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Illinois Free Printable 2023 Schedule 1299-A Instructions for 2024 Illinois Tax Subtractions and Credits -for partnerships and S corporations)

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Tax Subtractions and Credits -for partnerships and S corporations)
2023 Schedule 1299-A Instructions

Illinois Department of Revenue 2023 Schedule 1299-A Instructions General Information Complete this schedule if you are filing Form IL-1065, Partnership Replacement Tax Return or Form IL-1120-ST, Small Business Corporation Replacement Tax Return and are entitled to any of the credits listed on Schedule 1299-I or any of the following subtractions: • Dividends from river edge redevelopment zones • Dividends from foreign trade zones (or sub-zones) • Contribution to a zone organization (Form IL-1120-ST filers only) • Interest income from a loan secured by river edge redevelopment zone or high impact business property (Form IL-1120-ST financial organizations only) If you are filing an Illinois combined unitary return, complete one Illinois Schedule 1299-A for the entire group. For each credit, you will need to complete at least one row on Schedule 1299-A, Step 3 for each unitary group member who received the credit. If a specific unitary member has received multiple, separate amounts of the same type of credit repeatedly over multiple tax years, complete multiple rows for that member and that credit on Schedule 1299-A, Step 3, one row for each tax year in which a separate amount was received. For example, unitary group member A (FEIN 12-3456789) earned $300 of Film Production Services credit during the tax year ending 12/31/23. Member B (FEIN 98-7654321) earned $400 of Film Production Services credit during the year ending 12/31/23. Complete Schedule 1299-A, Step 3 as follows: • enter “5000” in Column A, “2023-12” in Column B, “12-3456789” in Column C, and “$300” in Columns E and H • enter “5000” in Column A, “2023-12” in Column B, “98-7654321” in Column C, and “$400” in Columns E and H See Example 1 on Page 7. What must I attach? If applicable, you must attach • Schedules K-1-P, Partner’s or Shareholder’s Share of Income, Deductions, Credits, and Recapture, received from a partnership or S corporation, • certificates issued by the Illinois Department of Commerce and Economic Opportunity (DCEO), • certificates issued by the Illinois Department of Natural Resources (DNR), • certificates issued by the Illinois Department of Agriculture (IDOA), • certificates issued by the Illinois Department of Human Services (DHS), • proof that credit was issued by the Illinois Housing Development Authority or the City of Chicago, and • any other documents, including transfer documentation, required by the Illinois Department of Revenue (IDOR) and noted in these instructions or Schedule 1299-I. Note: Specific information about what to attach to your Schedule 1299-A can be found in Schedule 1299-I, Income Tax Credits Information and Worksheets. Failure to follow these instructions and attach required documentation will result in one or more of the following: a delay in the processing of your return, the disallowance of the credit, or the issuance of correspondence from IDOR. You also may be required to submit further information to support your filing. Should I round? You must round the dollar amounts on Schedule 1299-A to whole-dollar amounts. To do this, you should drop any amount less than 50 cents and increase any amount of 50 cents or more to the next higher dollar. What if I need additional assistance or forms? • For assistance, forms, or schedules, visit our website at tax.illinois.gov or scan the QR code provided. • Write us at: ILLINOIS DEPARTMENT OF REVENUE PO BOX 19001 SPRINGFIELD IL 62794-9001 • Call 1 800 732-8866 or 217 782-3336 (TTY at 1 800 544-5304). • Visit a taxpayer assistance office - 8:00 a.m. to 5:00 p.m. (Springfield office) and 8:30 a.m. to 5:00 p.m. (all other offices), Monday through Friday. Schedule 1299-A Instructions (R-12/23) Printed by the authority of the state of Illinois. - electronic only - one copy. Page 1 of 7 Specific Instructions Reminder: In order to claim amounts reported to you on an Illinois Schedule K-1-P, the tax year ending listed on the Illinois Schedule K-1-P you received must fall within your tax year. Step 1: Figure your subtractions If you have more qualifying subtractions than space provided on Schedule 1299-A, attach additional Schedule(s)1299-A to your original Schedule 1299-A. Enter the total subtractions you may claim on your original Schedule 1299-A. Do not enter the total on your additional schedules. For example, if you have more than three corporations from whom you received qualifying dividends for the River Edge Redevelopment Zone Dividend subtraction, add the amounts from the original Schedule 1299-A, Step 1, Line 1, and the additional schedules, and include that total on your original Schedule 1299-A, Line 3. Additionally, if you receive more than one Schedule K-1-P for any eligible subtraction, you should add the amounts from all Schedules K-1-P for that subtraction and enter the total in Step 1 on the corresponding line item of your original Schedule 1299-A. River Edge Redevelopment 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 river edge redevelopment zone. Note: You may deduct only the portion of these dividends that is included