Form 25-121 - Tax Credit Transfer Affidavit Page 2
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1
2Form 25-121 (Back)(9-07)
INSTRUCTIONS
EXAMPLE of Maximum Annual Credit Allowed Determination:
Company A (certified investor) has $4 million in tax credits and is therefore entitled to use a maximum of $1
million in tax credits per year over 4 years. Company A is only able to use $500,000 in the first year of the
credits, but is allowed to roll the unused $500,000 forward to future years.
For the second tax year, Company A has a balance of $3.5 million in tax credits and is allowed to use a maximum
of $1 million in tax credits that year, except that it transfers $1 million in credits to Company B and $1 million in
credits to Company C. In the subsequent tax years, the total allowable credits are $1 million between the three
companies. Assuming that beginning in Year 2, the three companies use the maximum annual credit allowed,
the credits would be applied as follows:
MAXIMUM ANNUAL
COMPANY
CREDIT BALANCE
CREDIT ALLOWED
Year 2
A
$1,500,000
$ 333,334
($500,000 carries forward to future years)
B
$1,000,000
333,333
C
$1,000,000
333,333
$1,000,000
Year 3
A
$1,166,666
$ 333,334
B
$ 666,667
333,333
C
$ 666,667
333,333
$1,000,000
Year 4
A
$833,332
$ 333,332
B
333,334
333,334
C
333,334
333,334
$1,000,000
Year 5
A
$500,000
$ 500,000
(unused balance from year 1)
B
0
0
C
0
0
$ 500,000
Questions regarding submission of the Annual Notification of Credit Transfer or the Transfer Affidavit should
be directed to:
CAPCO PROGRAM ADMINISTRATOR
Phone: .................................... (512) 463-4124
FAX: ........................................ (512) 463-4368
Email: ........ greg.scheirman@cpa.state.tx.us
RETURN FORM TO:
STATE COMPTROLLER
111 E. 17th Street
Austin, TX 78774-0100
(800) 531-5441 ext 3-4124
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