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Credit for Alcohol Used as Fuel (Form

8827, Credit for Prior Year Minimum

cooperative, not the patron. See section

6478). For any tax year ending after

Tax – Corporations.

40(g)(6)(B)(iii) for how to figure the tax.

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October 22, 2004, the cooperative may

Recapture of allocation of low sulfur

Also see Form 8827 if any of the

allocate any or all of its small ethanol

diesel fuel production credit to patrons. If

cooperative’s 2003 nonconventional

producer credit to patrons. The

the amount of credit apportioned to any

source fuel credit, orphan drug credit, or

cooperative must attach a statement to

patron is decreased, there is a tax

qualified electric vehicle credit was

the Form 6478 making an election to

imposed on the cooperative, not the

disallowed solely because of the tentative

apportion the credit among the patrons.

patron. See section 45H(g)(3) for how to

minimum tax limitation. See section 53(d).

For more information on making the

figure the tax.

election, see section 40(g)(6)(A). The

Line 9. Other Taxes

How to report. If the cooperative

credit amount allocated to patrons cannot

checked the “Other” box, attach a

Include any of the following taxes and

be included in line 6c. For more

schedule showing the computation of

interest in the total on line 9. Check the

information on the credit and its

each item included in the total for line 9,

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

allocation, see the instructions for Form

identify the applicable Code section and

used to compute the total.

6478. For a tax associated with the

the type of tax or interest.

allocation to patrons, see Other below.

Recapture of investment credit. If the

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Line 10. Total Tax

Credit for Increasing Research

cooperative disposed of investment credit

Activities (Form 6765).

property or changed its use before the

Include any deferred tax on the

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Low-Income Housing Credit (Form

end of its useful life or recovery period,

termination of a section 1294 election

8586).

see Form 4255, Recapture of Investment

applicable to shareholders in a qualified

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Orphan Drug Credit (Form 8820).

Credit, for details.

electing fund in the amount entered on

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Disabled Access Credit (Form 8826).

line 10. See Form 8621, Part V and How

Recapture of low-income housing

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Enhanced Oil Recovery Credit (Form

to report, below.

credit. If the cooperative disposed of

8830).

property (or there was a reduction in the

Subtract any deferred tax on the

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Renewable Electricity and Refined Coal

cooperative’s share of undistributed

qualified basis of the property) for which it

Production Credit (Form 8835).

earnings of a qualified electing fund (see

took the low-income housing credit, it may

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Indian Employment Credit (Form 8845).

owe a tax. See Form 8611, Recapture of

Form 8621, Part II).

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Credit for Employer Social Security and

Low-Income Housing Credit.

How to report. If deferring tax, attach a

Medicare Taxes Paid on Certain

schedule showing the computation of

Other. Additional taxes and interest

Employee Tips (Form 8846).

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each item included in, or subtracted from,

amounts can be included in the total

Credit for Contributions to Selected

the total for line 10. On the dotted line

entered on line 9. Check the box for

Community Development Corporations

next to line 10, specify (a) the applicable

“Other” if the cooperative includes any

(Form 8847).

Code section, (b) the type of tax, and (c)

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additional taxes and interest such as the

Welfare-to-Work Credit (Form 8861).

the amount of tax.

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items discussed below. See How to

Biodiesel Fuels Credit (Form 8864).

report, below, for details on reporting

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New Markets Credit (Form 8874).

these amounts on an attached schedule.

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Credit for Small Employer Pension Plan

Schedule L

Recapture of the qualified electric

Startup Costs (Form 8881).

vehicle (QEV) credit. The cooperative

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Credit for Employer-Provided Childcare

must recapture part of the QEV credit

Balance Sheets per Books

Facilities and Services (Form 8882).

claimed in a prior year if, within 3 years of

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The balance sheet should agree with the

Low Sulfur Diesel Fuel Production

the date the vehicle was placed in

cooperative’s books and records. Include

Credit (Form 8896). The cooperative may

service, it ceases to qualify for the credit.

certificates of deposit as cash on line 1,

allocate any or all of its low sulfur diesel

See Regulations section 1.30-1 for details

Schedule L.

fuel production credit to patrons. The

on how to figure the recapture.

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cooperative must attach a statement to

Recapture of the Indian employment

Line 5. Tax-exempt Securities

the Form 8896 making an election to

credit. Generally, if an employer

Include on this line:

apportion the credit among the patrons.

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terminates the employment of a qualified

State and local government obligations,

For more information on making the

employee less than 1 year after the date

the interest on which is excludable from

election, see section 45H(g)(1). The credit

of initial employment, any Indian

gross income under section 103(a), and

amount allocated to patrons cannot be

employment credit allowed for a prior tax

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Stock in a mutual fund or other

included in line 6c. For more information

year because of wages paid or incurred to

Regulated Investment Companies (RIC)

on the credit and its allocation, see the

that employee must be recaptured. For

that distributed exempt-interest dividends

instructions for Form 8896. For a tax

details, see Form 8845 and section 45A.

during the tax year of the cooperative.

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associated with the allocation to patrons,

Recapture of new markets credit (see

see Other below.

Form 8874).

Line 24. Adjustments to

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Recapture of employer-provided

Shareholders’ Equity

Any excess investment credit,

childcare facilities and services credit

Some examples of items to report on this

work opportunity credit, Indian

(see Form 8882).

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line include:

employment credit, empowerment

CAUTION

Interest on deferred tax attributable to

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Unrealized gains and losses on

zone or renewal community employment

(a) installment sales of certain timeshares

securities held “available for sale.”

credit, welfare-to-work credit, or new

and residential lots (section 453(l)(3)) and

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Foreign currency translation

markets credit not used by the

(b) certain nondealer installment

adjustments.

cooperative (because of the tax liability

obligations (section 453A(c)).

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The excess of additional pension

limitation) must be passed through to the

Interest due on deferred gain (section

liability over unrecognized prior service

patrons. These credits cannot be carried

1260(b)).

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cost.

back or over by the cooperative. See

For tax years beginning after October

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Guarantees of employee stock (ESOP)

Forms 3468, 8844, 8845, 8861 and 8874

22, 2004, tax on income from notional

debt.

for details.

shipping income. See Income from

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Compensation related to employee

qualifying shipping activities on page 8.

Line 6d. Credit for Prior Year

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stock award plans.

Recapture of allocation of small ethanol

Minimum Tax

producer credit to patrons. If the amount

If the total adjustment to be entered on

To figure the minimum tax credit and any

of credit apportioned to any patron is

line 24 is a negative amount, enter it in

carryforward of that credit, use Form

decreased, there is a tax imposed on the

parentheses.

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Instructions For Form 990-C - Farmers' Cooperative Association Income Tax Return - Internal Revenue Service - 2004 Page 19

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