Pennsylvania Educational Improvement/Opportunity Scholarship Tax Credit

Educational Improvement/Opportunity Scholarship Tax Credit
Educational Improvement/Opportunity Scholarship Tax Credit Election Form (REV-1123)
IMPORTANT: FILL IN FORM MUST BE DOWNLOADED ONTO YOUR COMPUTER PRIOR TO COMPLETING

(EX) 12-20

REV-1123

BUREAU OF INDIVIDUAL TAXES
PO BOX 280604
HARRISBURG PA 17128-0604

EDUCATIONAL IMPROVEMENT/
OPPORTUNITY SCHOLARSHIP
TAX CREDIT ELECTION FORM

Irrevocable election to pass Educational Improvement Tax Credit (EITC)/Opportunity Scholarship Tax Credit (OSTC) through to shareholders,
members or partners. A separate election must be submitted for each year an EITC/OSTC is awarded.

SECTION I
IDENTIFICATION INFORMATION
START Pass-Through Entity Name

Date Received: Department Use Only

➜

Street Address

City
Email Address

Fax Number

Telephone Number

State

ZIP Code

Identification Number (FEIN, SSN)

YYYY
1a. Enter the amount of the EITC awarded

and the tax year of the award

1b. Enter the amount of the OSTC awarded

and the tax year of the award

. See the instructions.

YYYY

. See the instructions.

2. Forwarding pass-through entity FEIN:
3. Record of contributions. See the instructions.
Contribution Date:

Amount:
$
$
$
$
$
TOTAL

$

NOTE: Please answer “yes” to only one of the following questions, as an EITC/OSTC may be passed through for use by owners in one tax year only.
4. Will the awarded EITC/OSTC be passed through for use by the owner(s) in the tax year of the contribution?

Yes

No

5. Will the awarded EITC/OSTC be passed through for use by the owner(s) in the tax year immediately
following the tax year of the contribution?

Yes

No

6. For EITC/OSTC awarded after June 30, 2020 and before July 1, 2022, provide the following information:
(a) APPLICATION
IDENTIFICATION NUMBER

(b) A/C

(c) AMOUNT OF AWARD OR
AMOUNT CARRIED FORWARD

(d) AMOUNT(S) TO BE PASSED
THROUGH TO OWNER(S)

(e) AMOUNT(S) TO BE
CARRIED FORWARD

You must also complete and include Section II on Page 2.
I, the undersigned, declare and certify I am a corporate officer, general partner or limited liability company member of the above-named entity, and I have
authority to bind the above-named entity to the terms and conditions of this election.
Signature of Company Official

Date
PLEASE SIGN AFTER PRINTING.

Printed Name

Printed Title or Affiliation to the Entity

MM/DD/YYYY

Telephone Number

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REV-1123 (EX) 12-20

SECTION II

ALLOCATION OF CREDIT

Complete this section for each shareholder, member or partner receiving a pass-through Educational Improvement or Opportunity Scholarship Tax
Credit. If additional lines are needed, make a copy of this schedule to ensure all required information is provided.
Name and address of each owner having an interest in the entity. SSN/FEIN
Include name, street, city, state, ZIP.

Distributive
income
percentage

Total amount of
EITC/OSTC credit to
pass through to the
owner (pass-through
amount x% of
distributive income to
which the owner is
entitled)

Taxable year to
apply the passthrough
EITC/OSTC on
behalf of the
owner (must be
the same for all
owners)

YYYY

QSST

%

QSST

%

QSST

%

QSST

%

QSST

%

QSST

%

QSST

%

QSST

%

QSST

%

QSST

%

QSST

%

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Instructions for REV-1123

Educational Improvement/Opportunity Scholarship Tax Credit Election

REV-1123 IN (EX) 12-20

WHAT’S NEW
As a result of Act 136 of November 25, 2020, Educational
Improvement Tax Credits and/or Opportunity Scholarship
Tax Credits awarded after June 30, 2020 and before July 1,
2022 may be passed through in whole or in part to a passthrough or special purpose entity’s owner(s) and unused
credits may be carried forward for up to two tax years. Only
the original entity awarded the credit may carry forward
unused tax credits.

GENERAL INFORMATION
PURPOSE OF FORM
Use the REV-1123, Educational Improvement/Opportunity
Scholarship Tax Credit Election Form, to report the amount
of Educational Improvement Tax Credit (EITC) or
Opportunity Scholarship Tax Credit (OSTC) awarded to a
pass-through entity or special purpose entity along with the
amounts of the EITC or OSTC to be passed through to the
partners, members or shareholders (owners) of the passthrough or special purpose entity. The REV-1123 is also
used to elect the tax year in which the EITC or OSTC is to
be passed through to the owners of the pass-through or
special purpose entity.

