Form Ba-404 - Vermont Tax Credits Earned, Applied, Expired, And Carried Forward (Page 2 of 2) in pdf

Form BA-404 Instructions

Tax Credits Earned, Applied, and Carried Forward

GENERAL INFORMATION

APPLYING CREDITS TO OFFSET TAX

Form BA-404 must be completed and attached to an income

C-Corporation (Form CO-411)

tax return if any tax credits are earned, applied, or carried

Enter the total amount of credits applied on Form

forward. Generally, tax credits are limited to a percentage

CO-411, Line 12. If Form CO-411 is filed for a Vermont

of the tax attributable to the income generated by the entity

Consolidated group, credits may only offset tax attributable

authorized for the credit. For details, review the guidelines

to income earned by the entity authorized for the credits.

of the credit program in which you are participating.

Include a statement to show separate company income

For any credit type being claimed, complete all applicable

and tax.

columns of Form BA-404. In most cases, Column D

Combined Report for Unitary Businesses (Form

(Amount Carried Forward to Future Years) should equal

CO-411-U)

Column A (Amount Carried Forward from Prior Years) plus

Enter the amount of credits applied on Form CO-421

Column B (Amount Earned Current Year) minus Column C

(Unitary Affiliate Schedule), Line 10. Credits may only be

(Amount Applied Current Year). However, in cases where a

applied to offset the tax of the entity that was authorized

credit expires without being used, the expired credit should

to earn the credits.

further reduce the value reported in Column D.

Business Income Tax Return (Form BI-471)

CREDIT DOCUMENTATION

For S-Corporations, Partnerships, and LLCs treated as

For Economic Advancement Tax Incentives (Line 1),

“pass-through” entities for tax purposes, tax credits are

provide the Annual Activity Report or Expired Annual

generally distributed to the owners of the entity in the same

Activity Report as applicable. If you are claiming newly

proportion that income or loss is distributed, and are not

earned credits this year, provide the 5930-series calculation

transferrable. Credits are applied on the Vermont income

schedules.

tax return of the individual or entity with the tax liability.

Credits are reported on Schedule IN-112 or IN-119, and

For the Business Solar Energy Credit (Line 14), include a

Schedule K-1VT of the Vermont Individual Income Tax

copy of the federal credit calculation, Federal Form 3648,

Return.

and a copy of the Certificate of Eligibility provided by the

Clean Energy Development Fund. If the federal credit was

If any or all of the entity income is taxed at the composite

earned based on investments both in and out of Vermont,

level, enter the amount of credits applied on Form BI-471,

provide a breakdown of the investment amounts and a

Line 13.

recomputed credit calculation based only on investments

For further details, refer to the statutes and program

that occurred in Vermont.

guidelines for the specific credit program in which you

If you have opted to take the Treasury grant rather than

are participating.

the business credit at the federal level, the Vermont

CONTACTING THE DEPARTMENT

Business Solar tax credit is not available. Similarly, if

you have received a grant from the Vermont Clean Energy

Mailing address:

Development Fund, the Business Solar tax credit is not

Vermont Department of Taxes

available. If you have received grants or assistance for

133 State Street

financing the project from any other public or private

Montpelier, VT 05633-1401

source, the basis investment amount for the credit

calculation must be adjusted downward to account for the

Taxpayer Services: (802) 828-5723

assistance. For more information see Technical Bulletin

Email Address: tax-corpincome@state.vt.us

45 at the Department website.

Web site Address:

For all other credit types, include a copy of the

Fax: (802) 828-5787

authorization document, a detailed description of the

activity that generated the credit, and a calculation schedule.

Forms: (802) 828-2515

Form Ba-404 - Vermont Tax Credits Earned, Applied, Expired, And Carried Forward Page 2

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