Instructions For Form 1120-Pc - 2005 (Page 8 of 21) in pdf

Line 8d. Credit for prior year minimum

Line 11. Personal holding company

Note. For tax years ending after

tax. To figure the minimum tax credit and

tax. A corporation (other than a

December 31, 2005, the nonconventional

any carryforward of that credit, use Form

corporation described in section 542(c)) is

source fuel credit is a general business

8827, Credit for Prior Year Minimum

taxed as a personal holding company

credit included on Form 3800.

Tax — Corporations. Also see Form 8827

(PHC) under section 542 if:

Qualified electric vehicle (QEV) credit.

•

if any of the corporation’s 2004

At least 60% of it’s adjusted ordinary

Use Form 8834, Qualified Electric Vehicle

nonconventional source fuel credit or

gross income for the tax year is PHC

Credit, if the corporation can claim a

qualified electric vehicle credit was

income, and

credit for the purchase of a new qualified

•

disallowed solely because of the tentative

At any time during the last half of the

electric vehicle. Vehicles that qualify for

minimum tax limitation. See section 53(d).

tax year more than 50% in value of its

this credit are not eligible for the

outstanding stock is directly or indirectly

Line 8e. Bond credits. Enter the amount

deduction for clean-fuel vehicles under

owned by five or fewer individuals.

of any credit from Form 8860, Qualified

section 179A.

Zone Academy Bond Credit, or from Form

See Schedule PH (Form 1120), U.S.

Line 8c. General Business Credit

8912, Clean Renewable Energy Bond

Personal Holding Company (PHC) Tax,

Credit and Gulf Bond Credit. Check the

for definitions and details on how to figure

Enter on line 8c the corporation’s total

applicable box(es) and include the

the tax.

general business credit.

amount of the credit in the total for line

A foreign PHC (defined in section 552)

If the corporation is filing Form 8844,

8e.

must file Form 5471.

Empowerment Zone and Renewal

Line 10. Foreign corporations. A

Community Employment Credit; Form

Line 12. Other Taxes

foreign corporation carrying on an

6478, Credit for Alcohol Used as Fuel; or

insurance business in the United States is

Include any of the following taxes and

Form 8835 (see list below) with a credit

interest in the total on line 12. Check the

taxed as a domestic insurance company

from Section B; check the “Form(s)” box,

appropriate box(es) for the form, if any,

on its income effectively connected with

enter the form number in the space

used to compute the total.

the conduct of a trade or business in the

provided, and include the allowable credit

United States (see sections 864(c) and

Recapture of investment credit. If the

on line 8c.

897 for definition).

corporation disposed of investment credit

If the corporation is required to file

property or changed its use before the

Generally, any other U.S.-source

Form 3800, General Business Credit,

end of its useful life or recovery period, it

income received by the foreign

check the “Form 3800” box and include

may owe a tax. See Form 4255,

corporation is taxed at 30% (or at a lower

the allowable credit on line 8c. See the

Recapture of Investment Credit.

treaty rate) under section 881. If the

instructions for Form 3800.

corporation has this income, attach a

Recapture of low-income housing

schedule showing the kind and amount of

credit. If the corporation disposed of

If the corporation is not required to file

income, the tax rate, and the amount of

property (or there was a reduction in the

Form 3800, check the “Form(s)” box,

tax. Enter the tax on line 9. However, see

qualified basis of the property) for which it

enter the form number in the space

Reduction of section 881 tax, below.

took the low-income housing credit, it may

provided, and include on line 8c the

owe a tax. See Form 8611, Recapture of

Note. Interest received from certain

allowable credit from the applicable form

Low-Income Housing Credit.

portfolio debt investments that were

listed below.

issued after July 18, 1984, is not subject

Other. Additional taxes and interest

•

Investment Credit (Form 3468).

to the tax. See section 881(c) for details.

amounts can be included in the total

•

Work Opportunity Credit (Form 5884).

entered on line 12. Check the box for

See section 842 for more information.

•

Welfare-to-Work Credit (Form 8861).

“Other” if the corporation includes any

•

Minimum effectively connected net

Credit for Increasing Research

additional taxes and interest such as the

investment income. See section 842(b)

Activities (Form 6765).

items discussed below. See How to report

•

and Notice 89-96, 1989-2 C.B. 417, for

Low-Income Housing Credit (Form

on page 9, for details on reporting these

the general rules for computing this

8586).

amounts on an attached schedule.

•

amount. Also, see Rev. Proc. 2005-64,

•

Enhanced Oil Recovery Credit (Form

Recapture of qualified electric vehicle

2005-36 I.R.B. 492, for the domestic

8830).

(QEV) credit. The corporation must

•

asset/liability percentages and domestic

Disabled Access Credit (Form 8826).

recapture part of the QEV credit it claimed

•

investment yields needed to compute this

Renewable Electricity, Refined Coal,

in a prior year if, within 3 years of the date

amount.

and Indian Coal Production Credit (Form

the vehicle was placed in service, it

8835).

Any additional income required by

ceases to qualify for the credit. See

•

section 842(b) must be included in

Indian Employment Credit (Form 8845).

Regulations section 1.30-1 for details on

•

taxable income (for example, Schedule A,

Credit for Employer Social Security and

how to figure the recapture.

•

line 13).

Medicare Taxes Paid on Certain

Recapture of Indian employment credit.

Employee Tips (Form 8846).

Reduction of section 881 tax.

Generally, if an employer terminates the

•

Orphan Drug Credit (Form 8820).

Additional taxes resulting from the net

employment of a qualified employee less

•

New Markets Credit (Form 8874).

investment income adjustment may offset

than 1 year after the date of initial

•

Credit for Small Employer Pension Plan

a corporation’s section 881 tax on

employment, any Indian employment

Startup Costs (Form 8881).

U.S.-source income. The tax reduction is

credit allowed for a prior tax year because

•

Credit for Employer-Provided Childcare

determined by multiplying the section 881

of wages paid or incurred to that

Facilities and Services (Form 8882).

tax by the ratio of the amount of income

employee must be recaptured. For

•

Qualified Railroad Track Maintenance

adjustment to income subject to the

details, see Form 8845 and section 45A.

•

Credit (Form 8900).

section 881 tax, computed without the

Recapture of new markets credit (see

•

Biodiesel and Renewable Diesel Fuels

exclusion for interest on state and local

Form 8874).

•

Credit (Form 8864).

bonds or income exempted from taxation

Recapture of employer-provided

•

Low Sulfur Diesel Fuel Production

by treaty. See section 842(c)(2). Attach a

childcare facilities and services credit

Credit (Form 8896).

statement showing how the reduction

(see Form 8882).

•

Credit for Contributions to Selected

under section 881 was figured. Enter the

Interest on deferred tax attributable to

Community Development Corporations

net tax imposed by section 881 on line

certain nondealer installment obligations

(Form 8847).

10.

(section 453A(c)).

-8-

Instructions for Form 1120-PC

Instructions For Form 1120-Pc - 2005 Page 8

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