Pennsylvania Credit For Tax Paid By Affiliated Entities

Credit For Tax Paid By Affiliated Entities
Schedule C-7 - Credit for Tax Paid by Affiliated Entities (REV-803)IMPORTANT: FILL IN FORM MUST BE DOWNLOADED ONTO YOUR COMPUTER PRIOR TO COMPLETING

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REV-803

(SU) 09-22 (FI)

8030022105

SCHEDULE C-7
CREDIT FOR TAX PAID BY AFFILIATED ENTITIES

START

➜

Corporation Name
FEIN

Revenue ID

SECTION I

Tax Year Beginning

STATE INCOME TAX LIABILITY FOR AFFILIATED ENTITIES

1. Affiliated Entity Name

FEIN

a. Imposed State Tax

1a.

b. State (or Jurisdiction) Income Tax Credits

1b.

c. Adjusted Tax

Jurisdiction

Credit Code

1c.

d. Total Intangible Expenses & Related Interest

1d.

e. Total Income

1e.

f. Liability Due

1f.

2. Affiliated Entity Name

FEIN

a. Imposed State Tax

2a.

b. State (or Jurisdiction) Income Tax Credits

2b.

c. Adjusted Tax

Jurisdiction

Credit Code

2c.

d. Total Intangible Expenses & Related Interest

2d.

e. Total Income

2e.

f. Liability Due

2f.

3. Affiliated Entity Name

FEIN

a. Imposed State Tax

3a.

b. State (or Jurisdiction) Income Tax Credits

3b.

c. Adjusted Tax

Jurisdiction

Credit Code

3c.

d. Total Intangible Expenses & Related Interest

3d.

e. Total Income

3e.

f. Liability Due

3f.

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Tax Year Ending

TOP OF PAGE

PAGE 1

IMPORTANT: FILL IN FORM MUST BE DOWNLOADED ONTO YOUR COMPUTER PRIOR TO COMPLETING

FILL IN FORM USING ALL CAPS. DO NOT USE DASHES (-) OR SLASHES (/) IN ANY FIELD. ENTER DATES AS MMDDYYYY. USE WHOLE DOLLARS ONLY.

8030022205
REVENUE ID
REV-803 (SU) 09-22 (F!)

4. Affiliated Entity Name

FEIN

a. Imposed State Tax

4a.

b. State (or Jurisdiction) Income Tax Credits

4b.

c. Adjusted Tax
4d.

e. Total Income

4e.

f. Liability Due

4f.

5. Affiliated Entity Name

FEIN

a. Imposed State Tax

5a.

b. State (or Jurisdiction) Income Tax Credits

5b.

c. Adjusted Tax

Jurisdiction

Credit Code

5c.

d. Total Intangible Expenses & Related Interest

5d.

e. Total Income

5e.

f. Liability Due

5f.

6. Total Liability Due

CREDITS ALLOWED & LIMITATIONS

1. Total Liability Due from Section I.

2. Enter Apportionment Factor Percentage from RCT-101, Schedule C-1.

3. Multiply Line 1 by Line 2.

4. Enter Amount from Schedule C-6, Line 11.

5. Enter Apportionment Factor Percentage from RCT-101, Schedule C-1.

6. Multiply Line 4 by Line 5.

7. Enter PA Corporate Net Income Tax Rate.

8. Multiply Line 6 by Line 7.

9. Enter Smaller amount of Line 3 or Line 8.

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Credit Code

4c.

d. Total Intangible Expenses & Related Interest

SECTION II

Jurisdiction

PAGE 2

Instructions for REV-803

Credit For Tax Paid By Affiliated Entities

REV-803 IN (SU) 11-23

GENERAL INFORMATION

COMPLETING PA SCHEDULE C-7

PURPOSE OF SCHEDULE

CORPORATION NAME

The purpose of this credit is to ensure there is no double
taxation and discrimination against interstate commerce in
the addition of intangible expense or cost and interest
expense or cost.

Enter the complete name of the corporation as shown on
the RCT-101, PA Corporate Net Income Tax Report.