in your Illinois base income. Do not include any dividends from high impact businesses operating in a foreign trade zone (or sub-zone). Line 1 — Column A – Enter the name of the corporation from which you received dividends. Column B – Enter the name of the river edge redevelopment zone in which the corporation is located. Column C – Enter the amount of dividends you received from the corporation and included in your Illinois base income. Line 2 — Follow the instructions on the form. Line 3 — Add Column C, Lines 1a through 1c, (including the amounts on any additional schedules you have attached) and Line 2. • Enter the total on your original Schedule 1299-A and on Form IL-1065, Line 28, or IL-1120-ST, Line 25. • Enter any portion of this amount that will be distributed to a partner or shareholder on Illinois Schedule K-1-P, Line 39. High Impact Business within a Foreign Trade Zone (or sub-zone) Dividend Subtraction You may claim a subtraction for dividends you received from a corporation that is designated by DCEO as a “high impact business” and conducts business operations in a federally designated foreign trade zone (or sub-zone) located in Illinois. Note: You may deduct only the portion of these dividends that is included in your Illinois base income. Do not include any dividends from businesses operating in a river edge redevelopment zone. Line 4 — Column A – Enter the name of the corporation from which you received dividends. Column B – Enter the name of the foreign trade zone (or sub-zone) in which the corporation is located. Column C – Enter the amount of dividends you received from the corporation and included in your Illinois base income. Line 5 — Follow the instructions on the form. Line 6 — Add Column C, Lines 4a through 4c, (including the amounts on any additional schedules you have attached) and Line 5. • Enter the total on your original Schedule 1299-A and on Form IL-1065, Line 29, or IL-1120-ST, Line 27. • Enter any portion of this amount that will be distributed to a partner or shareholder on Illinois Schedule K-1-P, Line 40. Contribution Subtraction (Form IL-1120-ST filers only) You may deduct twice the amount of any contribution made during your tax year to a designated zone organization to be used for an enterprise zone or river edge redevelopment zone project approved by DCEO, provided that the contribution qualifies as a charitable contribution under Internal Revenue Code Section 170(c). Line 7 — Column A – Enter the name of the enterprise zone or river edge redevelopment zone that is the site of the project for which the contribution was made. Column B – Enter the name of the designated zone organization to which the contribution was made. Column C – Enter the amount of contribution. Column D – Multiply each entry in Column C by 2. Line 8 — Follow the instructions on the form. Line 9 — Add Column D, Lines 7a through 7c, (including the amounts on any additional schedules you have attached) and Line 8. • Enter the total amount on your original Schedule 1299-A and on Form IL-1120-ST, Line 29. • Enter any portion of this amount that will be distributed to a shareholder on Illinois Schedule K-1-P, Line 41. Schedule 1299-A Instructions (R-12/23) Page 2 of 7 Interest Subtractions (Form IL-1120-ST financial organizations only) If you are a financial organization, as defined in the Illinois Income Tax Act (IITA), Section 1501(a)(8), you may subtract any interest income received during the tax year from a loan made to a borrower, to the extent the loan is secured by qualified property that is eligible for the River Edge Redevelopment Zone or High Impact Business Investment credit. River Edge Redevelopment Zones Line 10 — Column A – Enter the name of the borrower eligible to claim the River Edge Redevelopment Zone Investment credit. Column B – Enter a description of each item of qualified property used to secure the loan. Column C – Enter the year the borrower claimed or will claim the credit on the qualified property. Column D – Enter the name of the river edge redevelopment zone in which the property used as security is located. Column E – Enter the basis of each item of property listed in Column B that was used to compute the depreciation deduction for federal income tax purposes. Column F – Enter the amount of the loan. Column G – Enter the interest received or accrued for the loan during the year. Column H – Divide each entry in Column E by Column F (cannot exceed “1”), and multiply the result by Column G. Line 11 — Follow the instructions on the form. Line 12 — Add Column H, Lines 10a through 10c, (including the amounts on any additional schedules you have attached) and Line 11. • Enter the total on your original Schedule 1299-A and on Form IL-1120-ST, Line 26. • Enter any portion of this amount that will be distributed to a shareholder on Illinois Schedule K-1-P, Line 42. High Impact Business within a Foreign Trade Zone (or sub-zone) Complete this section in the same manner as Lines 10 through 12, except: Line 13 — Column A – Enter the name of the borrower eligible to claim the High Impact Business Investment credit. Column D – Enter the name of the foreign trade zone (or sub-zone) in which the property used as security is located. Line 14 — Follow the instructions on the form. Line 15 — Add Column H, Lines 13a through 13c, (including the amounts on any additional schedules you have attached) and Line 