-3896 or ra-rvtaxcredits@pa.gov.
This tax credit program was available to businesses approved within the program that agreed to create new jobs within Pennsylvania. The program is no longer accepting applications, as the sunset date was June 30, 2019.
Tax questions, for utilization of credits, may be directed to the Department of Revenue at 717-772-3896 or ra-rvtaxcredits@pa.gov.
This program encourages taxpayers to contribute to neighborhood organizations and charitable food programs and engage in activities that promote community economic development in impoverished areas.
For more information, review the Program Guidelines, or call the Department of Community and Economic Development’s Customer Service Center at 1-800-379-7448. Tax questions may be directed to the Department of Revenue at 717-772-3896 or ra-rvtaxcredits@pa.gov
This program provides a tax credit to farmers and businesses that invest in the implementation of best management practices in agricultural operations to enhance farm production and protect natural resources.
For more information or to apply for a Resource Enhancement and Protection Tax Credit, visit the Department of Agriculture’s webpage: https://www.agriculture.pa.gov/Plants_Land_Water/StateConservationCommission/REAP or call 717-787-8821. Tax questions may be directed to the Department of Revenue at 717-772-3896 or ra-rvtaxcredits@pa.gov.
The Entertainment Production Tax Credit program contains two areas of which credits may be awarded for applicants within the program: Film Production Tax Credit and Video Game Production Tax Credit.
The Film Production tax credit was established to create a film industry within the Commonwealth to attract the production of films, television commercials or television shows for a national audience. For more information on the program, review the Program Guidelines.
The Video Game Production tax credit was established to create attract the video game industry to the Commonwealth for the production of video games. For more information on the program, review https://dced.pa.gov/programs/film-tax-credit-program.
Film Tax Credit Employer Withholding Requirements
The Department of Community and Economic Development has more information online or call the DCED Customer Service Center at 1-800-379-7448. Tax questions may be directed to the Department of Revenue at 717-772-3896 or ra-rvtaxcredits@pa.gov.
The Entertainment Economic Enhancement Program was established to attract investment in the commonwealth by awarding tax credits to tour operators representing musicians for rehearsals and live musical performances within the state. For more information on the program, review the Program Guidelines.
The Department of Community and Economic Development has more information online or call the DCED Customer Service Center at 1-800-379-7448. Tax questions may be directed to the Department of Revenue at 717-772-3896 or ra-rvtaxcredits@pa.gov.
Beginning in 2017, any manufacturer purchasing natural gas containing ethane as a petrochemical feedstock at a facility within the Commonwealth could be eligible for a PRM Tax Credit equal to five cents per gallon ($2.10 per barrel) of ethane purchased and used in manufacturing ethylene, so long as the company makes a capital investment of at least $1 billion and creates the equivalent of at least 2,500 full-time jobs while constructing the manufacturing facility. Effective for ethane purchased between Jan. 1, 2017 and Dec. 31, 2042.
This program provides a powerful incentive that will revitalize Pennsylvania’s manufacturing industry, create thousands of good-paying Pennsylvania jobs and secure long-term economic benefits for Pennsylvania residents and communities.
For more information and to apply for the Pennsylvania Resource Manufacturing Tax Credit, contact the Department of Revenue’s Office of Economic Development at 717-772-3896 or ra-rvtaxcredits@pa.gov.
The Coal Refuse Energy and Reclamation Tax Credit provides tax credits to eligible facilities which generate electricity by using coal refuse for power generation, control acid gases for emission control, and use ash produced by the facilities to reclaim mining-affected sites.
For more information, review the Program Guidelines or call the Department of Community and Economic Development’s Customer Service Center at 1-800-379-7448. Tax questions may be directed to the Department of Revenue at 717-772-3896 or ra-rvtaxcredits@pa.gov.
Special rules apply for taxpayer’s that sell/assign restricted credits. For specific information regarding these rules, review Tax Bulletin 2024-01.
Effective immediately, entities that are no longer subject to filing the RCT-101 Corporate Tax Report as per the phase out of the Capital Stock & Foreign Franchise Tax are required to file the PA- 20S/PA-65, S Corporation/Partnership Information return prior to selling a restricted credit. Every domestic or foreign PA S corporation (72 P.S. § 7330.1), partnership (72 P.S § 7335(c)), or entity formed as a limited liability company that is classified as a partnership or S corporation for federal income tax purposes, must file the PA- 20S/PA-65 Information Return. Single Member Limited Liability Companies with an individual, partnership, or corporation as the single member are required to file the specified returns: An individual as the single member, must file a PA-40 Individual Tax Return. If the single member is a corporation or partnership the return of the owner (RCT-101 Corporate Tax Report or PA 20S/65 Information Return) must be filed.
Business taxpayers and tax practitioners now have the ability to electronically request and receive a more detailed version of the Statement of Account (e-SOA) in PDF format through the new Document Center section in myPATH. The e-SOA can be requested at any time and is made available in PDF format in the Document Center to print or download on the next business day.
Logon to myPATH and request an e-SOA through the myPATH Document Center.
The Innovate in PA program was established by Act 52 of 2013. The program authorized the Pennsylvania Department of Community and Economic Development to sell $100 million of state insurance premium tax credits to insurance companies for the purpose of establishing the Innovate in PA Fund used to distribute proceeds to innovation and economic growth technology-based projects. Innovate in PA tax credits are effective against insurance premiums tax liabilities.
Tax questions may be directed to the Department of Revenue at 717-772-3896 or ra-rvtaxcredits@pa.gov.
The Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits authorized under Article XVII-L of the Tax Reform Code of 1971, as amended under Act 108 of 2022 is a collection of tax credit programs designed to attract new investment from businesses resulting in economic growth and job creation for the Commonwealth. Tax Credits for qualified taxpayers are approved by the Pennsylvania Department of Revenue.