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Updates to 2010 Form

Updates to the Form 3540 on 04/12/2011—Credit Carryover Summary

We replaced text on the Form 3540 on:

  1. Side 1, column 1, General Information;
  2. Page 3, Column 2, Limitations.

Previous Version

  1. Note: the revision adds texts to this section
  2. However, the solar energy credit carryover and the commercial solar energy credit carryover may reduce alternative minimum tax.

Revised Version

  1. NASSCO AMT Reduction - The Board of Equalization recently ruled in the appeal of NASSCO Holdings, Inc 2010-SBE-001, November 17, 2010, that a corporate taxpayer may use the Manufacturing Investment Credit (MIC) to reduce alternative minimum tax (AMT).
  2. Alternative Minimum Tax (AMT) may be reduced by the following credit carryovers: Solar Energy Credit, Commercial Solar Energy Credit and the Manufacturing Investment Credit (MIC). However, the Manufacturing Investment Credit (MIC) carryover may only reduce the alternative minimum tax (AMT) for corporations.

Reason for the changes

The Board of Equalization ruled in the Appeal of NASSCO Holdings, that a corporate taxpayer may use the Manufacturing Investment Credit (MIC) to reduce the alternative minimum tax.

Impact

This change could reduce tax liability since Alternative Minimum Tax for corporate taxpayers may be reduced by the Manufacturing Investment Credit carryover.

Back to Tax Form Changes for 2010