Hi,
My main job is to save you tax and provide as much value as possible. With this in mind, we worked out a summary of Pennsylvania-specific credits and deductions that you may have overlooked.
If you have questions about any of these, just reply back and we can either schedule a call or go into more detail for you over email.
Credits for Individuals:
- $2,100 for 2 or more children is Child and Dependent Care Enhancement Tax Credit. Pennsylvania offers a refundable credit tied to the federal Child and Dependent Care Credit, which can be very valuable for families with childcare or dependent care expenses
- Property Tax/Rent Rebate Program – Eligible seniors, widows/widowers, and individuals with disabilities may qualify for a rebate of up to $1000 based on rent paid or property taxes
- Working Pennsylvanians Tax Credit👷: A new credit for low/moderate-income earners, mirroring the federal EITC, worth 10% of the federal credit
Credits for Homeowners & Energy Efficiency:
- Energy Efficiency & Clean Energy Incentives – While Pennsylvania does not offer broad refundable income tax credits for energy efficiency, residents may qualify for state, utility, and local rebates for solar installations, energy-efficient appliances, and home upgrades
- Solar Renewable Energy Credits (SRECs) – Homeowners with qualifying solar installations may earn ongoing SREC income at the state level
Credits for Businesses:
- Research & Development (R&D) Tax Credit – Businesses conducting qualified R&D activities in Pennsylvania may qualify for a state R&D credit, which may be sold or assigned if unused
- Up to $100,000 per year as Keystone Opportunity Zone (KOZ) Tax Credit – Businesses operating in designated zones may qualify for significant state and local tax reductions or eliminations
- Work Opportunity Credit (State Alignment) – Pennsylvania employers may benefit from coordination with the federal Work Opportunity Tax Credit when hiring from targeted groups
- Malt Beverage Tax Credit: For manufacturers, credits based on capital investments in new equipment, capped at $200,000 annually
Deductions & Exclusions:
- Retirement Income – Pennsylvania does not tax retirement income, including pensions, 401(k)s, IRAs
- Social Security Benefits – Fully exempt from Pennsylvania income tax
Let’s hop on a quick 10 -15 minute call to see which one of these credits applies to you! Please contact us by early next week to make sure we secure a spot before the tax season heats up.
Sincerely,
—
George Dimov, CPA
Licensed and Insured
(833) 829-1120 toll free
(212) 994-8081 Fax
www.dimovtax.com