- 9 -
|
page 9
Taxable Year Taxpayer Name Account No./FEIN
Schedule T ‑ Industrial Machinery and Research and Development Equipment Tax Credit
Part 1: Tax Credit Computation
Franchise and excise taxes may be reduced by a credit on industrial machinery and research and development equipment 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 and research and development equipment. 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. § 67-4-2009(3).
1. Purchase price of industrial machinery and research and development equipment ....................................(1) __________________________
2. Percentage allowed (generally 1%*) ......................................................................................................................(2) __________________________%
3. Current year credit (multiply Line 1 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 (add Schedule A, Line 3 and Schedule B, Line 5) ..........(6) __________________________
7. Limitation on credit (50% of Line 6) .......................................................................................................................(7) __________________________
8. Franchise and excise tax liability before any credits (add Schedule A, Line 3 and Schedule B, Line 5) .........(8) __________________________
9. Credits from Schedule D, Lines 1 through 4 and Schedule D, Line 7 .................................................................(9) __________________________
10. Tax before Industrial Machinery Credit (subtract Line 9 from Line 8) .............................................................(10) __________________________
11. Amount available in current year (enter the smaller value of Lines 5, 7, or 10 here, and on
Schedule D, Line 5) .................................................................................................................................................(11) __________________________
Part 2: Recapture of Tax Credit
The Industrial Machinery Tax Credit previously established on this form must be partially recaptured if the equipment on which it was
based was sold or removed from the state before the end of the equipment’s life as established for federal income tax purposes. The
recapture amount is a percentage of useful life remaining at the time of sale or removal multiplied by the credit originally established
on this form. Previously established credits have either offset tax or populated the carryover table Schedule V. Complete the Industrial
Machinery Credit Recapture Worksheet and then enter the applicable recapture amounts on Lines 12 and 13 below.
12. Reduction to credit carryover table, Schedule V, from recapture worksheet, Part 2, Line 16 ....................(12) __________________________
13. Recapture of credit from recapture worksheet, Part 2, Line 17 (enter here and on Schedule B, Line 6) ....(13) __________________________
*The percentage allowed on Part 1, Line 2 above is 1%, unless the taxpayer has met the requirements of Tenn. Code Ann. § 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 for the enhanced credit are shown on the following chart:
Minimum Required Capital Investment Rate of Credit
$100,000,000 3%
$250,000,000 5%
$500,000,000 7%
$1,000,000,000 10%
|