Innovate in PA Tax Credit Program
The Innovate in PA program was established by Act 52 of 2013. The program authorized the Pennsylvania Department of Community and Economic Development to sell $100 million of state insurance premium tax credits to insurance companies for the purpose of establishing the Innovate in PA Fund used to distribute proceeds to innovation and economic growth technology-based projects.
Innovate in PA tax credits are effective beginning January 1, 2017 against insurance premiums tax liabilities incurred after January 1, 2016. The Innovate in PA Tax Credit Claim Form must be submitted by Monday, February 3, 2020 to the Department of Revenue for tax credit utilization, subject to limitation as specified in the tax credit certificate, against estimated and final Insurance Premiums Tax Liability.
Use of this credit against Insurance Premiums Tax Liability is subject to the limitation in the Act that the total amount of Tax Credits applied against Insurance Premiums Tax Liability by all Qualified Taxpayers in any fiscal year may not exceed $20 million per year.
Qualified Taxpayers may carry forward excess credit to succeeding tax years for future insurance premium tax liabilities, as long as the fiscal cap limitation has not be exceeded for the fiscal year. The tax credit may not be carried over to any taxable year that begins after December 31, 2025.
A qualified taxpayer may sell or assign tax credits to any other qualified taxpayer that is in good standing with the Insurance Department and the laws and regulations of the Commonwealth of Pennsylvania.
Questions regarding the utilization of the Innovate in PA tax credits should be directed to 717-772-3896 or firstname.lastname@example.org.
Questions regarding the Innovate in PA Fund should be directed to the Department of Community and Economic Development at 717-720-1396.
Questions regarding the Insurance Department should be directed to 717-783-6409.