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Page 4 CT-47-I (1998)

Example 2: You discontinue farming during 1998, but

(a) Enter the amount from Form CT-3, line 78, or Form CT-3-A,

continue to hold the farm property for investment

line 77 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

purposes. This is not a conversion to nonqualiﬁed use.

(b) Enter any other tax credits used (from Form CT-3, line 100,

or CT-3-A, line 101). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Example 3: You sell qualiﬁed agricultural property to

another person who continues to use the property in

(a), enter zero) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

agricultural production. This is not a conversion to

(d) Enter the amount from Form CT-3 or CT-3-A, line 71 or 74,

whichever is larger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

nonqualiﬁed use.

(e) Subtract line (d) from line (c) (if line (d) is greater than line

(c), enter zero) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II - Computation of Credit

Line 1 - Enter the total acres of qualiﬁed agricultural

Enter on line 20 the lesser of: 1) the amount on line (e)

above, or 2) the amount shown on line 19. Include this

property owned by you during 1998. Be sure to include the

result on Form CT-3, line 100; or Form CT-3-A, line 101.

number of acres under buildings or structures that are

qualiﬁed agricultural property.

Line 22 - Enter that portion of line 21 that you wish to carry

forward.

If you checked the box at item F, do not include on line 1

the acres of property converted to nonqualiﬁed use.

Line 23 - Subtract line 22 from line 21. To avoid the

unnecessary exchange of funds, reduce this amount by any

Line 2 - Enter the corporate partner’s share of qualiﬁed

unpaid balance you owe on your franchise tax and MTA

agricultural property.

surcharge liability. Include this result on Form CT-3, line 99;

or Form CT-3-A, line 100.

Line 4 - If you did not check box E in Part I, enter 250 on

Part III Credit Recapture

line 4. If you did check box E in Part I, you must allocate

the 250 base acres among yourself and the other related

If all of your qualiﬁed property is converted to nonqualiﬁed

parties. The base acres must be divided equally between

use (see item F on page 3) before the end of the second

the parties unless you all agree to a different division. If you

tax year following the year in which you ﬁrst claimed a

all agree, you may divide the base acres in any manner

credit, the entire credit you claimed on the converted

you wish. If you elect an unequal division, you must attach

property in the two previous years must be added back in

a statement to Form CT-47, setting forth the following

the year of conversion. If only a portion of the qualiﬁed

information:

agricultural property is converted to nonqualiﬁed use, a

proportionate share of the credit claimed must be added

– the name, address and taxpayer identiﬁcation number of

back.

the related person(s) and

For conversions during the 1998 tax year, the addback

– the amount of base acreage allocated to you and the

applies only to credit claimed in the 1997 tax year, since

related person(s).

1997 was the ﬁrst tax year for which the credit could be

claimed.

The statement must be signed by you, and by the related

Example 1: A farmer ﬁrst claims the credit for tax year

person(s) or by any person who is duly authorized to act on

1997. On August 1, 1998, all of the farmer’s qualiﬁed

behalf of the related person(s).

agricultural property is converted to nonqualiﬁed use. In this

Line 9 - Enter the eligible school taxes paid by you in 1998.

instance, no credit will be allowed for 1998, and the entire

amount of the credit claimed for 1997 must be added back

Line 10 - Enter the partner’s share of eligible taxes paid by

in 1998.

a partnership.

Example 2: A farmer ﬁrst claims the credit for tax year

1997. On June 1, 2000, the entire property is converted to

If you checked the box at item F, do not include on lines 9

nonqualiﬁed use. In this instance, no credit is allowed for

or 10 the school taxes paid during the year on property that

the year 2000. However, since the conversion takes place

was converted to nonqualiﬁed use.

after the end of the second year (1999) following the year

in which the credit was ﬁrst claimed (1997), the farmer is

If you continue to own the property after the conversion to

not required to add back the credit claimed in 1997 or

nonqualiﬁed use, and the converted property is included as

1998.

part of your total tax bill, you may allocate the total taxes to

Example 3: A farmer ﬁrst claims the credit for tax year

the converted property on the basis of the amount of

1997. The credit is based on 500 acres of qualiﬁed

acreage converted to the total acreage covered by the tax

agricultural property owned by the farmer. On September 1,

bill.

1998, 100 acres of that property is converted to

nonqualiﬁed use. In this instance, a credit will be allowed

If the converted property is sold, the closing documents will

for 1998 based on the 400 acres of qualiﬁed agricultural

show the amount of school taxes reimbursed to you by the

property not converted to nonqualiﬁed use, and one-ﬁfth

buyer. You must reduce your current year’s eligible taxes by

(100/500) of the credit claimed in 1997 must be added back

the amount of these reimbursed taxes in determining the

in 1998.

credit.

Line 24 Column Instructions

Line 13 - If line 13 is more than $100,000, your credit is

Column A - Enter the total acres of qualiﬁed property

limited.

converted to nonqualiﬁed use in 1998.

Column B - Enter the total acres of qualiﬁed agricultural

Line 20 - If the tax due before credits on Form CT-3, line

property you owned immediately prior to the conversion.

78, or Form CT-3-A, line 77, is equal to the tax on the

Column D - Enter the total farmers’ school tax credit

minimum taxable income base or the ﬁxed dollar minimum

claimed in 1997.

tax, enter zero (‘0’). Otherwise, complete the following

worksheet:

Column E - Transfer the column E amount to line 18.

Form Ct-47-I - Instructions For Form Ct-47 - Claim For Farmers' School Tax Credit - 1998 Page 4

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