14. • Enter the total on your original Schedule 1299-A and on Form IL-1120-ST, Line 28. • Enter any portion of the amount that will be distributed to a shareholder on Illinois Schedule K-1-P, Line 43. Step 2: Worksheet Complete this step only if you earned the Research and Development income tax credit during your current tax year. Research and Development Complete this step before entering any Research and Development credit earned in the current year in Step 3. Complete the Research and Development Worksheet in Schedule 1299-I. Bring the corresponding amounts from the Schedule 1299-I Worksheet, Line 6, Columns A and B, to Schedule 1299-A, Step 2, Line 16, Columns A and B. Follow the instructions on Schedule 1299-A to calculate the amount to list in Step 3, Column E on the line that you enter Credit Code 5340 in Column A of your Schedule 1299-A. Step 3: Figure your credits If you have more qualifying credits than space provided on Schedule 1299-A, attach additional Schedule(s) 1299-A to your original Schedule 1299-A. Additionally, if you receive more than one Schedule K-1-P for any eligible credit, add the amounts from all Schedules K-1-P for that credit and enter the total in Column F on the line with that credit code of your Schedule 1299-A. Follow the instructions below to complete Schedule 1299-A, Step 3, Columns A through D and Columns F through H. To determine the correct amount to list in Schedule 1299-A, Step 3, Column E, use the Schedule 1299-I instructions and worksheets. Lines 19 through 30 - Enter your credits Column A - Credit Code Each credit has a four-digit code used to identify it. The first digit of the code indicates how many years the credit can be carried forward. For example, all credits that can be carried forward two years start with “2”. The remaining three digits are the unique indicator for that specific code. Ten year carry forwards will use two digits for the year and two digits as the unique indicator. Credit codes that start with “0” cannot be carried forward. Schedule 1299-A Instructions (R-12/23) Page 3 of 7 Credit Code Income Tax Credit Name Apprenticeship Education Expense Recovery and Mental Health Film Production Services Enterprise Zone Investment Enterprise Zone Construction Jobs High Impact Business Construction Jobs Reimagining Energy and Vehicles (REV) Illinois Investment Affordable Housing Donations Economic Development for a Growing Economy (EDGE) New Construction EDGE Research and Development Wages Paid to Ex-Felons Student-Assistance Contributions Agritourism Liability Insurance Angel Investment New Markets Development River Edge Historic Preservation River Edge Construction Jobs Live Theater Production Hospital Invest in Kids Data Center Construction Employment Historic Preservation 0160 0180 5000 5080 5120 5160 5230 5260 5300 5320 5340 5380 5420 5440 5460 5500 5540 5560 5580 5620 5660 5820 1030 Column B - Credit Earned (YYYY-MM) Write the four-digit year and two-digit month of your Illinois tax year ending during which the credit was first earned. For S corporations and partnerships, this should always be your current tax year. Separate the year and the month with a dash (YYYY-MM). For example, if you first earned and received a Department of Commerce and Economic Opportunity (DCEO) certificate for a Film Production Services credit in August of 2023 and you are a fiscal filer with a tax year beginning July 1, 2023 and ending June 30, 2024, you will enter “2024-06” for this credit. Note: • If you are a 52/53-week filer, use the calendar or fiscal year-end date closest to your tax year-end date. For example, a 52/53-week filer has a year ending 12/27/2023 or 1/2/2024, would use 2023-12 for their tax year end date. • If you are filing a short year return, use the last day of the month that your tax year end falls in to determine your Tax Year Credit Earned. For example, a short year return was filed for the period of 1/1/24 - 2/15/24 using a tax year end date of 2024-02. Column C - Unitary Member FEIN Enter the FEIN of the unitary member that earned the credit. If you are a non-unitary filer, this column should be left blank. Column D - Certificate Number If you earn the Invest in Kids credit, enter the certificate number from the Certificate of Receipt (COR) you received from the Scholarship Granting Organization (SGO). If you receive a distributive share of the Invest in Kids credit, do not enter anything in Column E. All other credits leave this column blank. Column E - Credit Amount Earned Use the instructions and worksheets in Schedule 1299-I to determine the correct amount to list in this column. Every year, S corporations and partnerships distribute all their income tax credits to their members; therefore, S corporations and partnerships will not have income tax credits carried from the previous year or any credit to carry to the next year. If the distributive share is from an expired credit, enter on a separate line and list the expired credit code in Column A. Keep a copy of Schedule 1299-I in your records. You may be asked to provide a copy as additional verification. Column F - Distributive Share Credit from K-1-P For each credit, enter the sum of your distributive share of credits that were received from S corporations and partnerships on Schedule(s) K-1-P during your tax year. In order to claim the amount reported to you on a Schedule K-1-P the tax year ending listed on