Industrial Machinery Tax Credit

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TENNESSEE DEPARTMENT OF REVENUE

INDUSTRIAL MACHINERY TAX CREDIT

TAXABLE YEAR

TAXPAYER NAME

ACCOUNT NO./FEIN/SSN

Franchise and excise taxes may be reduced by a credit on industrial machinery purchased during the tax period covered by the return and

located in Tennessee. The credit is computed at 1% of the purchase price of qualified industrial machinery. The credit taken on any return

cannot exceed 50% of the current year’s franchise and excise tax liability, but any unused credit may be carried forward 15 years under T.C.A.

Section 67-4-2009(4).

SCHEDULE T (FORM FAE 170) - SCHEDULE OF INDUSTRIAL MACHINERY

PART 1

TAX CREDIT COMPUTATION

1. Purchase price of machinery ....................................................................................................................... (1)

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2. Percentage allowed ...................................................................................................................................... (2)

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3. Original credit (Line 1 multiplied by Line 2) ................................................................................................. (3)

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4. Credit available from prior year(s) (From Schedule V) ................................................................................ (4)

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5. Total credit available (Add lines 3 and 4) ..................................................................................................... (5)

_________________

6. Franchise and Excise Tax liability before any credits (From Schedule A, Line 3 plus Schedule B, Line 5 )(6)

_________________

7. Limitation on Credit (50% of line 6) .............................................................................................................. (7)

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8. Franchise and Excise Tax liability before any credits (From Schedule A, Line 3 plus Schedule B, Line 5 )(8)

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9. Credits from Schedule D, Lines 1, 2, 3, and 6 ............................................................................................. (9)

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10. Tax before Industrial Machinery Credit (Line 8 less Line 9) ...................................................................... (10)

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11. Amount available in Current Year (Least of Lines 5, 7, or 10; transfer to Schedule D, Line 4) ................ (11)

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PART 2

RECAPTURE OF EXCISE TAX CREDIT

In the event that any industrial machinery is sold or removed and credit has been taken against franchise and/or excise taxes, the following

formula is to be used to recapture the tax credit taken for each item of machinery:

Credit taken on purchase of machinery X percentage of useful life remaining at time of sale or removal = Amount of credit to be recaptured.

Total amount of recapture to be used to increase franchise and excise tax liability (Transfer to Schedule B,

Line 6) .......................................................................................................................................................................

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INTERNET (11-06)