REV-984: Pennsylvania Organ & Bone Marrow Donor Tax Credit (REV-984) (Revision)

Who files this form

Use REV-984 to apply for the Pennsylvania Organ & Bone Marrow Donor Tax Credit if your business provides paid leave specifically for employees to donate an organ or bone marrow.

Qualifying leave is limited to five working days, or the hourly equivalent, per employee. It does not include an employee’s use of annual leave or sick days.

Eligible business firms include entities subject to Pennsylvania personal income tax, corporate net income tax, bank and trust company shares tax, domestic title insurance companies shares tax, insurance premiums tax, or mutual thrift institutions tax. The definition also includes individuals, partners, PA S corporation shareholders, estates, trusts, and beneficiaries of estates and trusts.

When it's due

Apply by the 15th day of the fourth month following the close of the business firm’s taxable year. The approved credit applies to the taxable year in which the leave of absence was granted.

The text gives this deadline rule rather than specific calendar due dates for individual tax years.

What you'll need

Have the business name, address, SSN, FEIN, entity type, and tax-period beginning and ending dates ready.

For each donating employee listed on Line 3, include:

• Pay statements for the absence period and the periods immediately before and after it.
• A physician’s letter describing the procedure and dates of absence, with the employee’s full name.

You will also need each employee’s name, SSN, absence dates, and qualifying gross compensation.

For each temporary-help occurrence listed on Line 5, the required attachments are:

• An agency invoice showing the cost per day, not exceeding five days.
• A pay statement for the temporary employee listing the beginning and ending service dates, not exceeding five days.

Have the temporary help’s FEIN or SSN, service dates, and amount paid ready. Include a separate schedule with the requested details if there are more than three donating employees or more than three temporary replacements.

For the payroll apportionment calculation, have total compensation paid in Pennsylvania and total compensation paid everywhere during the tax period. The department may request additional documentation to verify the credit.

How to file

1. Complete Section A with the business information and check the applicable entity-type boxes.
2. In Section B, enter the tax period, number of donating employees, employee compensation details, and temporary-help costs.
3. Add Line 4 and Line 6 to calculate Line 7. On Line 8, divide total compensation paid in Pennsylvania by total compensation paid everywhere. The factor is 1.0 if all compensation was paid in Pennsylvania. Multiply Line 7 by Line 8 to calculate the Pennsylvania credit on Line 9.
4. Complete the certification. The form must be signed by a corporate officer. Include the required attachments and any additional schedules.
5. Send the completed, signed application to:

PA DEPARTMENT OF REVENUE

OFFICE OF ECONOMIC DEVELOPMENT

11TH FLOOR STRAWBERRY SQUARE

HARRISBURG PA 17128

For more information, contact RA-RVTAXCREDITS@PA.GOV.

Common mistakes

• Counting annual leave or sick days. These do not qualify as donation leave for this credit.
• Exceeding the leave limit. Qualifying leave cannot exceed five working days, or the hourly equivalent, per employee.
• Including excluded compensation. Do not count bonuses for prior or future services, commissions for prior services, noncash compensation, exercised stock options, previously deferred compensation, health-plan payments, expense reimbursements, or other items outside normal compensation.
• Omitting extra schedules. Attach a separate schedule when there are more than three donating employees or temporary replacements.
• Skipping apportionment. A business taxed in more than one state must apportion the credit using the payroll factor.
• Sending an unsigned application. The form requires a corporate officer’s signature.

Questions people ask

What costs are used to calculate the credit?

The calculation adds qualifying employee compensation paid during donation leave to the cost of temporary replacement help, then applies the payroll apportionment factor. Temporary-help costs are the invoice amount paid to an agency or gross compensation paid to an individual hired to cover the leave.

How will I know how much credit is approved?

The department will notify taxpayers of the approved credit amount. The approved credit may be applied to the taxable year in which the leave was granted.

Can unused credit be refunded or carried to another year?

Unused credit may be carried forward for no more than three succeeding taxable years. It cannot be carried back and is not refundable.

Can partners or PA S corporation shareholders claim the credit?

Yes. A pass-through entity’s credit may be claimed by each partner, member, or shareholder on a pro-rata basis according to their share of the entity’s income. For this credit, a pass-through entity is a partnership or PA S corporation.

Can the credit offset tax withheld from employees?

No. The credit cannot be applied against tax an employer withholds from employees under Article III of the Tax Reform Code.

Official sources

• https://www.pa.gov/content/dam/copapwp-pagov/en/revenue/documents/formsandpublications/formsforbusinesses/corporationtax/documents/rev-984.pdf