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$40,000 or

Note. Any excess energy investment

12. If the taxable income of the

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The cooperative’s allowable exemption

credit, work opportunity credit, Indian

controlled group exceeds

amount (from Form 4626).

employment credit, empowerment zone

$100,000, enter this member’s

See Form 4626 for details.

or renewal community credit, employment

share of the smaller of: 5% of

credit, welfare-to-work credit, or new

the taxable income in excess of

Exemption for small corporations.

markets credit not used by the

$100,000, or $11,750. See

A cooperative is treated as a small

cooperative (because of the tax liability

instructions for line 2b . . . . . . .

corporation exempt from the AMT for its

limitation) must be passed through to the

tax year beginning in 2002 if that year is

patrons. These credits cannot be

13. If the taxable income of the

the cooperative’s first tax year in

controlled group exceeds $15

carried back or over by the

existence (regardless of its gross

million, enter this member’s

cooperative. See Forms 3468, 5884,

receipts) or:

share of the smaller of: 3% of

8844, 8845, 8861, and 8874 for details.

1. It was treated as a small

the taxable income in excess of

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Investment Credit (Form 3468).

corporation exempt from the AMT for all

$15 million, or $100,000. See

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Work Opportunity Credit (Form 5884).

prior tax years beginning after 1997 and

instructions for line 2b . . . . . . .

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Credit for Alcohol Used as Fuel (Form

2. Its average annual gross receipts

6478).

14. Add lines 8 through 13. Enter

for the 3-tax-year period (or portion

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Credit for Increasing Research

here and on Schedule J, line 3.

thereof during which the cooperative was

Activities (Form 6765).

in existence) ending before its tax year

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Note. Members of a controlled group

Low-Income Housing Credit (Form

beginning in 2002 did not exceed $7.5

must attach to form 990-C a statement

8586).

million ($5 million if the cooperative had

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showing the computation of the tax

Orphan Drug Credit (Form 8820).

only 1 prior tax year).

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entered on line 3.

Disabled Access Credit (Form 8826).

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For more details, see the Instructions

Enhanced Oil Recovery Credit (Form

Most cooperatives figure their tax by

for Form 4626.

8830).

using the Tax Rate Schedule below.

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Line 6a. Foreign tax credit. To find out

Renewable Electricity Production Credit

Exceptions apply to members of a

when a cooperative can take the credit for

(Form 8835).

controlled group (see the worksheet

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payment of income tax to a foreign

Indian Employment Credit (Form 8845).

above).

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country or U.S. possession, see Form

Credit for Employer Social Security and

1118, Foreign Tax Credit — Corporations.

Medicare Taxes Paid on Certain

Tax Rate Schedule

Employee Tips (Form 8846).

If taxable income on line 30, page 1,

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Line 6b. Other Credits

Credit for Contributions to Selected

Form 990-C is:

Community Development Corporations

Possessions tax credit. The Small

(Form 8847).

Business Job Protection Act of 1996

Over —

But not

Tax is:

Of the

•

over —

amount

Welfare-to-Work Credit (Form 8861).

repealed the possessions credit.

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over —

New Markets Credit (Form 8874).

However, existing credit claimants may

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Credit for Small Employer Pension Plan

$50,000

15%

qualify for a credit under the transitional

Startup Costs (Form 8881).

rules. See Form 5735, Possessions

50,000

75,000

$ 7,500 + 25%

50,000

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Credit for Employer-Provided Child

Corporation Tax Credit (Under Sections

75,000

100,000

13,750 + 34%

75,000

Care Facilities and Services (Form 8882).

936 and 30A).

100,000

335,000

22,250 + 39%

100,000

Line 6d. Credit for prior year minimum

335,000

10,000,000

113,900 + 34%

335,000

Nonconventional source fuel credit. A

tax. To figure the minimum tax credit and

10,000,000

15,000,000

3,400,000 + 35%

10,000,000

credit is allowed for the sale of qualified

any carryforward of that credit, use Form

fuels produced from a nonconventional

15,000,000

18,333,333

5,150,000 + 38%

15,000,000

8827, Credit for Prior Year Minimum

source. Section 29 contains a definition of

18,333,333

- - - - -

35%

Tax — Corporations.

qualified fuels, provisions for figuring the

credit, and other special rules. Attach a

Also see Form 8827 if any of the

Deferred tax under section 1291. If the

separate schedule to the return showing

cooperative’s 2001 nonconventional

cooperative was a shareholder in a

the computation of the credit.

source fuel credit, orphan drug credit, or

passive foreign investment company

qualified electric vehicle credit was

(PFIC), and the cooperative received an

Qualified electric vehicle (QEV) credit.

disallowed solely because of the tentative

excess distribution or disposed of its

Include on line 6b any credit from Form

minimum tax limitation. See section 53(d).

investment in the PFIC during the year, it

8834, Qualified Electric Vehicle Credit.

must include the total increase in taxes

Vehicles that qualify for this credit are not

Line 9. Other Taxes

due under section 1291(c)(2) in the

eligible for the deduction for clean-fuel

Include any of the following taxes and

amount entered on line 3, Schedule J. On

vehicles under section 179A.

interest in the total on line 9. Check the

the dotted line next to line 3, Schedule J,

Line 6c. General business credit. Enter

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

write “Section 1291” and the amount.

on line 6c the cooperative’s total general

used to compute the total.

business credit.

Do not include on line 3 any interest

Recapture of investment credit. If the

due under section 1291(c)(3). Instead,

cooperative disposed of investment credit

If the cooperative is filing Form 8844,

show the amount of interest owed in the

property or changed its use before the

Empowerment Zone and Renewal

bottom margin of page 1, Form 990-C,

end of its useful life or recovery period,

Community Employment Credit, or Form

and write “Section 1291 interest.” For

see Form 4255, Recapture of Investment

8884, New York Liberty Zone Business

details, see Form 8621.

Credit, for details.

Employee Credit, check the “Form(s)”

box, write the form number in the space

Recapture of low-income housing

Line 4. Alternative minimum tax (AMT).

provided, and include the allowable credit

credit. If the cooperative disposed of

Unless the cooperative is treated as a

on line 6c.

property (or there was a reduction in the

small corporation exempt from the AMT, it

qualified basis of the property) for which it

may owe AMT if it has any of the

If the cooperative is required to file

took the low-income housing credit, it may

adjustments and tax preference items

Form 3800, General Business Credit,

owe a tax. See Form 8611, Recapture of

listed on Form 4626, Alternative Minimum

check the “Form 3800” box and include

Low-Income Housing Credit.

Tax — Corporations. The cooperative

the allowable credit on line 6c. If the

must file Form 4626 if its taxable income

cooperative is not required to file Form

Other. Additional taxes and interest

(or loss) before the NOL deduction

3800, check the “Form(s)” box, write the

amounts may be included in the total

combined with these adjustments and tax

form number in the space provided, and

entered on line 9. Check the box for

preference items is more than the lesser

include on line 6c the allowable credit

“Other” if the cooperative includes any of

of:

from the applicable form listed below.

the taxes and interest discussed below.

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Instructions For Form 990-C - Farmers' Cooperative Association Income Tax Return - Internal Revenue Service - 2002 Page 16

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