Form 4893 - Corporate Income Tax Small Business Alternative Credit

cure a shareholder’s allocated income disqualifier, enter on line

if that UBG includes a member from which the allocated

12 the number from Form 4895, line 12.

income after loss adjustment of a shareholder is $200,000. The

reduction percentages for the credit also apply to the entire

Line 13: For a taxpayer whose shareholders and officers all

group if they apply to one member.

have allocated income after loss adjustment of $160,000 or

For more information on UBGs, see the “Supplemental

less, enter 100 percent. All other taxpayers, see the table at

Instructions for UBGs” in Form 4890.

the bottom of page 1 of this form to determine what percent to

enter on this line.

Line-by-Line Instructions

Line 14: All taxpayers must complete this line. Multiply Line

Lines not listed are explained on the form.

11 by the percentage on Line 13 and enter that amount on this

Name and Account Number: Enter name and account number

line.

as reported on page 1 of the CIT Annual Return (Form 4891).

If gross receipts from line 1 are $19,000,000 or less, carry the

UBGs: Complete one form for the group. Enter the Designated

amount on line 14 to Form 4891, line 38.

Member (DM) name in the Name field and the DM account

Reduction Based on Gross Receipts

number in the Federal Employer Identification Number (FEIN)

Complete this section if gross receipts on Line 1 are more than

field.

$19,000,000 but not more than $20,000,000.

Line 1: Enter amount from Form 4891, line 10. For a tax year

Line 17: For a result less than zero, enter zero.

less than 12 months, enter annualized gross receipts to see if

annualized gross receipts exceed $19,000,000 but are not more

Include completed Form 4893 as part of the tax return filing.

than $20,000,000. For guidance, see the “Annualizing” section

at the beginning of these instructions.

UBGs: All UBG filers will use the amount from Form 4891,

line 10. For UBGs including members with tax years less than

12 months, line 10 reflects the annualized amounts for all

members for the purpose of completing Form 4893.

Adjusted Business Income

Line 3: Enter business income from Form 4891, line 18.

NOTE: The adjusted business income (ABI) disqualifier is

based on annualized ABI, but the credit calculations performed

here are based on actual ABI.

UBGs: Combine all business income for all members from CIT

Data on Unitary Business Group Members (Form 4897), line

23.

Line 4: Enter, to the extent deducted in determining federal

taxable income (as defined for CIT purposes), a carryback or

carryover of a capital loss from Schedule D of federal Form

1120. Enter as a positive number.

UBGs: Combine for all members all carryback or carryover

of a capital loss, to the extent deducted in determining federal

taxable income (as defined for CIT purposes), and enter on line

4. Enter as a positive number.

Fiscal Year Filers: Line 7 and line 8: Compensation and

Directors Fees. Officers and active shareholders will be

reported on an actual basis on lines 7 and 8, regardless of the

method selected for the tax calculation.

Small Business Alternative Credit Calculation

Line 12: The Small Business Alternative Credit is reduced

if a shareholder or an officer has allocated income after loss

adjustment of more than $160,000 but not more than $180,000.

This reduction is based on the officer/shareholder with the

largest allocated income. Enter the allocated income of the

shareholder or officer with the highest allocated income after

loss adjustment, even if that figure is $160,000 or less.

If loss adjustment is successfully applied to fully or partially

Form 4893 - Corporate Income Tax Small Business Alternative Credit - 2012 Page 4

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