For taxable years beginning after December 31, 2014,
taxpayers that are required to add back intangible
expenses or cost and related interest expense or cost
deductions to their federal taxable income may claim a
credit for a portion of the tax paid by the affiliated entity if:
1. the affiliated entity was subject to tax within the Commonwealth of Pennsylvania or another state, and
2. the tax base includes the intangible expense or cost and
interest expense or cost that was paid, accrued, or
incurred by the taxpayer.
The portion of tax paid by the affiliated entity is computed
by multiplying the apportionment factor of the taxpayer in
Pennsylvania by the greater of:
1. the tax liability of the affiliated entity with respect to the
portion of its income representing the intangible
expense or cost, or the interest expense or cost, paid,
accrued, or incurred by the taxpayer; or
2. the aforementioned tax liability before it was offset by a
credit given by Pennsylvania or that state, except credits
made for prepayments of tax.
The resultant credit for tax paid by the affiliated entity shall
not exceed the taxpayer’s liability in this commonwealth attributable to the addition of intangible expense or cost and
interest expense or cost to federal taxable income. (72 P.S.
7401(3) (1) (t))

WHEN TO FILE
This schedule must be filed at the same time the
corporation files its RCT-101, PA Corporate Net Income Tax
Report.

WHERE TO FILE
This schedule must be submitted with RCT-101 and with
REV-802, Schedule C-6, Add-back for Intangible Expenses
or Costs and Related Interest Expense.

REVENUE ID
Enter the 10-digit Revenue ID number of the corporation as
shown on RCT-101. The Revenue ID is a unique 10-digit
number assigned by the Department of Revenue.
FEIN
Enter the 9-digit FEIN number of the corporation as shown
on RCT-101.
TAX YEAR BEGINNING AND TAX YEAR ENDING
Enter the tax year beginning and tax year ending as shown
on RCT-101.

LINE INSTRUCTIONS
SECTION I
STATE INCOME TAX LIABILITY FOR AFFILIATED
ENTITIES
This section allows for the listing of up to five income tax
returns that the Affiliated Entity (or Entities) filed in
jurisdictions that are non-unitary and that include in their
tax base the intangible and related interest expense that
was paid by the taxpayer as shown on REV-802, Schedule
C-6 Add-back for Intangible Expenses or Cost and Related
Interest. If the taxpayer availed itself to any of the three
statutory exceptions on Schedule C-6, they cannot claim
the credit on this schedule. If the number of affiliated
entities and number of returns goes over the five lines
shown in Section I, the taxpayer should photocopy Section
I, using a separate copy for each affiliated entity so that the
income tax paid to the qualifying jurisdictions will be
separately shown on Lines 1 - 5.
AFFILIATED ENTITY NAME
List the name of the affiliated entity for which the credit is
computed. List entities in the same order as provided on
Section I of the REV-802, Schedule C-6 Add-back for
Intangible Expenses or Costs and Related Interest
Expense.

www.revenue.pa.gov

REV-803

FEIN
List the FEIN of the affiliated entity for which the credit is
computed.
JURISDICTION
Include only those states where the affiliated entity was
required to file on a non-unitary basis. Do not include states
where unitary returns, partial unitary returns, or elective
unitary returns were filed inclusive of the affiliated entity.
Also, include only those states where the affiliated entity
was subject to a corporate tax on net income.
CREDIT CODE
Use the following codes to describe the type of add-back
credit: 01=Research; 02=Community Development;
03=Investment; 04=Economic Revitalization; 05=Jobs
Creation; 06=Film Production; 07=Environmental
Protection; 08=Other.

LINE a
For each affiliated entity, enter the amount of state income
tax deducted for each non-unitary filing state, as computed
and included in the total amount deducted for state income
taxes reported under federal Form 1120, Line 17 – Taxes
and Licenses, for that affiliated entity. This amount of
corporate net income tax is only for the non-unitary filing
state, not the total amount for all state income taxes paid
on Line 17 for the affiliated return.
Example: Affiliated entity has a total state income tax
expense of $1,000,000 on Line 17 of its federal Form 1120.
But of this $1,000,000, only $250,000 was for corporate net
income tax incurred for three states that require the filing of
non-unitary returns. The remainder of the $1,000,000
deducted on Line 17 was either for taxes based on net
worth or capital stock, or was allocations from states that
require the filing of combined returns (unitary filings). Only
the corporate net income taxes incurred for these three
states, individually listed will be included on Line a.

