Vermont Business Income Tax Return Instructions (For Subchapter S Corporations, Partnerships, And Limited Liability Companies)

Line L Check the box if Sec. 5920(f) or Sec. 5920(g) exemptions

Lines 11, 12, and 13. (Composite Filers Only)

from nonresident estimated payments for affordable housing or

(Estimated payments and credits usually pass through to the

federal new market credits apply. Attach authorization document

owners. For a composite filing, they are credited against tax due

from the applicable program.

at the entity level).

Signature Section

Line 11 Enter the amount of payments from nonresident real estate

The return must be signed by an officer or agent of the entity and

withholding (from Form RW-171, Schedule A) paid by another

the preparer. Please make you check payable to the Vermont

entity on behalf of this one, to be credited against composite tax

Department of Taxes. Please write your FEIN number on your

liability.

check and clip your check to the front of your return. Please do not

Line 12 Enter the amount of estimated tax payments made for

staple the check to your return.

you by a pass‑through entity of which you are a nonresident

Send Form BI-471, the first 5 pages of the federal return, and all

shareholder, partner, or member, to be credited against composite

supporting Vermont schedules and statements to the address listed

tax liability (This would be a payment made by another entity on

below. If authorizing the Department of Taxes to discuss this return

your behalf using Form WH-435. That entity’s BI‑471 must have

and attachments with your preparer, check “Yes” for this question.

been processed by the Department in order for credit to be applied

This will not authorize the Department of Taxes to discuss the filing

properly,)

status of the shareholders, partners or members. Each individual

Line 13 Enter the total amount of Vermont tax credits applied.

must authorize such disclosure.

Attach Form BA‑404. This line is only for those entities filing a

Notes on Pass-through Tax Credits:

composite return and reporting the portion of those credits for those

Unless a composite return is being filed, credits are passed through to

nonresidents who have consented to be included in this composite

filing. Credits can be applied to offset a maximum of 80% of

the shareholders, partners, or members and reported on the Schedule

K‑1VT and Form BA‑404. Credit calculation schedules and credit

tax liability, and generally may not reduce tax beneath the $250

allocation schedules must be attached to the return, along with any

minimum entity tax. Include Form BA‑404 and all documentation

other documentation required by the credit program. The credit

required by the credit program in which you participate. See the

amounts available are generally limited to 80% of the taxpayer(s)

additional notes regarding credits below.

Vermont tax on the Schedule K‑1VT income only, excluding wages

Line 14 Add Lines 9 and 10 and 11, 12, and 13, if a composite filer.

received from the entity. The credit available is calculated as follows:

Line 15 Use this line only if filing a composite return. Enter the

Divide the Schedule K‑1VT net income by the individual’s Vermont

adjusted gross income (VT AGI). Multiply the results by the

total estimated payments made for all nonresidents of Vermont

who have consented to be included in this composite filing. These

individual’s pre‑credit Vermont income tax and then multiply that by

80%. The result is the individual’s available credit from all sources.

payments would have been made with Form(s) WH‑435 indicated

These credits can be applied against 80% of the entity’s composite

as composite.

tax liability but may not reduce the liability below the minimum

Line 16 Total payments and credits. Add Lines 14 and 15. Enter

entity tax. The Downtown Development Board {(802) 828‑3047}

the total here and on Side 1, Line 6.

authorizes tax credits for facade and code compliance work on

older or historic buildings and for the installation of platform lifts,

Line 17 If the business had non‑Vermont‑resident owners, enter the

elevators, or sprinkler systems for qualified buildings located

total amount paid as nonresident estimated payments for the current

within Designated Downtown districts. For buildings located

tax year, including any catch‑up payment, if applicable. Include

within designated Village Centers, the Downtown Development

any amount paid towards composite tax liability. Also include any

Board authorizes tax credits for the Sustainable Rehabilitation

amount of nonresident estimated payments made by another entity

of Certified Historic Buildings and for Code Improvements to

on your company’s behalf. If such payments were made, include a

Commercial Buildings. The Vermont Housing Finance Agency

statement indicating the name(s) and FEIN(s) of the company(ies)

{(802) 864‑5746} authorizes the Affordable Housing incentives.

that made the payment(s), and the amount of payment(s).

Claiming these non‑EATI credits, as well as the Business Solar

Line I Enter the total number of shareholders, partners or members

Energy Investment credit, requires a credit calculation schedule,

receiving a distributive share of income or loss.

a credit allocation schedule, a copy of the original authorizing

Line J Of the above, how many are Vermont residents? (See TB‑05

document (as applicable), and substantiating documentation which

and TB‑06 for residency guidelines for entities.)

must be attached to the return. See the instructions for Form BA‑404

for more guidance. The VT Department of Taxes has final authority

Line K How many are non‑Vermont residents?

in applying any credits against tax liability. Call (802) 828‑5723 if

you have questions regarding credit calculations or requirements.

Contacting the Department

Mailing address:

Taxpayer Services: (802) 828‑5723

Email Address:

tax-corpincome@state.vt.us

Vermont Department of Taxes

Web Site Address:

133 State Street

Fax:

(802) 828‑5787

Montpelier, VT 05633-1401

Forms:

(802) 828‑2515

Vermont Business Income Tax Return Instructions (For Subchapter S Corporations, Partnerships, And Limited Liability Companies) - 2012 Page 4

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