RECORDING DOLLAR AMOUNTS
Show money amounts in whole-dollars only. Eliminate any
amount less than $0.50 and increase any amount that is
$0.50 or more to the next highest dollar.

WHO MUST COMPLETE
The REV-1123 must be completed by the pass-through entity or special purpose entity and sent to the department separately from the PA-20S/PA-65, S Corporation/Partnership
Information Return.
NOTE: A separate REV-1123 must be completed by
the pass-through entity for each EITC or OSTC award.
An EITC and OSTC credit awarded to a pass-through entity
in the same tax year must be reported on separate REV1123s. In addition, if the use of a carryforward amount of
EITC or OSTC is reported, separate REV-1123s must be
completed which reports only the amount of EITC or OSTC
carried forward. Do not combine EITC and OSTC amounts
on the same REV-1123 and do not combine EITC and/or
OSTC amounts awarded in different tax years.

IMPORTANT: An election to pass through an EITC or
OSTC must be made by the pass-through entity or
special purpose entity on or before the tax report due date
for the tax year in which the contribution is made. A separate election must be made for each tax year. If an election
is not made to pass through the EITC or OSTC to the owners, the EITC or OSTC will expire. Refer to the Mailing
Instructions for additional information.
You may also provide a copy of the REV-1123 to each
owner for inclusion with the owner’s tax return. If the
REV-1123 is provided to each owner, the Social Security
numbers (SSN) and federal employer identification number
(FEIN) of all other owners must be redacted to the last four
digits of the SSN or FEIN.

DEFINITIONS
Pass-Through Entity
A pass-through entity includes the following:

• An unincorporated entity that is classified as a partnership for federal income tax purposes;

• A single-member limited liability company that is classified as a disregarded entity for federal income tax purposes;

• A Pennsylvania S corporation; and
• A special-purpose entity created to receive and make
contributions in order for the entity to receive an EITC
or OSTC
Special Purpose Entity
A special purpose entity is a pass-through entity, the purpose of which is the making of contributions for an EITC or
OSTC and whose shareholders, partners or members are
composed of owners or employees of other business firms.
The special purpose entity receives the EITC or OSTC and
distributes the credit to its owners in proportion to their
ownership in the special purpose entity. Refer to
Informational Notice Miscellaneous Tax 2015-01,
Education Tax Credits, for additional information.

FORM INSTRUCTIONS
SECTION I
IDENTIFICATION INFORMATION
Enter the pass-through or special purpose entity’s name,
address, telephone number, fax number, email address
and FEIN in appropriate spaces provided.

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LINE INSTRUCTIONS
LINE 1A
Enter the amount of EITC awarded and the tax year the
credit was awarded from the award letter sent by the
Department of Community and Economic Development. If
the credit was received from a pass-through entity, enter
the amount of EITC passed through to the pass-through
entity and the tax year it was passed-through to the owner.
CAUTION: Enter the amount of the credit award. Do
not enter the amount of the contributions. Use Line 3
to report the contribution date(s) and amount(s).

LINE 1B
Enter the amount of OSTC awarded and the tax year the
credit was awarded from the award letter sent by the
Department of Community and Economic Development. If
the credit was received from a pass-through entity, enter
the amount of OSTC passed through to the pass-through
entity and the tax year it was passed through to the owner.
CAUTION: Enter the amount of the credit award. Do
not enter the amount of the contributions. Use Line 3
to report the contribution date(s) and amount(s).

LINE 2
The EITC and OSTC may be passed through by a passthrough entity (PTE # 1) to another pass-through entity
(PTE # 2). These credits may be passed through by multiple PTEs.
When a pass-through entity (PTE #1) passes the EITC or
OSTC on to a partner, member or shareholder that is
another pass-through entity (PTE # 2) that will pass the
credit through again to its shareholders, members or partners, enter the FEIN of PTE # 1 in the space provided.
CAUTION: With the exception of a qualified subchapter
S trust (QSST), a trust may not pass an EITC or
OSTC through to its beneficiary(ies). All estates and all
other types of trusts may not pass through an EITC or
OSTC to their beneficiary(ies). With the exception of a
QSST, any EITC or OSTC passed through to an estate or
trust must be used to offset the tax liability of the estate or
trust or the credit is lost.