LINE b
Enter the amount for any state tax credits other than for the
payment of tax that were included in the amount shown on
Line a.

LINE c
Enter the amount of tax based on income and adjusted for
credits by adding Line a and Line b.

LINE d
Enter the total amount of intangible expense or cost and
related interest expense or cost that the taxpayer paid to
the affiliated entity. The transaction must be included in the
tax base of the affiliated entity for that state.
2

LINE e
Enter the total income received by affiliated entity as
reported on Line 1C and Lines 4 through 10 on its proforma
federal Form 1120 that was taxable as income for that
state. To the extent any of these items of income are offset
by an additional deduction to Line 28 in determining taxable
income for that state, those items are not taxable income.

LINE f
Compute the tax liability that the affiliated entity incurred for
each state that was attributable to the intangible expenses
and related interest expense or cost paid by the taxpayer to
the affiliated entity, using the formula: c * (d/e) = f. Divide
Line d by Line e, then multiply the quotient by Line c.

LINE 6
Enter the total liability due by adding Lines 1f – 5f.

SECTION II
CREDITS ALLOWED & LIMITATIONS
COMPUTING THE CREDITS ALLOWED

LINE 1
Enter the total liability due from Part I, Line 6.

LINE 2
Enter the apportionment proportion used for the corporate
net income tax from RCT-101, Schedule C-1, Line 1C or
Line 2C, whichever is applicable.

LINE 3
Multiply Line 1 by Line 2.
COMPUTING THE LIMITATIONS TO THE CREDIT

LINE 4
Enter the total add-back for the intangible expenses and
related interest expense or cost from Schedule C-6,
Section I, Line 11.

LINE 5
Enter the apportionment proportion used for the corporate
net income tax from RCT-101, Schedule C-1, Line 1C or
Line 2C, whichever is applicable.

LINE 6
Multiply Line 4 by Line 5.

REV-803

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LINE 7
Enter the PA corporate net income tax rate.

LINE 8

LINE 9
Enter the smaller of Line 3 or Line 8. Carry the amount to
RCT-101, Section C, Line 15.

Multiply Line 6 by Line 7.

www.revenue.pa.gov
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REV-803
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Extracted from PDF file 2023-pennsylvania-form-rev-803.pdf, last modified February 2016

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More about the Pennsylvania Form REV-803 Corporate Income Tax Tax Credit TY 2023

We last updated the Credit For Tax Paid By Affiliated Entities in February 2024, so this is the latest version of Form REV-803, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form REV-803 directly from TaxFormFinder. You can print other Pennsylvania tax forms here.

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Other Pennsylvania Corporate Income Tax Forms:

TaxFormFinder has an additional 174 Pennsylvania income tax forms that you may need, plus all federal income tax forms.

Form Code	Form Name
Form PA-41	PA Fiduciary Income Tax Return Tax Return
Form PA-40 ES (P/S/F)	PA-40 ES Partnership, PA S Corporation and Fiduciary - Declaration of Estimated Withholding Tax Estimated
Form RCT-127A	Public Utility Realty Tax Report
Form PA-20S-PA-65	S Corporation/Partnership Information Return (PA-20S/PA-65) Tax Return
Form RCT-900	Public Utility Realty Report By Local Taxing Authorities

Download all PA tax forms View all 175 Pennsylvania Income Tax Forms

Form Sources:

Pennsylvania usually releases forms for the current tax year between January and April. We last updated Pennsylvania Form REV-803 from the Department of Revenue in February 2024.

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Form REV-803 is a Pennsylvania Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.

About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Pennsylvania Form REV-803

We have a total of nine past-year versions of Form REV-803 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:

2023 Form REV-803

Schedule C-7 - Credit for Tax Paid by Affiliated Entities (REV-803)

2022 Form REV-803

Schedule C-7 - Credit for Tax Paid by Affiliated Entries (REV-803)

2021 Form REV-803