​Below is a list of information needed for the R&D tax credit application:

• Entity Type (Individual or Business)
• Entity ID Number
• Entity Name
• Business Address
• Phone Number
• ​Federal Form 6765 (If filed with the IRS)
• R&D Expenditures by Location
• PA Employer Withholding ID number if you have direct wages.
• Information on any subcontractors employed in the R&D activity.
• Ownership Information (Name, Address, SSN, Ownership %)
• Officer Information (Name, Address, SSN)

​Federal Form 6765

The following information must be provided. It can be obtained via information on Federal Form 6765.

• ​Wages for Qualified Service
• Cost of Supplies
• Rental or Lease Costs of Computers
• Applicable Percentage of Contract Research Expenses

If you don’t complete Form 6765 you still need to provide the information requested.

R&D Expenditures by Location

The following information must be provided for each Pennsylvania-based project being used to apply for the R&D tax credit. Only include information for years in which the entity had actual qualified R&D expenditures.

• Project Name
• Address
• Direct Wages Paid
• Subcontracted Labor and Supplies
• Supplies and/or Computer Rental Costs
• PA Expenditures Located in a KOZ
• Project Description (see below)

TIP: If you receive the error message:

This should be equivalent to Total Qualified Research Expenses on Federal Form 6765.

Check that the Project Expenditure and Non-PA Expenditures amounts are correct. Check the amounts on the prior page where information was entered for Federal Form 6765. (PA Project Expenditures + Non-PA Expenditures = Total Qualified Research Expenses [FF6765])

Project Description

Elimination of Uncertainty
Describe in detail how you have attempted to eliminate uncertainty about the development of a product or process improvement.

Process of Experimentation
Describe in detail how you have evaluated alternatives for achieving your desired result. Describe in detail your method of experimentation including modeling, simulation, systemic trial and error, or other methods.

Technological in Nature
Describe in detail your process of experimentation and how it relies on engineering, physics, chemistry, biology, or computer science.

Qualified Purpose Information
Describe in detail what new or improved product or process you created. Describe in detail the resulting increased performance, function, reliability, or quality.

Direct Wages

Definition: Monetary amounts paid to its employees for R&D-related work.

If you indicated you have direct wages, the following information will be required to specify the entity for which direct wages are reported and paid:

• PA Employer Withholding ID number
• Federal Employer Identification Number (FEIN)

HINT: If your application will not let you progress forward, double-check that you entered the PA Employer Withholding Account ID number and FEIN/SSN correctly. Once you are sure everything is correct and you still cannot proceed, please save the application, and contact the Department of Revenue (see Assistance).

Third-Party/Subcontractor Labor Costs

Definition: Monetary amounts paid by the applicant to Third-Party/Subcontractors for R&D-related work.

If you answered YES to having subcontractors, you MUST provide the following for each entity:

• Subcontractor/Employer Name
• FEIN
• Did applicant issue 1099-Misc/W-2
• Amount paid
• Phone Number

If this information is not provided, your application may be rejected or experience processing delays.

TIP: The total amount should be equal to the amount provided under the third-party/subcontractor labor and supplies line that you entered in the R&D Expenditures by Location section.

Reminder: The department only needs a record of who was paid. Example: If three companies employed 100 subcontractors and the checks were made to the three companies, then the department only needs the information for the three companies that were paid. However, if the 100 subcontractors were independently paid, the department requires their information to be entered into the online system.

Prior Years’ Expenditures

The following information must be provided for each Pennsylvania-based project being used to apply for the R&D tax credit. You must enter tax years from oldest to most recent and include at least one and no more than 4 prior expenditures:

• Project Name
• Address
• Direct Wages Paid
• Subcontracted Labor and Supplies
• Supplies and/or Computer Rental Costs
• PA Expenditures Located in a KOZ
• Project Description (see Project Descriptions)

Ownership Information

All applicants will be checked for entity and ownership compliance. All persons or businesses with a 20 percent or greater ownership in the entity must be disclosed.

• FEIN
• Business or Individual Name
• Relationship
• Address
• Ownership Percentage

Signature and Verification

To complete the application, you will need to provide the following information on an Officer of the applicant.

• Officer Name
• Title
  
• SSN/FEIN
• Phone Number
• Address​​
  

​A partially completed application can be saved and completed later within 30 days. Once an application is submitted, it can only be changed before 10 PM on the same day as submission. After this time, applications cannot be changed or amended. If there is an error you must contact the department via the myPATH Send a Message feature, using message subtype “R&D Tax Credit Application Questions”.

​Saved applications are found under Search Applications. Click the link in the confirmation number column. Click the Continue Editing link – this will always start you at the beginning of the application pages. Click Next to return to where you left off.

Reminder: A saved application will automatically be deleted if there is no activity after 30 days.

​The department will send award and/or denial letters to applicants; however, you can check the status of the application by logging into myPATH​ and using the Search Application hyperlink on the Applications panel.

Applicants may see any of the statuses listed below:

• In Processing: Application is under review.
• Correspondence: Review underway and a letter was sent requesting additional information.
• Review Complete: Internal review concluded.
• Credit Awarded: Review complete and credit has been issued.
• Rejected: Application denied.
• Withdrawn: Applicant chose to withdraw application.

​Incorrectly entering the address: Do not use abbreviations. Check for typos. Try changing to a multi-line view in the address pop-up window and re-enter the information.

Not submitting the necessary attachments: Small businesses must include the balance sheet showing total assets of less than $5 million at the beginning of the year. If there is a difference between this year’s expenditures and prior fillings, a written explanation is necessary.

Not enough information in the project description: The four questions related to the project description must be completed in detail. This is used to determine if the project qualifies for the tax credit.

Not providing the proper FEIN/SSN: Ensure that you are including the FEIN/SSN for Third-Party/Subcontractors and Vendors.

Not properly classifying expenditures: Improperly including Third-Party/Subcontractors expenditures as direct wages could cause issues with your application.

​For assistance with completing the new Research & Development tax credit application:

• ​myPATH Send a Message – If you have specific questions, contact the department via myPATH​ Send a Message feature using the message subtype: “R&D Tax Credit Application Questions.”

Questions on credits previously awarded within the program or credits obtained via sale or assignment may be directed to the Department of Revenue at ra-rvtaxcredits@pa.gov or 717-772-3896.