Schedule 1299-C Instructions

              Schedule 1299-C Instructions (R-12/05) Page 1 of 4
Illinois Department of Revenue
2005 Schedule 1299-C Instructions
General Information
Complete this schedule if you are filing Form IL-1040, Individual
Income Tax Return, and are entitled to the following subtractions:
• Dividends from enterprise zones
• Dividends from a high impact business (within a foreign trade zone
or sub-zone)
or the following credits:
• TECH-PREP Youth Vocation Programs Credit
• Dependent Care Assistance Programs Credit
• Film Production Services Tax Credit
• Jobs Tax Credit
• High Impact Business Investment Credit
• Enterprise Zone Investment Credit
• Economic Development for a Growing Economy (EDGE) Credit
• Affordable Housing Donations Credit
• Environmental Remediation Tax Credit
• 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 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.
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.
Line 2 - Follow the instructions on the form.
Line 3 - Add the amounts in Column C, Lines 1a through 1c, and
Line 2. Write the total amount here.
High Impact Business Dividend Subtraction (within a
Foreign Trade Zone or sub-zone)
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.
Line 4
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 operating.
Column C - Write the amount of dividends you received from the
corporation.
You may deduct 100 percent of these dividends if they
are included in your Illinois base income. However,
dividends eligible for the enterprise zone subtraction are not
eligible for the foreign trade zone (or sub-zone) subtraction.
Line 5 - Follow the instructions on the form.
Line 6 - Add the amounts in Column C, Lines 4a through 4c, and
Line 5. Write the total amount here.
Line 7 - Add Lines 3 and 6. Write the total here and on your
Schedule M, Line 20. This is your total dividend subtraction.
Step 2: Figure your credits (which may be
carried forward for two years)
If there is any excess of these credits, you may carry it forward for
two years. This will be figured in Step 5. You must use this excess
credit in proportion to its share of the total excess two-year credit
available for the year in which the credit was earned.
TECH-PREP Youth Vocational Programs Credit
You may take this credit if
• your tax year ending is on or after June 30, 1995,
• you are primarily engaged in manufacturing, and
• you have direct payroll expenses for qualifying cooperative secondary
school youth vocational programs in Illinois, or you pay for personal
services performed by a TECH-PREP student or instructor who would be
subject to withholding if they were employed by you and no other credit is
claimed by the actual employer.
You may not take this credit for programs with national standards
that have been or will be approved by the U.S. Department of Labor,
Bureau of Apprenticeship Training, or any federal agency
succeeding to the responsibilities of that bureau.
“Qualifying TECH-PREP programs” are those
certified by the Illinois State Board of Education.
Line 8 – Add the amount of direct payroll expenses for cooperative
secondary school youth vocational programs and the amount paid to
a TECH-PREP student or instructor employed by you for personal
services performed. Write the total amount on the line provided.
Multiply this total amount by 20 percent (.20), and write the result.
This is your TECH-PREP Youth Vocational Programs Credit.
Dependent Care Assistance Program Tax Credit
To qualify for this credit,
• you must be primarily engaged in manufacturing, and
• your on-site facility dependent care assistance program
must be in Illinois and on the premises of your workplace.
Line 9 – Write the amount of your expenses, reported under IRC
Section 129(d)(7), that were used for on-site dependent care. Multiply
this amount by 5 percent (.05), and write the result. This is your
Dependent Care Assistance Program Tax Credit.
Line 10 – Total credits that may be carried forward for two
years. Add Lines 8 and 9. Write this amount in Step 4, Line 55.
Step 3: Figure your credits (which may be
carried forward for five years)
If there is any excess of these credits, you may carry it forward for
five years. This will be figured in Step 5. You must use this excess
credit in proportion to its share of the total excess credit available for
the year in which the credit was earned.
Film Production Services Tax Credit
For tax years beginning on or after January 1, 2004, businesses in
the film industry may be able to take a tax credit.
To qualify for this credit, you must have applied for and received a Tax
Credit Certificate from DCEO. Contact DCEO for more information.