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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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SCHEDULE RCT-101 KOZ/KOEZ/KOIZ/SDA INSTRUCTIONS
To be completed by businesses subject to corporate KOZ/KOEZ must be completed and submitted as
net income tax that are approved for tax benefits part of form RCT-101.
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
Keystone Opportunity Improvement Zone (KOIZ) or the taxpayer for benefits from one of these programs
Strategic Development Area (SDA) program. for the current tax year must be filed with the
RCT-101.
Important: This schedule is not to be used by
entities involved in the operation of a railroad, Taxpayers claiming benefits from any of these
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
Property Apportionment Factor person's service within the subzone, expansion
Within Subzone, Expansion Subzone or SDA — The subzone or SDA; or
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, expansion subzone or SDA if: subzone or SDA.
(A) The person's service is performed entirely Within PA — All compensation paid in PA.
within the subzone, expansion subzone or SDA; Taxpayers claiming the KOZ/KOEZ/KOIZ credit for
(B) The person's service is performed within and tax periods beginning after Dec. 31, 2008, should
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
To be completed by taxpayers approved for and rules for sourcing these sales in the calculation of
claiming the SDA Credit. the sales factor apportionment, this may not equal
the sales reported inside PA on RCT-106.
Within SDA — Total sales in the SDA during the tax
period. Calculation of the Credit Percentage —
Sales of tangible personal property are in the SDA KOZ/KOEZ/KOIZ
if the property is delivered or shipped to a purchaser For each apportionment factor, divide the amount
that takes possession within the SDA, regardless of within the subzone or expansion subzone by the
the FOB point or other conditions of the sale. Sales, property and payroll within PA. The results of each
other than sales of tangible personal property, are calculation are carried out six places to the right of
in the SDA if: the decimal. Total the property and payroll factors
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
(B) The income-producing activity is performed For each apportionment factor, divide the amount
within and outside the SDA, and a greater within the SDA by the property, payroll and sales
proportion of the income-producing activity within PA. The results of each calculation are
is performed in the SDA than in any other carried out six places to the right of the decimal.
location, based on costs of performance. Total the property, payroll and sales factors and
divide by three. This is your Credit Percentage.
Within PA — All sales sourced to locations inside PA.
This includes all sales destined to locations inside IMPORTANT: The factors are not weighted.
PA plus sales of goods picked-up by customers in Multiply the self-assessed tax from the RCT-101 by
the SDA, either in their own vehicles or by common the Credit Percentage. This is the credit amount.
carriers arranged for by the customers, and Enter this amount in the “Restricted Credit” Box
transported to locations outside the commonwealth. for the CNI tax on Page 1 of RCT-101, Step D,
Since the sourcing of sales picked-up in the SDA Column C. The total credit may not exceed the
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.
RCT-101KOZ (05-16)
PA DEPARTMENT OF REVENUE
BUREAU OF CORPORATION TAXES
START
Ü 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
Within Subzone, If number before the decimal is 0, enter fractional part after decimal.
If number before decimal is 1, enter 000000 after decimal.
Expansion Subzone or SDA
= = .
Within PA
PAYROLL
Within Subzone, If number before the decimal is 0, enter fractional part after decimal.
Expansion Subzone or SDA If number before decimal is 1, enter 000000 after decimal.
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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