Form Il-477 - Replacement Tax Investment Credits (Page 3 of 4) in pdf

Form IL-477 Instructions

General Information

What if I need additional assistance?

If you need additional assistance,

Complete this form if you are a corporation, S corporation,

• visit our website at tax.illinois.gov;

partnership, trust, or exempt organization subject to replacement tax

and are entitled to a replacement tax investment credit.

• write to us at P.O. Box 19044, Springfield, Illinois 62794-9044;

If you are filing an Illinois combined unitary return, complete one

• call our Taxpayer Assistance Division, at 1 800 732-8866 or

217 782-3336; or

Form IL-477, Replacement Tax Investment Credit, for the entire

combined group.

• call our TDD (telecommunications device for the deaf) at

1 800 544-5304.

For tax years ending on or after December 31, 2000,

Our office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday.

investment credits earned by you and allocable to your partners and

shareholders subject to replacement tax automatically flow through

Specific Instructions

to those partners and shareholders. The amount allocable to other

Step 1— Figure your Replacement Tax

partners and shareholders remains with you.

Investment Credit for qualified property

How do I qualify for a credit?

placed in service during the tax year

You may take this credit if you

Lines 1a through 1c —

Follow the instructions for each column.

• placed qualified property in service in Illinois within the tax year,

Column A —

• continue to use the qualified property on the last day of your tax

Describe each item of qualified property you placed

in service in Illinois.

year, and

• are primarily (more than 50 percent) engaged in manufacturing,

Column B —

Write the date, including month and year, each item

mining coal or fluorite, or retailing.

of qualified property was placed in service in Illinois. An item is

placed in service on the earlier of

This credit includes

• an amount equal to .5 percent (.005) of the basis of qualified

• the date the item is placed in a condition or state of readiness

property placed in service in Illinois during your tax year, and

and availability for its specifically assigned function, or

• the date the item is placed in service for purposes of the federal

• an additional credit of up to .5 percent (.005) of the basis of

depreciation deduction. Improvements to a qualified property are

qualified property placed in service during your tax year, if your

placed in service, for purposes of this credit, on the date the

Illinois base employment increased over the preceding year, or if

improvements are placed in service for the federal depreciation

your business is new to Illinois.

deduction.

The date placed in service in Illinois must be written in

“Qualified property” is property that

Column B or your basis in Column G will be reduced to zero.

•

is tangible;

•

Column C —

If you are using the modified accelerated cost

is depreciable according to IRC Section 167;

•

recovery system, (MACRS) to depreciate the property, write the

has a useful life of four or more years as of the date placed in

MACRS class assigned to each item of qualified property. Property

service in Illinois; and

assigned to a MACRS class of less than four years is not qualified

•

is acquired by purchase as defined in IRC Section 179(d).

property.

Qualified property can be new or used but does not qualify for the

If you are not using the MACRS method to depreciate the property,

Replacement Tax Investment Credit if it was previously used in

write the useful life assigned to the property for federal depreciation

Illinois in a manner that qualified for that credit or for the Enterprise

purposes. The useful life of the property, when placed in service,

Zone or River Edge Redevelopment Zone Investment Credit

must be four or more years to qualify.

on Illinois Schedule 1299-A or 1299-D. Such property includes

Column D —

buildings, structural components of buildings, and signs that are

Indicate whether each item of qualified property

real property. It does not include land or improvements to real

is new or used. If the property was previously used, write the

property that are not a structural component of a building, such

abbreviation of the state where the property was located.

as landscaping, sewer lines, local access roads, fencing, parking

Column E —

Indicate your primary business activity. Write the

lots, and other appurtenances.

corresponding number of the following functions on the line.

Any improvement or addition made after the property is placed

• 1

retailing

• 2

—

manufacturing

in service is considered to be qualified property to the extent

• 3

coal mining

• 4

—

fluorite mining

that the improvement or addition increases the adjusted basis of

the property, and otherwise meets the requirements of qualified

Column F —

Write the municipality or county, if the area is

property.

unincorporated, where each item of qualified property was used.

Page 3 of 4

IL-477 (R-12/12)

Form Il-477 - Replacement Tax Investment Credits Page 3

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