Commonwealth Court Upholds EIT Super Credit

On January 7, 2013, the Commonwealth Court upheld the longstanding "super credit" system in a decsion with implications for a number of Berks County taxpayers.  See Berks Cty. Tax Coll. Comm v. Pa. Dep't of Community and Econ. Dev., No. 378 M.D. 2012 (Pa. Commw. Ct., Jan. 7, 2013).  The super credit applies to taxpayers living outside Philadelphia that maintain two jobs - one inside Philadelphia city limits, and another outside.  (The same principal applies to taxpayers working from separate offices within the same company - i.e., Philadelphia and a suburban office.)  Historically, these taxpayers have used Philadelphia's hefty city wage tax as a credit to offset their local tax liability, oftentimes eliminating the need to pay an earned income tax ("EIT") to their local municipality and school district.