Vermont Business Income Tax Return Instructions

Line 11 Enter the amount of payments from nonresident real estate

Send Form BI-471, the first 4 pages of the federal return, and all

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

supporting Vermont schedules and statements to the address listed

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

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

liability.

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

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

Line 12 Enter the amount of 2011 estimated tax payments made

status of the shareholders, partners or members. Each individual

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

must authorize such disclosure.

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

Notes on Pass-through Tax Credits:

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

your behalf using Form WH-435.)

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

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

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

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

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

composite return and reporting the portion of those credits for those

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

nonresidents who have consented to be included in this composite

other documentation required by the credit program. The credit

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

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

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

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

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

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

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

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

additional notes regarding credits below.

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

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

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

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

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

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

tax liability but may not reduce the liability below the minimum

total estimated payments made for all nonresidents of Vermont

entity tax. For each Economic Advancement Tax Incentive (EATI)

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

credit earned, a credit calculation schedule, a credit allocation

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

schedule, a copy of the original authorizing document, and a copy

as composite.

of the EATI Annual Activity Report must be attached to the return.

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

Credits in the EATI program are authorized by the VT Economic

the total here and on Side 1, Line 6.

Progress Council (VEPC) {(802) 828‑5256} and include payroll,

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

workforce development, research and development, export,

the total amount paid as nonresident estimated payments for 2011,

capital investment, high-tech growth, sustainable technology

including any catch‑up payment, if applicable. Include any amount

research & development, and sustainable technology export

paid towards composite tax liability. Also include any amount of

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

nonresident estimated payments made by another entity on your

authorizes tax credits for facade and code compliance work on

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

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

indicating the name(s) and FEIN(s) of the company(ies) that made

elevators, or sprinkler systems for qualified buildings located

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

within Designated Downtown districts. For buildings located

within designated Village Centers, the Downtown Development

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

Board authorizes tax credits for the Sustainable Rehabilitation

receiving a distributive share of income or loss.

of Certified Historic Buildings and for Code Improvements to

Line J Of the above, how many are Vermont residents? (See TB‑#5

Commercial Buildings. The Vermont Housing Finance Agency

and TB‑06 for residency guidelines for entities.)

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

Line K How many are non‑Vermont residents?

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

Energy Investment credit, requires a credit calculation schedule,

Signature Section

a credit allocation schedule, a copy of the original authorizing

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

document (as applicable), and substantiating documentation which

the preparer. Please make you check payable to the Vermont

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

Department of Taxes. Please write your FEIN number on your

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

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

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

staple the check to your return.

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 - 2011 Page 4

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