S Corporation Reconciliation And Shareholders Information Return

LINE 7 - DISTRIBUTIVE INCOME OF NON-RESIDENT

LINE 13 - BALANCE DUE OR OVERPAYMENT

SHAREHOLDERS

If Line 8 is greater than Line 12, enter the balance due and pay

Multiply Line 5 by the percentage on Line 6. This represents the

in full. If Line 12 is greater than Line 8, the amount on Line 12 will

entire distributive income attributable to non-resident shareholders.

be included proportionally in the amount of estimated tax claimed by

the non-resident shareholder(s) upon the filing of their Delaware

LINE 8 - TAX DUE

non-resident personal income tax return. A refund will not be issued

Multiply Line 7 by 6.95%. This is the amount of estimated taxes

directly to the S Corporation for any overpayment of estimated tax

which must be paid on behalf of the non-resident shareholders.

paid on behalf of the non-resident shareholder(s). Refer to the

instructions for Delaware Schedule A-1 for reporting such amount to

LINE 9 - ESTIMATED TAX PAID

the non-resident shareholders.

Enter on Line 9 the estimated tax paid for the taxable year from

DELAWARE SCHEDULE A-1

Delaware Form 1100P. Include on this line payments made with

requests for extensions of time to file. The statute requires

An S Corporation must prepare Delaware Schedule A-1,

prepayment by the S Corporation on behalf of the non-resident

Shareholders Share of Income, Deductions & Credits for all

shareholders. Please refer to Estimated Tax Filing Requirements on

shareholders. One copy is to be given to each shareholder and a copy

Page 2 and Form 1100P for due dates and amounts required to be

must be attached to this return. Delaware Schedule A-1 is similar to

paid.

Federal Schedule K-1, with the addition of several lines for state

modifications and credits. Complete Delaware Schedule A-1 by

LINE 10 - OTHER PAYMENTS

multiplying the respective lines on Delaware Schedule A and

Enter on Line 10 other payments not included on Line 9 and

Delaware Form 1100S by the percentage of stock owned by each

attach an explanation of such payments.

shareholder. Use Column A to report resident shareholder

information and Column B to report non-resident shareholder

LINE 11 - APPROVED INCOME TAX CREDITS

information. Federal Schedule K-1 cannot be used in lieu of

Enter on Line 11 the approved income tax credits for the S

Delaware

Schedule

A-1

when

filing

the

Corporation

Corporation, multiplied by the percentage of stock owned by non-

Reconciliation and Shareholders Information Return. Delaware

Schedule A-1 must be filed for each resident and non-resident

resident shareholders, from Delaware Form 700, Delaware Income

Tax Credit Schedule.

shareholder of the S Corporation.

LINE 12 - TOTAL PAYMENTS AND CREDITS

Add Lines 9 through 11 and enter the amount on Line 12.

DELAWARE S CORPORATION INCOME TAX CREDITS

Title 30 of the Delaware Code authorizes seven different credits

wholesale sale of computer software.

to be applied against Delaware income tax. The income tax credits

Any activity more than 50% of whose annual gross receipts

that are available are the Economic Development, Green Industries,

are derived from aviation services and employing at least 100

Research & Development, Land & Historic Resource Conservation,

qualified employees,

Travelink Traffic Mitigation, Neighborhood Assistance and Historic

Telecommunications

services which

shall include the

Property Preservation tax credits. The Economic Development,

administration,

supervision,

maintenance,

repair

and

Green Industries, Research & Development, Land & Historic

deployment of the physical infrastructure associated with

Resource Conservation and Historic Property Preservation income

telecommunications services. This qualified activity requires

tax credits are available for an S Corporation.

50 qualified employees and $750,000 in capital investment to

Becoming a qualified S Corporation, eligible for any of the five

qualify for the Economic Development Credits.

income tax credits, requires pre-approval by the State agency

A facility may be considered a qualified facility without hiring

responsible for the approval of such credits.

any qualified employees if the capital investment equals the greater

of $1 million or 15% of the unadjusted basis in the facility at the

ECONOMIC DEVELOPMENT CREDIT

close of the taxable year preceding the date on which installation or

Any S Corporation conducting a qualified activity within

construction of the investment commenced.

Delaware and has placed in service a qualified new or expanded

Any S Corporation that places a qualified facility into service in

facility may be eligible for Delaware S Corporation income tax

a "targeted area" may be eligible for increased Delaware S

credits equal to $400 for each qualified employee hired and $400 for

Corporation income tax credits equal to $650 for each qualified

each $100,000 invested in the qualified facility. The facility may

employee hired and $650 for each $100,000 invested in a qualified

also be eligible for a ten year reduction in the Delaware gross

facility.

receipts tax. The qualified new or expanded facility must hire 5 or

A targeted area is defined as:

more qualified employees and invest a minimum of $200,000 in

Any real property located within Delaware that is owned by

property, plant and equipment to be eligible for the credit.

this State, any political subdivision of the State or any agency

A qualified activity is defined as:

or instrumentality of the State or its political subdivisions,

Engaging in business as a manufacturer or wholesaler,

Any real property located within Delaware that is owned by a

Operation of a facility for the purpose of scientific,

non-profit organization as defined by Section 501(c) of the

agricultural or industrial research,

Internal Revenue Code,

Administration, management or support operations of a

Any area located within Delaware that has been approved by

manufacturer, wholesaler or research facility,

the United States Department of Commerce as a general

Any activity more than 50% of whose annual gross receipts

purpose foreign trade zone,

are derived from computer processing, data preparation,

Any 1980 Delaware census tracts, as defined by the United

engineering services, consumer credit reporting services, and

States Department of Commerce, Bureau of the Census.

S Corporation Reconciliation And Shareholders Information Return - 2011 Page 6

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