REV-1123: Educational Improvement/Opportunity Scholarship Tax Credit Election Form (REV-1123) (Revision)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024, 2025, 2026
Pennsylvania Form REV-1123 makes an irrevocable election to pass Educational Improvement Tax Credit (EITC) or Opportunity Scholarship Tax Credit (OSTC) amounts through to an entity’s shareholders, members or partners. It reports the credit awarded, contributions and credit alloca
Who files this form
Pass-through entities and special purpose entities must complete REV-1123 to report Educational Improvement Tax Credits (EITC) or Opportunity Scholarship Tax Credits (OSTC) and elect to pass them through to their shareholders, members or partners.
Pass-through entities include:
- Unincorporated entities classified as partnerships for federal income tax purposes.
- Single-member limited liability companies classified as disregarded entities for federal income tax purposes.
- Pennsylvania S corporations.
- Special purpose entities created to receive and make contributions to receive EITC or OSTC.
A separate election is required for each tax year. Separate forms are also required for each EITC or OSTC award.
What you'll need
Have these records and details ready:
- The Department of Community and Economic Development award letter showing the credit amount and award tax year.
- The entity’s name, address, FEIN and contact information.
- Contribution dates and amounts, unless the credit was received from another pass-through entity.
- The forwarding entity’s FEIN if another pass-through entity passed the credit to your entity.
- Each receiving owner’s name, address, SSN or FEIN, distributive income percentage, allocated credit amount and tax year for using the credit.
Complete Section II for each receiving owner. Include additional Section II sheets if needed.
How to file
Online: Effective for tax year 2025, businesses can complete the pass-through electronically at myPATH.pa.gov. Log in and follow the steps under Pass Through My Restricted Credits. The online REV-1123 cannot be used when a credit is passed through more than once, such as through an intermediary entity to taxpayers.
Email: Send the form to rev1123@pa.gov.
Mail: Send the form to:
PA DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXES
PO BOX 280604
HARRISBURG PA 17128-0604
An authorized company official must sign and date the form and provide their printed name and title or affiliation. Submit REV-1123 separately from the PA-20S/PA-65.
The election must be made on or before the tax report due date for the tax year in which the contribution is made.
Common mistakes
- Combining credits: Do not combine EITC and OSTC, awards from different tax years, or awards and carryforward amounts on one form. Separate forms are required for each credit type, awarded credit and carryforward amount.
- Entering contributions as the award: Lines 1a and 1b ask for the credit award amount. Report contribution dates and amounts on Line 3.
- Choosing two years: Answer “Yes” to only one of Lines 4 and 5. The credit can be passed through for use in only one tax year.
- Allocating credits incorrectly: Allocate credits according to each owner’s distributive income percentage. Incorrect allocations will cause rejection and delays. Total allocations cannot exceed the applicable credit amount reported in Section I.
- Combining married owners: List spouses with joint ownership as separate taxpayers, even if they file a joint PA-40.
- Sharing other owners’ full tax IDs: If you give an owner a copy, redact every other owner’s SSN or FEIN to show only the last four digits.
- Missing the election: If the entity does not elect to pass through the credit, the credit will expire.
Questions people ask
Can the pass-through election be revoked?
No. The form describes the election as irrevocable.
Which tax year can owners use the credit in?
The awarded entity may elect the contribution year or the immediately following tax year. The selected tax year must be the same for all owners.
What if our entity received the credit from another pass-through entity?
Enter the credit amount and the tax year it was passed through to your entity. Enter the forwarding entity’s FEIN on Line 2, and skip Lines 3 through 6.
Does filing an owner’s return early guarantee an early refund?
No. The department cannot process the credit allocation until it receives the award information, the pass-through allocation form and the awardee’s tax return electing to pass through the credit. Processing time varies with the supporting documentation needed to verify the credit.