If you conducted business or earned income in Pennsylvania, you may be subject to Pennsylvania state taxes. If this applies to you, here are the key tax deadlines and credit application details for Pennsylvania in 2024.
In Pennsylvania, businesses aiming to claim the R&D tax credit must complete and receive approval for an application.
The deadlines for filing the Research and Development Credits are aligned with the state's income tax filing deadlines for different business entities.
In Pennsylvania, you may:
File your taxes online with myPATH
When filing by mail, ensure that your documents are postmarked by the due date.
Federal filing is not required.
Amendments are not allowed.
Application Information
Pennsylvania's R&D tax credit program requires the filing and approval of an application to claim the credit.
Here is how you can apply
Here is how you can apply
Apply for the online application before the August 1st deadline.
To apply for the Research and Development Tax Credit visit myPATH and create an account if you have not already made one.
Once logged into your myPath profile:
Click the More... tab at the top of the page
Locate the Applications section
Click on Research & Development Tax Credit Application
Note: If you need to go back to a previous page, use the PREVIOUS button and not the back button on your browser.
Credit Application Video Tutorial:
All applications must be submitted by December 1st.
Taxpayers must meet 4 criteria in order to submit an application.
Must be an entity subject to Personal Income Tax (Article III) or Corporate Net Income Tax (Article IV).
Must have research expenses incurred for qualified research and development conducted within Pennsylvania, as defined in section 41(d) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. section 41(d)) and section 41(b) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. section 41(b)) incurred for Pennsylvania qualified research and development.
Must be in state tax compliance with the laws and regulations of the Commonwealth as determined by the Department of Revenue.
Must have at least two years of R&D expenditures (previously only one year of prior R&D expenditures were required).
Overview, Eligibility, Limitations, and Allocation Cap
Overview, Eligibility, Limitations, and Allocation Cap
Research & Development Tax Credit Program
A corporation that incurs qualified research and development expenses in Pennsylvania may apply for a research and development tax credit. Unique to Pennsylvania, with the R&D Tax Credit Assignment Program, technology companies can sell any unused R&D tax credits in the open market to help advance and grow their businesses.
Under Act 85 of 2016, the sunset date for the Pennsylvania research credit has been repealed, and the total tax credit cap is $55,000,000. Of the total tax credit cap, $11,000,000 is set aside for small business research credits.
Pennsylvania research credits are transferable with approval from the Department of community and Economic Development.
Eligible Entities
C-Corporations, S-Corporations, LLCs, Partnerships
Special Notes
Large Businesses: Total Assets > $5M
Small Businesses: Total Assets < $5M
Credit Carryforward
Any unused Pennsylvania research credits may be carried forward for a period up to 15 years but may not be carried back.
The research credit is refundable.
Sale or Assignment of Credit
Credits may be eligible to be sold to other taxpayers.
Taxpayers entitled to a research and development credit may sell or assign all or any portion of the credits awarded, with the approval of the Department of Community and Economic Development.
The sale or assignment of the credit will not be approved if the seller has any outstanding state taxes.
All reports must have been filed and all outstanding tax liabilities paid before the sale or assignment is approved.
The purchaser or assignee must claim the credit in the tax year in which it is purchased or assigned.
However, the amount of credit the purchaser or assignee may use against any one qualified tax liability cannot exceed 75% of the qualified tax liability for that tax year.
The purchaser or assignee may not carry over, carry back, or carry forward any amount of the purchased or assigned credit, nor may they obtain a refund or assign the purchased or assigned credit.
S-Corporation / Partnership
You must file in Pennsylvania by March 15, 2025.
Applicable R&D Forms
Form REV-545A – Breakdown of Prior Year R&D Expenditures
File the above form with the following tax forms:
Form PA-20S/PA-65 – S Corporation/Partnership Information Return
Extension to File Taxes in Pennsylvania for 2024
To File an Extension
Form REV-276 – Application for Extension of Time to File
Use this form for an extension of time to file if you do not apply for a federal extension or if your request for a federal extension was denied.
Taxes owed in Pennsylvania for the tax year 2024 must be paid by March 15, 2025.
Pennsylvania grants a 5-month extension for filing your pass-through entity income tax return.
S-Corporation: the extension deadline is August 15, 2025.
Partnerships: the extension deadline is August 15, 2025.
Note that this extension pertains to the filing deadline, not the payment deadline.
Payment of taxes owed is still due by March 15, 2025.
C-Corporation
You must file in Pennsylvania by May 15, 2025.
Applicable R&D Forms
Form REV-545A – Breakdown of Prior Year R&D Expenditures
File the above form with the following tax forms:
Form RCT-101 – Pennsylvania Corporate Tax Report
Extension to File Taxes in Pennsylvania for 2024
Taxes owed in Pennsylvania for the tax year 2024 must be paid by May 15, 2025.
Pennsylvania automatically grants a 6-month extension on filing corporate income tax returns, if a federal extension is filed.
C-Corporation: the extension deadline is November 15, 2025.
Corporations that do not request an extension to file the federal income tax return may still request a 60-day extension to file the PA Corporate Net Income Tax Report.
The extension must be filed on or before the due date of the report.
To apply for an annual extension, complete the REV-853, Annual Extension Request, electronically using the Online Services Center at www.revenue.pa.gov.
Note that this extension pertains to the filing deadline, not the payment deadline.
Payment of taxes owed is still required by May 15, 2025.
Sole-Proprietorship
Sole-Proprietorship
You must file in Pennsylvania by April 15, 2025.
Applicable R&D Forms
Not eligible
File the above form with the following tax forms:
Form PA-40 – Pennsylvania Income Tax Return
Extension to File Taxes in Pennsylvania for 2024
To File an Extension
Form REV-276 – Application for Extension of Time to File
Use this form for an extension of time to file if you do not apply for a federal extension or if your request for a federal extension was denied.
Taxes owed in Pennsylvania for the tax year 2024 must be paid by April 15, 2025.
Pennsylvania automatically grants a 6-month extension on filing personal income taxes if a federal extension is filed and there is no tax due.
Sole-Proprietorship: the extension deadline is October 15, 2025.
Note that this extension pertains to the filing deadline, not the payment deadline.
Payment of taxes owed is still required by April 15, 2025.
References
We strive to ensure the accuracy of the information on this page, but it is not intended as tax or legal advice. Please use your own professional judgment and consult with a tax professional. Any advice you provide in connection with tax return preparation must comply in full with the requirements of IRS Circular 230.