Form Ct-38 - Minimum Tax Credit - 2011 (Page 2 of 2) in pdf

Page 2 of 2

CT-38 (2011)

Instructions

Temporary deferral of certain tax credits

Line 7 — Multiply line 4 by the investment allocation percentage

from Form CT-3-ATT, Schedules B, C, and D — Attachment to

For tax years beginning on or after January 1, 2010, and before

Form CT-3, or CT-3-A.

January 1, 2013, if the total amount of certain credits that you

may use to reduce your tax or have refunded to you is greater

Line 9 — Enter the amount from Form CT-3, line 23, or

than $2 million, the excess over $2 million must be deferred

Form CT-3-A, line 23, column E.

to, and used or refunded in, tax years beginning on or after

Schedule A, Part 2 – Computation of adjusted

January 1, 2013. For more information about the credit deferral,

minimum tax

see Form CT-500, Corporation Tax Credit Deferral.

The adjusted minimum tax is the excess of the amount of the

If you are subject to the credit deferral, you must complete all

minimum tax over the next largest tax computed for the tax

credit forms without regard to the deferral. However, the credit

year. The next largest tax means the largest amount based

amount that is transferred to your tax return to be applied

on the ENI, capital, or fixed dollar minimum tax bases. You

against your tax due or to be refunded to you may be reduced.

must reduce this amount by the excess, if any, of the modified

Follow the instructions for Form CT-500 to determine the

minimum tax over the next largest tax.

amounts to enter on your tax return.

Schedule B – Computation of available minimum

General information

tax credit

The minimum tax credit is generated in those years when the

You may use the minimum tax credit to reduce your franchise

largest tax is based on the minimum taxable income (MTI)

tax only if the tax is based on ENI. The amount of credit is

base, and may be claimed in a subsequent year when your

the adjusted minimum tax computed for all prior years, minus

tax is based on the entire net income (ENI) base. The credit is

any amount used as a minimum tax credit in prior years. Use

designed to prevent the double taxation that might otherwise

lines 19 and 20 to compute the available minimum tax credit.

arise because of the inclusion of timing items of tax preference

and adjustment in both the MTI and ENI bases but in different

Line 19 — The amount of minimum tax carryforward is the total

tax years. The minimum tax credit for any tax year is the

amount of the adjusted minimum tax calculated in prior years

amount, if any, that the adjusted minimum tax imposed for

minus any amount used as a minimum tax credit in prior years.

all prior tax periods beginning after 1989 exceeds the amount

allowed as a minimum tax credit, that was deducted from the

Line 20 — If your tax due is based on the minimum taxable

taxpayer’s tax for such prior years.

income, add lines 18 and 19. Do not complete lines 21 through

28. Enter this amount on line 29.

If your tax due this year is based on the MTI base, complete

Schedule A, Parts 1 and 2, Schedule B, and Schedule D to

If your tax due is based on ENI, enter the line 19 amount and

compute the minimum tax credit generated this year and carried

continue with lines 21 through 29.

forward to future years.

Schedule C – Computation of minimum tax credit

If your tax due this year is based on the ENI base, and your

used

tax in a prior year was based on the MTI base, complete

Line 21 — Enter the amount from Form CT-3, line 78, or

Schedules B, C, and D to compute the minimum tax credit used

Form CT-3-A, line 77, plus any net recaptured tax credits.

this year and carried forward to future years.

Line 22 — If you are claiming more than one tax credit for

If your tax due this year is based on the fixed dollar minimum

this tax year, enter the amount of tax credit(s) claimed before

tax or the capital base tax, complete line 29 to compute the

the minimum tax credit. Refer to Form CT-600, Ordering of

minimum tax credit carried forward to future years.

Corporation Tax Credits; otherwise enter 0 on line 22.

Combined filers: Lines 1 through 29 should be read as if the

Line 27 — If line 26 is less than line 23, subtract line 26 from

terms were on a combined return, Form CT-3-A. For example:

line 23 and enter the result here. Otherwise, enter 0; you cannot

the reference to entire net income on line 1 should be read by

use any minimum tax credit this year.

the combined filer as combined entire net income.

Line 28 — Enter the lesser of line 20 or line 27.

Line instructions

If your total credits from all sources are $2 million or less, enter

Schedule A, Part 1 – Computation of modified

the amount from line 28 on your franchise tax return.

minimum tax

If your total credits from all sources are more than $2 million,

The modified minimum tax is the minimum tax recomputed

you may be subject to the temporary credit deferral. Complete

excluding those adjustments and tax preference items related

line 28 but do not enter the amount from line 28 on your

to timing differences. The only adjustment or tax preference

franchise tax return. See Form CT-500 to determine the proper

item you may take into account is depletion.

amounts to enter on your franchise tax return.

Line 1 — Enter the amount from Form CT-3, line 17 or

Schedule D – Minimum tax credit carried forward

Form CT-3-A, line 17, column E.

Line 2 — Enter the amount from Form CT-3, line 52 or

Line 29 — If your tax due is based on MTI, enter the line 20

Form CT-3-A, line 52, column E.

amount. If your tax due is based on ENI, subtract line 28 from

line 20. If your tax due is based on fixed dollar minimum tax or

Line 4 — Enter the amount from Form CT-3, line 18 or

the capital base tax, enter the amount of minimum tax credit

Form CT-3-A, line 18, column E.

carryforward from the prior year’s Form CT-38.

Line 6 — Multiply the amount on line 5 by the business

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allocation percentage from Form CT-3 or CT-3-A.

See Form CT-1, Supplement to Corporation Tax Instructions.

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Form Ct-38 - Minimum Tax Credit - 2011 Page 2

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