Form RCT-101KOZ "Keystone Opportunity Zone/Strategic Development Area Form and Instructions - Calculation of Tax Credit for Corporate Net Income Tax" - Pennsylvania

What Is Form RCT-101KOZ?

This is a legal form that was released by the Pennsylvania Department of Revenue - a government authority operating within Pennsylvania. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on May 1, 2016;
  • The latest edition provided by the Pennsylvania Department of Revenue;
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Download a fillable version of Form RCT-101KOZ by clicking the link below or browse more documents and templates provided by the Pennsylvania Department of Revenue.

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Download Form RCT-101KOZ "Keystone Opportunity Zone/Strategic Development Area Form and Instructions - Calculation of Tax Credit for Corporate Net Income Tax" - Pennsylvania

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RCT-101KOZ (05-16)
BUREAU OF CORPORATION TAXES
PO BOX 280701
HARRISBURG PA 17128-0701
KEYSTONE OPPORTUNITY ZONE/
STRATEGIC DEVELOPMENT AREA
FORM AND INSTRUCTIONS
CALCULATION OF TAX CREDIT
FOR CORPORATE NET INCOME TAX
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RCT-101KOZ (05-16)
BUREAU OF CORPORATION TAXES
PO BOX 280701
HARRISBURG PA 17128-0701
KEYSTONE OPPORTUNITY ZONE/
STRATEGIC DEVELOPMENT AREA
FORM AND INSTRUCTIONS
CALCULATION OF TAX CREDIT
FOR CORPORATE NET INCOME TAX
PRINT
NEXT PAGE
SCHEDULE RCT-101 KOZ/KOEZ/KOIZ/SDA INSTRUCTIONS
To be completed by businesses subject to corporate
KOZ/KOEZ must be completed and submitted as
part of form RCT-101.
net income tax that are approved for tax benefits
under the Keystone Opportunity Zone (KOZ),
A copy of the letter from the Department of
Keystone Opportunity Expansion Zone (KOEZ),
Community and Economic Development approving
the taxpayer for benefits from one of these programs
Keystone Opportunity Improvement Zone (KOIZ) or
for the current tax year must be filed with the
Strategic Development Area (SDA) program.
RCT-101.
Important: This schedule is not to be used by
Taxpayers claiming benefits from any of these
entities involved in the operation of a railroad,
programs must check the “KOZ/EIP/SDA” Box on
truck, bus or airline company; pipeline or natural
Page 1 of the RCT-101.
gas company; or water transportation company.
Important: Beginning Jan. 1, 2009, the calculation
Business taxpayers that qualify for KOZ, KOEZ,
of the KOZ/KOEZ/KOIZ credit no longer includes the
KOIZ or SDA benefits MUST first complete the PA
sales factor. The sales factor is still included in the
Corporate Tax Report, RCT-101, without taking into
calculation of the SDA credit.
account any KOZ, KOEZ, KOIZ or SDA benefits to
Failure to provide these documents will result in a
which they might be entitled.
delay in the processing of the credit and may result
In order to calculate a tax credit to be applied against
in an assessment for underpayment of tax reported
the permitted taxes, special schedule RCT-101
on the RCT-101.
COMPLETION OF THE FORM
Indicate the applicable program from which
but the service performed outside the subzone,
KOZ/KOEZ/KOIZ or SDA benefits are claimed.
expansion subzone or SDA is incidental to the
person's service within the subzone, expansion
Property Apportionment Factor
subzone or SDA; or
Within Subzone, Expansion Subzone or SDA — The
average value of the taxpayer’s real and tangible
(C) Some of the service is performed in the subzone,
personal property owned and used in the subzone,
expansion subzone or SDA and the base of
expansion subzone or SDA plus eight times the
operations is in the subzone, expansion subzone
rental rate for real and tangible personal property
or SDA. If there is no base of operations,
rented and used in the subzone, expansion subzone
compensation is paid in the subzone, expansion
or SDA.
subzone or SDA if the place from which the
Within PA — The average value of taxpayer’s real
service is directed or controlled is in the subzone,
and tangible personal property owned and used
expansion subzone or SDA. If the place from
in PA plus eight times the rental rate for real and
which the service is directed or controlled is not
tangible personal property rented and used in PA.
in a location in which the employee’s work is
Payroll Apportionment Factor
performed, compensation is paid in the subzone,
Within Subzone, Expansion Subzone or SDA — Total
expansion subzone or SDA if the employee’s
compensation paid in the subzone, expansion
residence is within the subzone, expansion
subzone or SDA. Compensation is paid in the
subzone or SDA.
subzone, expansion subzone or SDA if:
Within PA — All compensation paid in PA.
(A) The person's service is performed entirely
within the subzone, expansion subzone or SDA;
Taxpayers claiming the KOZ/KOEZ/KOIZ credit for
tax periods beginning after Dec. 31, 2008, should
(B) The person's service is performed within and
outside the subzone, expansion subzone or SDA,
