Form Rev 545Ct – Fill Out and Use This PDF

(SEE INSTRUCTIONS ON PAGES 3 AND 4 BEFORE COMPLETING.)

CITY OR TOWN, STATE AND ZIP CODE

CHECK BOX IF A SMALL BUSINESS

IF CLAIM IS AS A SMALL BUSINESS WITH TOTAL ASSETS OF LESS THAN $5 MILLION AT THE BEGINNING OR END OF THE YEAR, SUBMIT A BALANCE SHEET REFLECTING TOTAL ASSETS.

ENTER ENTITY TYPE (SEE INSTRUCTIONS ON PAGE 3.) _______________ KOZ - SEE PAGE 2.

CALCULATION OF CREDIT

1. Pennsylvania-qualified research and development (R&D) expenditures (Complete Page 2.):

			Use Whole Dollars
Tax Year Beginning	Tax Year Ending	Actual	Annualized
MM/DD/YYYY	MM/DD/YYYY
__ __/__ __/__ __ __ __	__ __/__ __/__ __ __ __	$__________________	.............................................1. $__________________
2. 50 percent of Line 1			2. $__________________
3. Prior years' Pennsylvania R&D expenditures (See instructions on Page 3.):
Tax Year Beginning	Tax Year Ending	Actual	Annualized
MM/DD/YYYY	MM/DD/YYYY
A. __ __/__ __/__ __ __ __	__ __/__ __/__ __ __ __	$__________________	A. $__________________
B. __ __/__ __/__ __ __ __	__ __/__ __/__ __ __ __	$__________________	B. $__________________
C. __ __/__ __/__ __ __ __	__ __/__ __/__ __ __ __	$__________________	C. $__________________
D. __ __/__ __/__ __ __ __	__ __/__ __/__ __ __ __	$__________________	D. $__________________

4.	Total of prior years' annualized Pennsylvania R&D expenditures (Sum of A, B, C and D)	4. $__________________
5.	Average of prior years' Pennsylvania R&D expenditures
	(Line 4 divided by number of base years in Line 3 with R&D expenditures)	5. $__________________
6.	Line 1 minus the greater of Line 2 or Line 5	6. $__________________
7.	Tentative Pennsylvania R&D credit (Line 6 x 0.1 or 0.2 for large or small company, respectively)	7. $__________________
	SIGNATURE AND VERIFICATION

Under penalties of perjury, I declare I have examined this return, including any accompanying schedules and statements, and to the best of my knowledge and belief it is true, correct and complete. THIS FORM MUST BE SIGNED BY A CORPORATE OFFICER.

SIGNATURE OF OFFICER OF COMPANY

FAX NUMBER

DATE

					(	)
PRINT OFFICER’S NAME			TITLE		TELEPHONE NUMBER		E-MAIL ADDRESS
					(	)
NAME OF PREPARER					PREPARER’S ADDRESS
TELEPHONE NUMBER			PREPARER’S EIN OR SSN	DATE	CITY OR TOWN, STATE AND ZIP CODE
	(	)

REV-545, PAGE 1

Breakdown of R&D Expenditures by Location

PART I

		Column 1	Column 2	Column 3	Column 4
Line 1	Federal R&D Expense			$	100%
		PA-Qualified	PA Expenditure	Total Expenditure	Percent of Federal Expense
	PA Location:	Expenditure	Located in KOZ		(Percent of Line 1, Column 3)
Line 2	A	$	$	$	%
Line 3	B	$	$	$	%
Line 4	C	$	$	$	%
Line 5	D	$	$	$	%
Line 6	E	$	$	$	%
Line 7	Non-PA Expenditures			$	%
Line 8	Total	$		$	100%

PART II

PART III

REV-545, Page 2

PENNSYLVANIA RESEARCH AND DEVELOPMENT TAX CREDIT APPLICATION INSTRUCTIONS

PER ACT 7 of 1997, ACT 46 of 2003 and ACT 116 of 2006

Required information: Completed and signed Page 1 of the 2011 Research and Development Tax Credit Application, completed Page 2 of the 2011 R&D application, federal Form 6765, balance sheet for a small business and any applicable partnership information (percentage owned). This information is required even if zero credit is claimed on Line 7 of the application.

To claim the PA R&D Tax Credit, a taxpayer must have qualified Pennsylvania R&D expenses in the current tax year (Line 1) and in at least one preceding tax year (Line 3). NOTE: If PA R&D expenditures were incurred in a Keystone Opportunity Zone (KOZ), the taxpayer is not

entitled to an R&D credit.

For purposes of the PA R&D Tax Credit, a taxpayer is an entity subject to PA personal income tax, PA corporate net income tax or PA capital stock/foreign franchise tax.

Qualified R&D expenses include research expenses incurred for qualified research and development conducted within Pennsylvania, as defined in Section 41 (B) of the Internal Revenue Code of 1986.