LINE 3
For each contribution made to an educational improvement
or scholarship organization, enter the date the contribution
was made and the amount. Add the contributions and enter
the total amount.
If the EITC or OSTC credit was received from a passthrough entity, skip Lines 3, 4, 5 and 6.
IMPORTANT: The total amount of the contributions
made will exceed the amount of the tax credit award.
2

The credit award amount will depend on the number of tax
years of the commitment for the contributions by the passthrough entity.
CAUTION: An EITC or OSTC must be applied for
and awarded for each year of a multi-year commitment regardless of the commitment level indicated in the
initial application year.

LINES 4 & 5
The pass-through entity or special purpose entity awarded
the EITC or OSTC must make an election to pass the EITC
or OSTC through to the owners in the tax year the contributions were made or to pass the EITC or OSTC through
to the owners in the tax year immediately following the year
in which the contributions were made.
To make an election to pass the EITC or OSTC through to
the owners in the tax year of the contribution, check the
“Yes” box for Line 4 and the “No” box for Line 5.
To make an election to pass the EITC or OSTC through to
the owners in the tax year immediately following the year of
the contribution, check the “No” Box for Line 4 and the
“Yes” box for Line 5.
IMPORTANT: Only one box may be checked “Yes” on
either line of the election form.

LINE 6
Complete Line 6 only for credits awarded after June 30, 2020
and before July 1, 2022 and only if the entity awarded the
credit elects to carryforward unused credits or is reporting the
allocation and use of unused credits from a previous tax year.
NOTE: Unused EITC and OSTC credits may only be
carried over two tax years by the awarded entity and
only if the EITC or OSTC was awarded after June 30, 2020
and before July 1, 2022.
Column (a)
Enter the EITC or OSTC Application Identification Number
included on the letter from the Department of Community
and Economic Development acknowledging the receipt of
the proof of contribution.
Column (b)
Enter an A if the EITC or OSTC amount reported in Column (c)
is the awarded amount in the awarding tax year. Enter a C
if the amount reported in Column (c) is an unused amount of
EITC or OSTC being carried over from a previous tax year.
Column (c)
Enter the amount of the EITC or OSTC award or the
amount carried over from a previous tax year.
CAUTION: Do not combine EITC or OSTC awards
and/or carry forward amounts awarded in different tax
years on the same REV-1123. A separate REV-1123 must
be filed for each credit type, each awarded credit and each
amount carried forward.

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Column (d)
Enter the amount of EITC or OSTC from Column (c) to be
passed though to the pass-through entity’s owners in proportion to their distributive income percentage and as allocated
and reported in Section II.
Column (e)
If any of the amount of the EITC or OSTC reported in
Column (c) will not be passed through to the pass-through
entity’s owners, enter the amount of the EITC or OSTC to
be carried forward by the entity awarded the EITC or OSTC.

SIGNATURE & OATH
Signature of Company Official
A company official who has the authority to bind the passthrough or special purpose entity to the declarations made
on Form REV-1123 must sign and date the form. The company official’s printed name and title or affiliation to the entity must also be entered in the spaces provided.

SECTION II
ALLOCATION OF CREDIT
Enter the name, address, Social Security number (SSN),
federal employer identification number (FEIN), distributive
income percentage, the total EITC or OSTC award amount
allocated to the owner and the taxable year to which the
EITC or OSTC will be applied. If a qualified subchapter S
trust is the owner shown, complete the oval in the SSN/FEIN
field.

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CAUTION: The EITC or OSTC must be awarded to
each owner per the distributive income percentage to
which the owner is entitled. The total of all amounts awarded to the owners cannot exceed the amount reported on
Line 1A or Line 1B of Section I, or on Line 6, Column (d) of
Section I.
IMPORTANT: Married taxpayers with joint ownership
in a pass-through entity or special purpose entity
must be shown as separate taxpayers for the EITC or
OSTC to be applied to each individual taxpayer. The PA-40
tax return may be filed using the Married, Filing Jointly filing
status, but the REV-1123 must show them as separate taxpayers.
NOTE: If more entity owners exist than space is
available on the form, include as many additional
Section II sheets as necessary.

MAILING INSTRUCTIONS
Mail the signed completed REV-1123 to the department on
or before the filing of the pass-through or special purpose
entity’s tax return. Mail the form to:
PA DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXES
PO BOX 280604
HARRISBURG PA 17128-0604

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