Form I-334 - Milk Credit

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STATE OF SOUTH CAROLINA
1350
1350
I-334
DEPARTMENT OF REVENUE
(Rev. 9/28/07)
MILK CREDIT
3407
20
Name As Shown On Tax Return
SS No. or Fed. EI No.
This form must be attached to the SC1040, SC1065, SC1120 or SC1120S.
1. Enter the number of pounds (lbs.) of milk produced and sold during Calendar
Year
, as certified by the Commissioner of Agriculture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
lbs.
If less than 500,000 lbs., STOP. You do not qualify.
2. Enter $2,500 if line 1 is greater than or equal to 500,000 pounds (lbs.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
3. Subtract 500,000 pounds (lbs.) from line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
lbs.
4. Divide line 3 by 500,000 pounds (lbs.) and round down to the nearest whole number. . . . . . . . . . . . . . . . . . . . . . .
5. Multiply line 4 by $1,250. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
6. Add lines 2 and 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
7. Enter the number of quarters in Calendar Year
to which the credit applies,
as certified by the Commissioner of Agriculture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8. Multiply line 6 by line 7. Enter here and on the appropriate line of your tax return. This is the amount of the credit. $
General Instructions:
For taxable years beginning after 2004, a refundable credit against individual or corporate income tax is available to
resident taxpayers engaged in the business of producing milk for sale, based on the amount of milk produced and sold.
The credit amount is $10,000 for the first 500,000 pounds of milk produced and sold below the production price over a
calendar year, and $5,000 for each additional 500,000 pounds of milk produced and sold below the production price
during the calendar year. Credits must be prorated on a quarterly basis.
The S.C. Commissioner of Agriculture will certify to the Department of Revenue which producers are eligible to claim the
credit and the amount of the credit.
The credit is allowed when the USDA Class I price of fluid milk in South Carolina drops below the production price as
determined by the S.C. Department of Agriculture. The production price is based on such factors as: (1) the average price
of milk in the top five states where milk is imported to South Carolina; (2) the average transportation cost of importing milk
from those five states; and (3) the cost of production in South Carolina. The Department of Agriculture’s regulations are
available at
The average production price is posted on the S.C. Department of Agriculture’s website ( ) and
available in the S.C. Commissioner of Agriculture’s Office at least once a year after all information needed to compute the
average production price becomes available.
If information necessary for determining the cost of production in South Carolina is not readily available, then the
Department of Agriculture may use the next best information available, which may include the cost of production in other
Southern states.
The Department of Agriculture provides a form to be filled out and signed by all dairy producers filing for this credit. The
form is for certifying the amount of milk produced and sold by a specific producer for the entire taxable year. The form
includes a sworn statement by the producer regarding the accuracy of the information listed.
34071027

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