PA-20S/PA-65 Schedule OC: 2025 PA Schedule OC - Other Credits (PA-20S/PA-65 OC) (2025)
Pennsylvania · Pennsylvania DOR · Used for tax years 2025
PA-20S/PA-65 Schedule OC reports a PA S corporation’s or partnership’s share of other tax credits after applying credits to the entity’s corporate tax liability, if any. It lists credit types, award details and claim amounts, with the total reported on the PA-20S/PA-65 Informatio
Who files this form
PA S corporations, partnerships, and limited liability companies filing as partnerships or PA S corporations for federal income tax purposes use Schedule OC to report their share of tax credits received after applying credits to the entity’s corporate tax liability, if any.
This version of Schedule OC is for tax year 2025 only.
Do not report credits passed through from another entity on this schedule, except for the Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC).
What you'll need
- Tax credit certificate or award notification for every credit claimed. Submit these with Schedule OC. For a credit awarded directly, include a copy of the award certification letter.
- Your PA-20S/PA-65 Information Return, for the business name and nine-digit federal employer identification number (FEIN).
- Credit details, including the credit type, award source, awardee tax ID, and claim amount. Use the official approval, award, assignment, or certification letter for the award number and award date, if available.
- An explanatory statement, if more than one award source code applies to a line.
- A C corporation return, if claiming the out-of-state credit described for S corporations taxed as C corporations in another state.
How to file
Complete Schedule OC
- Enter the business name and FEIN as shown on the PA-20S/PA-65 Information Return.
- Report each credit separately. Enter its credit type abbreviation, award source code, awardee tax ID, and claim amount. The awardee ID type is optional. Enter the award number and date if available.
- Attach additional forms if needed. Do not combine credits.
- Add the Claim Amount column. Enter the total on Schedule OC and on the PA-20S/PA-65 Information Return, Section V, Line 13a.
- Include the required credit certificates or award notifications.
The supplied text does not give a mailing address or e-filing method for Schedule OC itself.
Requests to pass credits through to owners
Submit the claim form on the reverse side of the award letter, or a request on entity letterhead, to ra-rvtaxcredits@pa.gov. A letter must list the total credit to distribute, each owner’s name and address, each owner’s credit amount, tax year, tax type, and tax identification number. An authorized entity representative must sign the statement. It should be submitted before owners file their individual returns. The email subject must name the credit and specify the attachment type, “claim form.”
For EITC or OSTC, complete REV-1123, Educational Improvement Tax Credit Election Form, and email it to rev1123@pa.gov. The subject must name the credit and specify the attachment type, “1123 form.”
Common mistakes
- Using the wrong year’s schedule. Schedule OC was redesigned for 2025. This version is for 2025 only.
- Leaving out credit documentation. Every credit claimed needs a tax credit certificate or award notification.
- Reporting ineligible passed-through credits. Credits received from another entity cannot be reported here except for EITC and OSTC.
- Passing through more credit than an owner can use. The request to pass a credit through is irrevocable.
- Deducting expenses that Pennsylvania does not allow. Certain expenses used to qualify for Neighborhood Assistance Program and Educational Improvement Tax Credits cannot be deducted. If deducted for federal purposes, report the reduction in expenses on Schedule M, Part II, Section V, Line f.
- Claiming an entity-level tax as the out-of-state resident credit. The text specifically says not to use the out-of-state credit line for that purpose.
Questions people ask
Are restricted tax credits refundable?
No. Restricted tax credits are nonrefundable. If applicable, other nonrefundable credits must be applied first.
Can an owner save a transferred credit for a later year?
No. An owner must claim the transferred credit in the tax year of the transfer. The owner cannot carry it forward or back, obtain a refund, sell it, assign it, or pass it through again.
What award source codes are available?
Use CY for current-year credits awarded directly to the taxpayer, PT for credits received from pass-through entities, PA for credits purchased from or assigned by another taxpayer, and CO for credits carried over from a prior year. If more than one code applies to a line, submit an explanatory statement.
Where can I ask questions about using these credits?
Direct questions about using credits claimed on Schedule OC to the Pennsylvania Department of Revenue at 717-772-3896.