Form It-Ccc100 - Tax Credit For Cost Of Qualified Child Care Property (Page 3 of 3) in pdf

IT-CCC100 (1/10)

Department of Revenue

Income Tax Division

Page 3

Section 3 Recapture of QCCP Credit

(If QCCP has not been taken out of service you may skip this section)

The term “ recapture event” refers to any disposition by sale of qualified child care property by

the taxpayer, or any other event or circumstance under which property ceases to be qualified

child care property with respect to the taxpayer except the following: (1) any transfer by reason

of death; (2) any transfer between spouses or incident to divorce; (3) any transaction to which

Section 381(a) of the Internal Revenue Code applies; (4) any change in the form of conducting

the taxpayer’s trade or business so long as the property is retained in such trade or business as

qualified child care property and the taxpayer retains a substantial interest in such trade or

business; (5) any accident or casualty ; or (6) any instance where qualified child care property can no

longer function because of its structural or mechanical failure or its obsolescence. Recapture percentage

refers to the applicable percentages set forth in 48-7-40.6(a)(9).

Enter total QCCP Credit claimed on ITCCC100 in prior years

(A)

(A)________________

Describe recapture event:

(B)

Enter total of all credits previously claimed with respect to

(C)

recapture property

(C)________________

Enter applicable recapture percentage

(D)

(D)________________

Multiply line C by line D (Credits subject to recapture)

(E)

(E)________________

Item (E) must be added to the taxpayers tax liability in the year the recapture occurs. The order

for applying the recapture amount requires that you first eliminate any carryovers and then add

any additional amounts to tax in the year of the recapture event. Flow-through

entities must give partners, and shareholders the information shown in (E) above based on their

proportionate share of ownership.

“Recapture percentage” refers to the applicable percentage set forth in the following table:

If the recapture

The recapture

event occurs within--

percentage is:

Five full years after the qualified child care

property is placed in service....................... 100

The sixth full year after the qualified child