June 26, 2012 by MDOPKIN

As the 2011 filing season is now behind us, here is a summary of some relevant Pennsylvania Tax changes that may impact your returns for 2012. This is not an all inclusive list and will focus on those changes I feel will have the biggest impact on closely held businesses and individuals.

Sales and Use Tax

Returns and remittances

Taxpayers reporting Sales & Use Tax liabilities of $25,000.00 or more for the third calendar quarter of the preceding year are required to file a return and make a payment by the 20th of the month.

Tax Credits

R&D tax credit

Total limit on R&D tax credit has been lowered from $60 million to $55 million.

Job creation tax credit

The total amount of Job Creation Credit award cannot exceed $10,100,000.

Keystone Special Development Zone Credit

A new program for the designation of Keystone Special Development Zones (“KSDZ”) for real property certified as Special Industrial Area by Department of Environmental Protection has been created. This statute provides a tax credit for employers within a KSDZ for new full-time jobs created beginning in Tax Year 2012 and for a period of ten tax years during the fifteen year period of the zone.

Local Tax Collection

Act 32 Legislation that amended the Local Tax Enabling Act to consolidate the collection of local income taxes at a county-wide level becomes fully implemented in 2012. Although enacted in 2008, Act 32 has a large impact in 2012.

Personal Income Tax

Third-party preparer e-file mandate

A third-party preparer who prepares 50 or more Pennsylvania personal income tax returns is now required to electronically file.

Dopkin Law Firm advises clients on the intricacies of business and tax law matters. To discuss these or other issues with attorney and CPA Matt Dopkin, contact us at 215-519-4269 or via email at mdopkin@dopkinlawfirm.com.

© 2012 Dopkin Law Firm

This Alert is published by Dopkin Law Firm. It is provided solely as legal information, not legal advice. Legal advice depends, to a large extent, upon the particular facts of a matter. For legal advice, contact your legal advisor.