Form Fae 170 - Franchise, Excise Tax Return (Page 7 of 8) in pdf

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 generally 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

Tenn. Code Ann. Section 67-4-2009(3).

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

PART 1

TAX CREDIT COMPUTATION

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

_________________

2. Percentage allowed (Generally 1%, see note below) ................................................................................. (2)

_________________

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

_________________

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

_________________

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)

_________________

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

_________________

9. Credits from Schedule D, Lines 1 through 6 and Schedule D, Line 9 ........................................................ (9)

_________________

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

_________________

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

_________________

PART 2

RECAPTURE OF 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) .......................................................................................................................................................................

_________________

Note: The percentage allowed on Part 1, Line 2 above is 1%, unless the taxpayer has met the requirements of Tenn. Code Ann.

Section 67-4-2009(3)(I) and has been approved by the Commissioner of Revenue for an enhanced rate based on the investment

amount. The statutory minimum investment requirements and applicable rates are shown on the following chart:

Minimum Required Capital Investment

Rate of Credit

$100,000,000

$250,000,000

$500,000,000

$1,000,000,000

10%

INTERNET (12-12)