An application for a PA R&D Tax Credit for PA R&D expenses incurred in the year ending in 2010 must be submitted by Sept. 15, 2011. A 52- 53 week filer whose year ends in the first week of January will be considered a calendar year filer.

The department will notify applicants by Dec. 15, 2011, of PA R&D Tax Credit approval. A taxpayer may apply the approved credit against his/her PA personal income tax, PA corporate net income tax or PA capital stock/foreign franchise tax liability for the tax year in which the credit is approved. The amount of credit applied to any tax liability cannot exceed 50 percent of such liability for that taxable year (the 50 percent limitation is eliminated for tax years beginning in 2005 and after). Any unused credit may be carried over to no more than the 15 succeeding taxable years. A taxpayer is not entitled to carry back, obtain a refund of or assign unused PA R&D Tax Credits (for awards made Dec. 15, 2002, and prior).

Effective for awards made Dec. 15, 2003, and after, the taxpayer can apply to the PA Department of Community and Economic Development (DCED) to sell or assign a PA R&D credit if there has been no claim of allowance filed within one year from the date the Department of Revenue approved the credit. Effective for awards made Dec. 15, 2009, and after, the taxpayer no longer has to wait one year before selling or assigning the credit. However, they can not sell or assign the credit until the tax return with the Dec. 15 award date has been filed.

To apply, visit www.newpa.com or contact DCED at 717-787-7120, 1-800-379-7448 or 400 North St., 4th Fl., Keystone Building, Harrisburg PA 17120-0225. The purchaser or assignee must use the credit in the taxable year in which the purchase or assignment is made, and the credit cannot exceed 75 percent of the tax liability for the taxable year. The purchaser or assignee may not carry over, carry forward, carry back or obtain a refund of the credit.

Effective for awards made Dec. 15, 2006, and after, pass-through entities include limited liability companies and partnerships, thus the credit can be transferred (passed-through) in writing to shareholders, members or partners in their proportionate share. The shareholder, member or partner must use the credit in the taxable year in which the transfer is made. R&D credits cannot be used against employer withholding taxes. Also effective for awards made Dec. 15, 2006, and after, the tentative credit on Line 7 is equal to 10 percent for large companies and 20 percent for small companies.

ENTITY TYPE: Complete the Entity Type on Page 1 by selecting one of the following categories:

Individual, LLC, LLP, S corporation, C corporation, Sole proprietorship

If any tax years on Line 1 or Lines 3A, 3B, 3C or 3D of Page 1 represent a period of less than a full year, (other than for full year 52-53 week filers), the amount(s) of PA R&D expenses must be annualized.

Example: Tax year beginning Jan. 1, 2007, and ending July 31, 2007

Annualized amount = $1,000,000 x 365* = $1,721,698 212

*Use 366 for leap years that include 29 days in February.

If the taxpayer has two or more consecutive short periods that equal one full tax year, the short periods should be combined as a single tax year on Line 3 of Page 1.

If any prior-year PA expenditure has been changed for a specific year(s) as reported on this PA R&D application, you must provide a detailed explanation for each change and complete Page 2 for each change.

REV-545, Page 3

Instructions for Page 2, Breakdown of R&D Expenditures by Location

PART I

Line 1:

Column 3 – List the Total Qualified Research Expenses from Section A, Section B or Section C of FF 6765.

Line 2: Location A

Column 1 – List PA-qualified R&D expenditures for that location.

Column 2 – List PA expenditures located in a KOZ.

Column 3 – List total PA expenditures (sum of Columns 1 and 2).

Column 4 – List percent of federal expense (Line 1, Column 3).

Lines 3 through 6 should be completed for additional PA locations (if more than five locations, duplicate Page 2).

Line 7:

Column 3 – List total Non-PA R&D expenditures.

Column 4 – List percent of federal expense (Line 1, Column 3).

Line 8:

Column 1 – Total PA-qualified R&D expenditures (this amount should match “Actual” amount on Line 1 of Page 1). Column 3 – Total R&D expenditures everywhere.

PART II

List address for each location (A, B, etc.).

PART III

List contact’s name, telephone number, fax number and email address for each location (A, B, etc.).

NOTE: COMPLETE PAGE 2 OF R&D APPLICATION EVEN IF ALL EXPENSES WERE INCURRED IN PENNSYLVANIA. PLEASE CARRY ALL TOTALS TO THE BOTTOM OF EACH COLUMN, PART I, PAGE 2 OF R&D APPLICATION.

Please visit www.revenue.state.pa.us for further information. Questions regarding completion of the application and the calculation of the credit may be directed to 717-221-5966

Do not include this application with the filing of your Pennsylvania tax return. Send completed, signed applications to:

Bureau of Corporation Taxes

PO Box 280703

Harrisburg PA 17128-0703

REV-545, Page 4