Schedule 1299-A Instructions

              Schedule 1299-A Instructions (R-12/05) Page 1 of 4
Illinois Department of Revenue
Schedule 1299-A Instructions
General Information
Complete this schedule if you are filing Form IL-1065 or
Form IL-1120-ST and are entitled to the following subtractions:
• Dividends from enterprise zones
• Dividends from foreign trade zones (or sub-zones)
• Contribution to a zone organization (Form IL-1120-ST filers only)
• Interest income from a loan secured by enterprise zone or high
impact business property (Form IL-1120-ST financial
organizations only)
or the following credits:
• Film Production Services Tax Credit
• Enterprise Zone Investment Credit
• Tax Credit for Affordable Housing Donations
• Economic Development for a Growing Economy (EDGE) Credit
• Environmental Remediation
• Research and Development Credit
See Illinois Schedule 1299-S, Enterprise Zones,
Foreign Trade Zones, and Sub-Zones, for a listing of these zones
in Illinois, as well as their definitions.
Step 1: Figure your subtractions
Enterprise Zone of Foreign Trade Zone
(or sub-zone) Dividend Subtraction
You may claim a subtraction for dividends you received from a
corporation that conducts substantially all of its business operations
in an Illinois enterprise zone or zones.
You may deduct any portion of these dividends that is
included in your Illinois base income. Do not include any dividends
from High Impact Businesses operating in a foreign trade zone (or
sub-zone).
Line 1 — Column A – Write the name of the corporation from
which you received dividends.
Column B – Write the name of the enterprise zone in which the
corporation is located.
Column C – Write the amount of dividends you received from the
corporation and included in your base income.
Line 2 – Add Columns 1a through 1c.
• IL-1065 filers: Write the total here and on Step 2, Line 11.
• IL-1120-ST filers: Write this total here and on Step 2, Line 14
High Impact Business within a Foreign Trade
Zone (or sub-zone) Subtraction
You may claim a subtraction for dividends you received from a
corporation that is designated by the Department of Commerce and
Economic Opportunity (DCEO) as a “High Impact Business” and
conducts business operations in a federally designated foreign trade
zone (or sub-zone) located in Illinois.
You may deduct any portion of these dividends that is
included in your Illinois base income.
Line 3 — Column A – Write the name of the corporation from
which you received dividends.
Column B – Write the name of the foreign trade zone (or sub-zone)
in which the corporation is located.
Column C – Write the amount of dividends you received from the
corporation.
Line 4 – Add Column 3a through 3c.
• IL-1065 filers: Write this total here and on Step 2, Line 12.
• IL-1120-ST filers: Write this amount here and on Step 2, Line 15.
Contribution Subtraction
(Form IL-1120-ST filers only)
You may deduct twice the amount of any contribution made during
your tax year to a designated zone organization to be used for an
enterprise zone project approved by DCEO, provided that the
contribution qualifies as a charitable contribution under Internal
Revenue Code (IRC), Section 170(c).
Line 5
Column A – Write the name of the enterprise zone that is the site
of the project for which the contribution was made.
Column B – Write the name of the designated zone organization to
which the contribution was made.
Column C – Write the amount of contribution.
Column D – Multiply each entry in Column C by 2.
Line 6 – Add Column D, Lines 5a through 5c. Write the total amount
here and on Step 2, Line 16. This is your contribution subtraction.
Interest Subtraction -
(Form IL-1120-ST financial organizations only)
If you are a financial organization, as defined in the Illinois Income
Tax Act (IITA), Section 1501(a)(8), you may subtract any interest
income received during the tax year from a loan made to a borrower,
to the extent the loan is secured by qualified property that is eligible
for the enterprise zone or high impact business investment credit.
Enterprise Zones
(Form IL-1120-ST financial organizations only)
Line 7 — Column A – Write the name of the borrower eligible to
claim the enterprise zone investment credit.
Column B – Write a description of each item of qualified property
used to secure the loan.
Column C – Write the year the borrower claimed or will claim the
credit on the qualified property.
Column D – Write the name of the enterprise zone in which the
property used as security is located.
Column E – Write the basis of each item of property listed in
Column B that was used to compute the depreciation deduction for
federal income tax purposes.
Column F – Write the amount of the loan.
Column G – Write the interest received for the loan during the year.
Column H – Divide each entry in Column E by Column F (cannot
exceed “1”), and multiply the result by Column G.
Line 8 – Add Column H, Lines 7a through 7c. Write the total here
and Step 2, Line 17.
High Impact Business within a Foreign Trade
Zone (or sub-zone)
(Form IL-1120-ST financial organizations only)
Complete this section in the same manner as Lines 7 and 8, except:
Line 9 — Column A – Write the name of the borrower eligible to
claim the High Impact Business Investment Credit.
Column D – Write the name of the foreign trade zone (or sub-zone)
in which the property used as security is located.
Line 10 – Add Column H, Lines 9a through 9c. Write the total here
and on Step 2, Line 18. This is your High Impact Business within a
Foreign Trade Zone (or sub-zone) Interest Subtraction.