2005 Schedule 1299-D Instructions

              Schedule 1299-D Instructions (R-12/05) Page 1 of 4
Illinois Department of Revenue
2005 Schedule 1299-D Instructions
General Information
Complete this schedule if you are filing Form IL-1120, Corporation
Income and Replacement Tax Return, Form IL-1041, Fiduciary
Income or Replacement Tax Return, or Form IL-990-T, Exempt
Organization Income and Replacement Tax Return, and are entitled
to the following credits:
• TECH-PREP Youth Vocational Programs Credit
• Dependent Care Assistance Program Credit
• Film Production Services Tax Credit
• Employee Child Care Tax Credit (Form IL-1120 filers only)
• Jobs Tax Credit
• Enterprise Zone Investment Credit
• High Impact Business Investment Credit
• Tax Credit for Affordable Housing Donations
• Economic Development for a Growing Economy (EDGE) Credit
• Environmental Remediation Tax Credit (carryforward only)
• Research and Development Tax Credit
If you are filing an Illinois combined unitary return, complete one
Schedule 1299-D for the entire unitary business group.
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 credits (which can be
carried for two years)
If there is any excess of these credits, you may carry it forward for
two years. This is figured in Step 4. 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
• 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.
• if your direct payroll expenses have been claimed for the Training
Expense Credit.
“Qualifying TECH-PREP programs” are those
certified by the Illinois State Board of Education.
Line 1 – 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 the total amount by 20 percent (.20), and write the result on
Line 1. 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 2 – Write the amount of your expenses, reported under the
Internal Revenue Code (IRC) Section 129(d)(7), that were used for
on-site dependent care.
Multiply this amount by 5 percent (.05), and write the result on Line 2. This
is your Dependent Care Assistance Program Tax Credit.
Line 3 – Total credits that may be carried forward for two years.
Add Lines 1 and 2. Write this amount here and in Step 3, Line 54.
Step 2: Figure your credits (which can be
carried for five years)
If there is any excess of these credits, you may carry it forward for
five years. This is figured in Step 4. 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 the Illinois Department of Commerce and
Economic Opportunity (DCEO). Contact DCEO for more information.
Line 4 – Write the amount of credit from the tax credit certificate you
received from DCEO, including any amount transferred to you by the
person who earned the credit.
Line 5 – Write the amount of any distributive share you received from a
partnership or S corporation shown on Schedule K-1-P, Partner’s or
Shareholder’s Share of Income, Deductions, Credits, and Recapture.
You must attach the tax credit certificate you received from
DCEO or your Schedule K-1-P to your tax return.
Employee Child Care Tax Credit
You may take this credit if
• you file Form IL-1120, and
• you provide a child care facility, located in Illinois, for the children of
your employees.
You must keep records documenting all costs for which
the credit is being claimed.
The Employee Child Care Tax Credit allows a credit of 5 percent (.05)
of the annual amount paid by you to provide the child care facility for your
employees’ children.
The 30 percent credit for start-up costs was allowed only for
taxable years ending on or before December 31, 2004. You may not
claim the credit for taxable years ending after December 31, 2004.
You may carry forward any remaining credit that is available from
tax years ending on or before December 31, 2004. This will be
calculated in Step 3.
Line 7 – Write the annual amount paid to provide the child care
facility. Multiply this amount by 5 percent (.05), and write the result
on Line 7.
The 5 percent (.05) credit cannot be claimed if the
Dependent Care Assistance Program Tax Credit is claimed.
Jobs Tax Credit
You must be an employer in order to take this credit. The
Jobs Tax Credit cannot be passed through to partners of partnerships
or shareholders of S corporations.
To qualify for the credit, you must be an employer who
• increased the total number employed within the enterprise zone or
foreign trade zone (or sub-zone) this tax year by five or more full-time
eligible employees beyond the total employed in the zone as of the
end of the base year, and
• employed eligible employees for 180 consecutive days during that
tax year.