Industry Alert: Status of PA EITC Credits

The Pennsylvania Department of Community and Economic Development confirmed this morning that it has released conditional EITC approval letters. Jim O’Donnell, Executive Director of DCED Tax Credits Division, confirmed that the approval letters were sent to applicants who qualified for the early application filing period between May 15 and July 1, 2015.  Unfortunately, applicants cannot confirm the approval of their application online, as the online login is not operational.

If you are in the second year of a two year commitment or have completed a two year commitment and submitted an application for a second, two year commitment, AND filed your application between May 15 and July 1, 2015, you should be receiving a conditional letter of approval from DCED.  In the meantime, if you have not received your letter from DCED, you should assume that the full amount of the credit requested in your application has been conditionally approved, pending passage of the final 2015-2016 Pennsylvania budget.  The Department cannot provide you with final approval at this time, since the final budget has not been enacted.  Once the final budget is enacted, the Department will contact you with the amount of the final credit, so as to permit you to take the credit.

Applications filed on July 1, 2015 or later have been wait listed and the DCED will not be sending conditional approval letters to these applicants.

To ensure that you receive your 2015 state tax credit and federal tax benefit, you must make sure that your check is dated no later than December 31, 2015.

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If you have any questions or comments about this topic, please contact Tom Frascella, Director, Tax Strategies, at Email or 215-441-4600.

Information contained in this alert should not be construed as the rendering of specific accounting, tax, or other advice. Material may become outdated and anyone using this should research and update to ensure accuracy. In no event will the publisher be liable for any damages, direct, indirect, or consequential, claimed to result from use of the material contained in this alert. Readers are encouraged to consult with their advisors before making any decisions.