- Does my company pay any of the taxes eligible for the tax credit program?
- How much do I want to commit to this program?
- Fill out the simple one page application form and submit the form to the Pennsylvania Department of Community and Economic Development (PA DCED) at:
Mail: Department of Community & Economic Development
Tax Credit Division, 4th Floor
Commonwealth Keystone Building
400 North Street
Harrisburg, PA 17120
Fax: (717)772-3581
- Wait for an approval response from PA DCED.
- If you are an S-corporation, LLC or Partnership (Pass-through Entity) - decide how you would like you credit applied to you tax liability in the following in one of the three following ways.
A. The Pass-through Entity can elect to apply the entire tax credit to the shareholders/members’ Personal Income tax in the year of contribution. DOR is working on a form for this option. In the meantime, please submit a letter explaining that this is the option that the Pass-through Entity chooses. The letter should:
i. be on company letterhead
ii. indicate that the Pass-through Entity’s choice is to transfer the entire credit to the entity’s shareholders/members
iii. specify the amount of the credit to be transferred to each shareholder/member based on the income interest of each shareholder/member
iv. be signed by each shareholder/member.
B. The Pass-through Entity. can also elect to utilize part of the credit through the entity (ex: Capital Stock and Franchise Tax) and to transfer the remaining credit to the members/shareholders to their Personal Income Tax for the year of contribution. DOR is working on a form for this option, as well. In the meantime submit a letter explaining that this is the option that the Pass-through Entity chooses. The letter should:
i. be on company letterhead
ii. indicate that the option selected
iii. specify the amount of the credit that will be applied at the entity level.
iv. specify the amount to be transferred to each shareholder/member based on the income interest of each shareholder/member
v. be signed by each shareholder/member.
C. In absence of indicating either option, credit will be applied to the taxes of the entity (ex: Capital Stock and Franchise Tax) for the tax year in which the contribution is made. Any credit not utilized at the entity level may then be transferred to the S Corp shareholders or LLC members, to be applied to their PIT for the year following the year of contribution. The Department will be publishing instructions concerning the form of notice to be submitted in order to transfer credit not used at the entity level.
Address all election letters to:
Commonwealth of Pennsylvania
Department of Revenue
Bureau of Corporation Taxes
Dept. 280701
Harrisburg, PA 17128-0701
Attn: Thomas Bordner
- Once approved you can now select your approved Pennsylvania approved organization to make your donation. Your donation must be made within 60 days of the date on the approval letter.
- Once you have made your donation to your charity you should receive a notification from the charity that the donation has been received, this typically comes in the form of a thank you letter. It is very important that you receive this from the charity. This notification must be submitted to PA DCED within 90 days from the date of the approval letter.
For more information, please contact:
Brian Gallagher, MT, CPA
Managing Member
P: 484-395-2201
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