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CT-38 (2012)

Instructions

Temporary deferral of certain tax credits

Line 7 — Multiply line 4 by the investment allocation percentage

from Form CT-3-ATT, Schedules B, C, and D — Attachment to

For tax years beginning on or after January 1, 2010, and before

Form CT-3, or CT-3-A.

January 1, 2013, if the total amount of certain credits that you

may use to reduce your tax or have refunded to you is greater

Line 9 — Enter the amount from Form CT-3, line 23, or

than $2 million, the excess over $2 million must be deferred

Form CT-3-A, line 23, column E.

to, and used or refunded in, tax years beginning on or after

Line 11 — Multiply line 10 by 1.5% (.015). If you are an eligible

January 1, 2013. For more information about the credit deferral,

qualified New York manufacturer, multiply line 10 by .75% (.0075).

see Form CT-500, Corporation Tax Credit Deferral.

Schedule A, Part 2 – Computation of adjusted

If you are subject to the credit deferral, you must complete all

minimum tax

credit forms without regard to the deferral. However, the credit

amount that is transferred to your tax return to be applied

The adjusted minimum tax is the excess of the amount of the

against your tax due or to be refunded to you may be reduced.

minimum tax over the next largest tax computed for the tax

Follow the instructions for Form CT-500 to determine the

year. The next largest tax means the largest amount based on

amounts to enter on your tax return.

the ENI, capital, or fixed dollar minimum tax base. You must

reduce this amount by the excess, if any, of the modified

General information

minimum tax over the next largest tax.

The minimum tax credit is generated in those years when the

Schedule B – Computation of available minimum

largest tax is based on the minimum taxable income (MTI)

tax credit

base, and may be claimed in a subsequent year when your

tax is based on the entire net income (ENI) base. The credit is

You may use the minimum tax credit to reduce your franchise

designed to prevent the double taxation that might otherwise

tax only if the tax is based on ENI. The amount of credit is

arise because of the inclusion of timing items of tax preference

the adjusted minimum tax computed for all prior years, minus

and adjustment in both the MTI and ENI bases but in different

any amount used as a minimum tax credit in prior years. Use

tax years. The minimum tax credit for any tax year is the

lines 19 and 20 to compute the available minimum tax credit.

amount, if any, that the adjusted minimum tax imposed for

all prior tax periods beginning after 1989 exceeds the amount

Line 19 — The amount of minimum tax carryforward is the total

allowed as a minimum tax credit, that was deducted from the

amount of the adjusted minimum tax calculated in prior years

taxpayer’s tax for such prior years.

minus any amount used as a minimum tax credit in prior years.

If your tax due this year is based on the MTI base, complete

Line 20 — If your tax due is based on the MTI, add lines 18 and 19.

Schedule A, Parts 1 and 2, Schedule B, and Schedule D to

Do not complete lines 21 through 28. Enter this amount on line 29.

compute the minimum tax credit generated this year and carried

If your tax due is based on ENI, enter the line 19 amount and

forward to future years.

continue with lines 21 through 29.

If your tax due this year is based on the ENI base, and your

Schedule C – Computation of minimum tax credit

tax in a prior year was based on the MTI base, complete

used

Schedules B, C, and D to compute the minimum tax credit used

this year and carried forward to future years.

Line 21 — Enter the amount from Form CT-3, line 78, or

Form CT-3-A, line 77, plus any net recaptured tax credits.

If your tax due this year is based on the fixed dollar minimum

tax or the capital base tax, complete line 29 to compute the

Line 22 — If you are claiming more than one tax credit for

minimum tax credit carried forward to future years.

this tax year, enter the amount of tax credit(s) claimed before

the minimum tax credit. Refer to Form CT-600, Ordering of

Combined filers: Lines 1 through 29 should be read as if the

Corporation Tax Credits; otherwise enter 0 on line 22.

terms were on a combined return, Form CT-3-A. For example:

the reference to entire net income on line 1 should be read by

Line 27 — If line 26 is less than line 23, subtract line 26 from

the combined filer as combined entire net income.

line 23 and enter the result here. Otherwise, enter 0; you cannot

use any minimum tax credit this year.

Line instructions

Line 28 — Enter the lesser of line 20 or line 27.

Schedule A, Part 1 – Computation of modified

If your total credits from all sources are $2 million or less, enter

minimum tax

the amount from line 28 on your franchise tax return.

The modified minimum tax is the minimum tax recomputed

excluding those adjustments and tax preference items related

If your total credits from all sources are more than $2 million,

to timing differences. The only adjustment or tax preference

you may be subject to the temporary credit deferral. Complete

item you may take into account is depletion.

line 28 but do not enter the amount from line 28 on your

franchise tax return. See Form CT-500 to determine the proper

Line 1 — Enter the amount from Form CT-3, line 17, or

amounts to enter on your franchise tax return.

Form CT-3-A, line 17, column E.

Schedule D – Minimum tax credit carried forward

Line 2 — Enter the amount from Form CT-3, line 52, or

Form CT-3-A, line 52, column E.

Line 29 — If your tax due is based on MTI, enter the line 20

Line 4 — Enter the amount from Form CT-3, line 18, or

amount. If your tax due is based on ENI, subtract line 28 from

Form CT-3-A, line 18, column E.

line 20. If your tax due is based on fixed dollar minimum tax or

the capital base tax, enter the amount of minimum tax credit

Line 6 — Multiply the amount on line 5 by the business

carryforward from the prior year’s Form CT-38.

allocation percentage from Form CT-3 or CT-3-A.

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See Form CT-1, Supplement to Corporation Tax Instructions.

Form Ct-38 - Minimum Tax Credit - New York State Department Of Taxation And Finance - 2012 Page 2

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