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Investment Credit
Investment credit installment from prior years: Enter – in dollars and cents – the yearly installment amount for an investment credit established on a franchise tax report originally due prior to January 1, 2008.
Investment credits must have been established by filing the appropriate credit schedules on the 2005-2007 franchise tax reports.
If, in one of the five years in which the installment of an investment credit would be claimed, the capital investments are taken out of service, removed from Texas, or otherwise disposed of, or the credit expires, the corporation may not take any remaining installment of the credit.
Investment credit carried forward from prior years: Enter the investment credit carried forward to this year from prior years. Enter dollars and cents.
Jobs Creation Credit
Jobs creation credit carried forward from prior years: Enter the jobs creation credit carried forward from prior years. Enter dollars and cents.
Research and Development Credit
Research credit carried forward from prior years: Enter the research and development credit carried forward from prior years. Enter dollars and cents.
Temporary Credits
Temporary Credit for Business Loss Carryforwards: A qualifying taxable entity should enter the result of the following calculation:
- preserved amount of business loss carryforwards (Item 2 of Form 05-172 filed in 2008)
- multiplied by 4.5% (0.045)
- multiplied by 7.75% (0.0775) for 2018 to 2027 reports; or 2.25% (0.0225) for 2008 to 2017 report
Enter dollars and cents.
Credits Claimed
Investment credit claimed – Enter the amount of investment credit claimed. The amount of credit claimed cannot be more than 50 percent of the tax due. Enter dollars and cents.
Jobs creation credit claimed: Enter the amount of jobs creation credit claimed. The amount of credit claimed cannot be more than 50 percent of the tax due. Enter dollars and cents.
Research credit claimed: Enter the amount of research credit claimed. The amount of credit claimed cannot be more than 50 percent of the tax due. Enter dollars and cents.
Research and Development Activities Credits: Any entity (including a combined group) establishing or claiming a Research and Development (R&D) Activities credit must file this report. Qualified research and qualified research expenditures, as defined by Section 41 of the Internal Revenue Code, are limited to research conducted in Texas.
Texas Franchise Tax Historic Structure Credit: Texas law provides a franchise tax credit for the certified rehabilitation of certified historic structures, up to 25 percent of eligible costs and expenses.The entity must qualify to establish this credit or receive this credit through a sale, assignment, or allocation. The unused portion of the credit can be carried forward for not more than five consecutive reports. Credit expires six years from the placed-in-service date listed on the Certificate of Eligibility issued by the Texas Historical Commission.
For each historic structure credit claimed, Form 05-901 Texas Franchise Tax Historic Structure Credit Certificate (PDF)must be submitted to the Comptroller of Public Accounts, by mail or fax to claim the credit.
Other: Enter credit amounts reported by banks for tax erroneously paid on reports originally due prior to January 1, 1992.
Enter dollars and cents.
See specific report year instructions for additional items that may be claimed.
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