Instructions For C-8009 - Allocation Of Statutory Exemption, Standard Small Business Credit And Alternate Tax For Members Of Controlled Groups - 2006 Page 3
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3PART 4: Alternate Tax for Small Businesses
The alternate tax computation is a simplified way of
computing the SBT while still allowing a small
business credit. Calculate an alternate tax credit for
the group. Each member’s share of alternate credit is
based on the ratio of its tax liability before credits to
total combined tax liability before credits. Compute
tax using both the alternate tax and the standard small
business credit and file using the method that’s most
advantageous to the group. All members must use the
same method.
Line 16b, Reduced Credit. If the allocated income
after loss adjustment is more than $95,000 but not
more than $115,000 for any member of a controlled
group, multiply line 16a by the percentage from the
Reduced Credit Table on page 24 and enter the result
on line 16b.
Line 17, Tax After Alternate Small Business Credit.
Subtract line 16a or 16b, whichever is applicable, from
line 12 and enter the result on line 17.
PART 5: Standard Small Business Credit
Use this section to determine the group’s standard
small business credit. Calculate a combined credit
percentage for the group. This percentage is then used
to calculate each entity’s standard small business
credit.
Line 23b, Reduced Credit. If the allocated income
after loss adjustment is more than $95,000 but not
more than $115,000 for any member of the controlled
group, enter the percentage from the Reduced Credit
Table on page 24 and multiply line 23a by that
amount. Enter the result on line 23b.
Line 24, Tax After Small Business Credit. Subtract
line 23a or 23b, whichever is applicable, from line 22
and enter the result on line 24.
PART 6: Reduction Based on Excess Gross Receipts
Complete this section only if the combined gross
receipts are more than $9 million but not more than
$10 million. Annualize for tax periods less than 12
months.
PART 7: Alternate Tax or Tax After Standard Small
Business Credit
If claiming contribution credits, enter this amount on
Form C-8000C, line 27. If not, enter this amount on Form
C-8000, line 45.
Remember: The group must choose either the
alternate tax or the standard small business credit. All
members must use the same calculation.
Attach this schedule to the return.
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