stop here and go to the Calculation of the Credit.
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Sales Apportionment Factor
different for the calculation of the credit than the
rules for sourcing these sales in the calculation of
To be completed by taxpayers approved for and
the sales factor apportionment, this may not equal
claiming the SDA Credit.
the sales reported inside PA on RCT-106.
Within SDA — Total sales in the SDA during the tax
period.
Calculation of the Credit Percentage —
KOZ/KOEZ/KOIZ
Sales of tangible personal property are in the SDA
For each apportionment factor, divide the amount
if the property is delivered or shipped to a purchaser
within the subzone or expansion subzone by the
that takes possession within the SDA, regardless of
property and payroll within PA. The results of each
the FOB point or other conditions of the sale. Sales,
calculation are carried out six places to the right of
other than sales of tangible personal property, are
the decimal. Total the property and payroll factors
in the SDA if:
and divide by two. This is your Credit Percentage.
(A) The income-producing activity is performed
in the SDA; or
Calculation of the Credit Percentage — SDA
For each apportionment factor, divide the amount
(B) The income-producing activity is performed
within the SDA by the property, payroll and sales
within and outside the SDA, and a greater
within PA. The results of each calculation are
proportion of the income-producing activity
carried out six places to the right of the decimal.
is performed in the SDA than in any other
Total the property, payroll and sales factors and
location, based on costs of performance.
divide by three. This is your Credit Percentage.
Within PA — All sales sourced to locations inside PA.
IMPORTANT: The factors are not weighted.
This includes all sales destined to locations inside
Multiply the self-assessed tax from the RCT-101 by
PA plus sales of goods picked-up by customers in
the SDA, either in their own vehicles or by common
the Credit Percentage. This is the credit amount.
Enter this amount in the “Restricted Credit” Box
carriers arranged for by the customers, and
transported to locations outside the commonwealth.
for the CNI tax on Page 1 of RCT-101, Step D,
Column C. The total credit may not exceed the
Since the sourcing of sales picked-up in the SDA
and transported outside the commonwealth is
tax liability for the period.
EXAMPLE
KOZ/KOEZ/KOIZ
SDA
Property
Property In Zone
10
Property In SDA
10
PA Property
100
=
0.100000
PA Property
100
=
0.100000
Payroll
Payroll In Zone
20
Payroll In SDA
20
PA Payroll
100
=
0.200000
PA Payroll
100
=
0.200000
Sales
Not Applicable
Sales In SDA
5
PA Sales
100
=
0.050000
Total
0.300000
0.350000
Credit
Percentage
0.300000 / 2
=
0.150000
0.350000 / 3
=
0.116667
Credit
Tax $1,000 X 0.150000
=
$ 150
Tax $1,000 X 0.116667
=
$ 117
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FILL IN FORM USING ALL CAPS.
DO NOT USE DASHES (-) OR SLASHES (/) IN ANY FIELD. ENTER DATES AS MMDDYYYY. USE WHOLE DOLLARS ONLY.
PA DEPARTMENT OF REVENUE
RCT-101KOZ (05-16)
BUREAU OF CORPORATION TAXES
START
KOZ/KOEZ/KOIZ
SDA
DO NOT USE THIS FORM IF THE CORPORATE TAXPAYER IS A TRANSPORTATION COMPANY, FINANCIAL
INSTITUTION, MUTUAL THRIFT INSTITUTION, INSURANCE COMPANY, PIPELINE AND NATURAL GAS
COMPANY, REGULATED INVESTMENT COMPANY OR A HOLDING COMPANY AS DEFINED IN ARTICLE VI OF THE
TAX REFORM CODE.
The calculation of the tax credits must be in accordance with the attached instructions.
CORPORATION NAME
MMDDYYYY
MMDDYYYY
REVENUE ID
TAX YEAR BEGINNING
TAX YEAR ENDING
PROPERTY
If number before the decimal is 0, enter fractional part after decimal.
Within Subzone,
If number before decimal is 1, enter 000000 after decimal.
Expansion Subzone or SDA
=
=
.
Within PA
PAYROLL
If number before the decimal is 0, enter fractional part after decimal.
Within Subzone,
If number before decimal is 1, enter 000000 after decimal.
Expansion Subzone or SDA
=
=
.
Within PA
Taxpayers claiming the KOZ/KOEZ/KOIZ credit for tax periods beginning after Dec. 31, 2008, should stop here and go
to the Calculation of the Credit.
SALES
To be completed by taxpayers approved for and claiming the SDA Credit.
If number before the decimal is 0, enter fractional part after decimal.
If number before decimal is 1, enter 000000 after decimal.
Within SDA
=
=
.
Within PA
If number before the decimal is 0, enter fractional part after decimal.
If number before decimal is 3, enter 000000 after decimal.
TOTAL
.
If number before the decimal is 0, enter fractional part after decimal.
If number before decimal is 1, enter 000000 after decimal.
TOTAL
.
÷
=
CREDIT PERCENTAGE
.
Corporate Net Income Tax
Self-Assessed Tax
.
Credit Percentage X
Conditional Tax Credit =
Carry the conditional tax credit to the first page of RCT-101, Step D, Column C for corporate net income tax. The total credit
may not exceed the tax liability for the period.
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