Schedule Cms Instructions (Page 2 of 3) in pdf

ferent Film Credits available and enters them separately with the certificate numbers. All of the 1st credit and part of the 2nd credit are used by the

taxpayer. These credits, regardless of the year in which they originate, must be identified by the certificate number.

The taxpayer also has a Harbor Maintenance tax credit that originated in the 12/31/2015 year. This is shown on the credit although none of the Har-

bor Maintenance credit is used in the current year. Because the credit relates to a prior year, schedule HM is not required.

1a.

1b. Fill in if

1c. Period end date

1d. Certificate

1e. Credit available or

1f. Credit taken

1g. Credit shared

Credit type

non-expiring

(mm/dd/yyyy)

number

certificate balance

this year

INVTAX

12/31/2016

$8,000

INVTAX

$3,500

$500,0

FLMCRD

0000000000

$5,000

FLMCRD

0000000001

$6,500

$3,500

HRBMNT

12/31/2015

$3,000

0$17,000

The total of the credits taken (column (f) is reported on the taxpayer’s return (Form 355, Tax Calculation, line 7, or Form 355S, line 10 or other applic-

able line item for a corporation not filing as part of a combined report.)

Taxpayers participating in a combined report filing form 355U enter the total amount of the taxpayer’s own EDIPC, EOAC, Investment Tax Credit,

Brownfields Credit and Vanpool Credit taken on U-IC line 2, the total amount of the (Part 38M) Research Credit on U-IC, line 5 and the total

amount of any other credits taken on schedule U-IC, line 8. Credits the corporation allows affiliates to use under the sharing rules are reported in col-

umn (g) of the credit manager. The recipient of the shared credits reports them on schedule U-CS and, in the appropriate category, on their own

schedule U-IC. (Per U-IC instruction)

Part 2 of the Credit Manager Schedule reports any refundable credits claimed in the current year that were not received via Massachusetts K1s or

via credit transfer*. Certain credits are refundable only if specifically authorized or, in the case of the Film Credit, if the original recipient has not trans-

ferred the credit to another. Other conditions may apply depending on the terms applicable to the specific credit. Credits are identified separately.

The amount in column (f) is the amount of the refund requested, which may be 100% or 90% of the amount reported in column (e). In the example

below, the taxpayer is has refundable film credit (allowed at 90% of the available balance) and a refundable conservation land credit (allowed at

100%.) Although not shown in the example, taxpayer reported both credits on Part 1 of the credit manager schedule and used part of the film credit

to reduce its excise for the year to 0; the $10,000 amount shown in column (d) of Part 2 is the balance remaining after deducting the portion used

in the current year and shown in column (f) of part 1.)

2a.

2b. Period end date

2c. Certificate

2d. Credit available or

2e. Reduction in

2f. Refundable credit

Credit type

(mm/dd/yyyy)

number

certificate balance

balance for refund

taken (100% or 90%)

FLMCRD

0000000011

$10,000

$9,000

CNSLND

1110000000

$1,0000

$1,000

The total of the amounts shown in column (f) are shown on the appropriate line of the taxpayer’s return (Form 355, Tax Calculation, line 18, or Form

355S, line 21, schedule U-ST, line 43 or other applicable line item.)

Comprehensive example with taxpayers that receive credits from a lower tier partnership:

In the example below, the taxpayer is a partnership with a Federal ID number of 987654321 filing a return for the taxable year ending 12/31/2016

and has a Conservation Land Tax Credit of $50,000 awarded in the current year. Partner A, B, and C respectively own 50%, 30%, 20% of the part-

nership. The partnership should file Part 1 of the Schedule CMS to reflect the claimed credit of $50,000 and the pass-through of those credits to its

partners via Part 1, column g.

Partnership’s Part 1

1a.

1b. Fill in if

1c. Period end date

1d. Certificate

1e. Credit available or

1f. Credit taken

1g. Credit shared

Credit type

non-expiring

(mm/dd/yyyy)

number

certificate balance

this year

CNSLND

222222222

$50,000

Partner A is a C-Corporation that applies $5,000 of the credit against its excise and claims a refund for the remaining portion of the credit. Partner

A completes Part 3 to reflect the receipt of the lower tier credits and fills in Part 3, column 3g to reflect the application of the $5,000 against its

excise. Partner A also completes Part 4 to identify the refundable balance of the credit (originating from a lower tier) being available and the

amount refunded.

Partner A’s Part 3

3a. Federal ID number

3b.

3c. Fill in if

3d. Period end date

3e. Certificate

3f.

3g. Credit taken

3h. Credit shared

of credit source