the Schedule K-1-P you received must fall within your tax year. If you report an amount in this column, include a copy of the Schedule(s) K-1-P you received. Note: List your tax year ending as YYYY-MM in Column B. Do not list the tax year ending from Schedules K-1-P. For non-unitary filers, if you receive more than one Schedule K-1-P with a distributive share of the same eligible credit, you should add the amounts from all Schedules K-1-P for that credit and enter the total on the corresponding line on Schedule 1299-A, Step 3, Column F. Schedule 1299-A Instructions (R-12/23) Page 4 of 7 If you are a unitary group and you are claiming distributive shares received by multiple unitary group members, complete a separate row on Schedule 1299-A, Step 3 for each credit type and for each unitary group member that received the distributive shares. On each row, list that member’s FEIN in Column C, and enter the total sum of all distributive shares that the member received for the specific credit identified in Column F. For example, unitary group member A (FEIN 12-3456789) received $300 in distributive shares for the Angel Investment credit during the tax year ending 12/31/23. Member B (FEIN 98-7654321) received $500 in distributive shares for the Angel Investment credit during the tax year ending 12/31/23. Member C (FEIN 99-1188227) received $300 in distributive shares for the Film Production Services credit on one Schedule K-1-P and $250 in distributive shares for the Film Production Services credit on another Schedule K-1-P, during the tax year ending 12/31/23. Complete Schedule 1299-A, Step 3 as follows: • enter “5000” in Column A, “2023-12” in Column B, “99-1188227” in Column C, and “$550” in Columns F and H • enter “5460” in Column A, “2023-12” in Column B, “12-3456789” in Column C, and “$300” in Columns F and H • enter “5460” in Column A, “2023-12” in Column B, “98-7654321” in Column C, and “$500” in Columns F and H See Example 2 on Page 7. Note: In this example, you will need to attach both Schedules K-1-P from Member C, as well as the Schedules K-1-P from Members A and B. Amounts in this column should only contain Distributive Shares of Credit reported on Schedule K-1-P received in the current tax year. Note: List your tax year ending as YYYY-MM in Column B. Do not list the tax year ending from Schedules K-1-P. Column G - Transferred Credit Amount Enter the amount of any credit transferred to you. If you report an amount in this column, include: • • a copy of the written notice of the transfer that the seller or donor received from the Department of Commerce and Economic Opportunity or Department of Natural Resources, or a copy of the written notice of the transfer that the seller or donor sent to IDOR. If you are a non-unitary filer and you receive more than one transfer of the same eligible credit code with the same expiration date, you should add the amounts from all transfers for that credit code and enter the total on the corresponding line on Schedule 1299-A, Step 3, Column G. If you are a unitary group and you are claiming credit transfers received by multiple unitary group members, complete a separate row on Schedule 1299-A, Step 3 for each credit type and each unitary group member that received the transfer. On each row, list that member’s FEIN in Column C, and enter the total sum of all transfers that member received for the specific credit identified in Column G. For credits that are being transferred to you in which the credit was required to be transferred within one year of the date the original credit was awarded, you must claim the credit in the tax year in which the credit was awarded, even if you have already filed your tax return for that year. If you have already filed your return for that year, you must file an amended tax return for that year to claim the transferred credit on Schedule 1299-D. For credits that are being transferred to you in which the credit was not required to be transferred within one year of the date the original credit was awarded, you may claim the credit in the tax year in which the credit was transferred to you. For these credits, the carry forward period is based on the original award date. Refer to the specific regulations of each credit and Illinois Schedule 1299-I for more information. For example, unitary group Z is an annual filer and includes unitary group members A, B, and C. On 04/15/2023, unitary group member A (FEIN 12-3456789) received a transfer of $8,000 of the Affordable Housing Donations credit with an award date of 12/31/2019 and an expiration date of 12/31/2024. On 09/15/2023, Member B (FEIN 98-7654321) received a transfer of $3,500 of the Film Production Services credit with an award date of 05/31/2023 and an expiration date of 05/31/2028. Member B also received a transfer on 03/15/2023 of $11,000 of Live Theater credit with an award date of 05/31/2022 and an expiration date of 05/31/2027. Member C (FEIN 99-1188227) received two transfers of the Hospital credit with the same award date (01/31/2023) and the same expiration date (01/31/2028) from different entities, one for $30,000 on 03/15/2023 and one for $15,000 on 06/30/2023. Complete Schedule 1299-A, Step 3 as follows: • enter “5260” in Column A, “2023-12” in Column B, “12-3456789” in Column C, and “$8,000” in Columns G and H • enter “5000” in Column A, “2023-12” in Column B, “98-7654321” in Column C, and “$3,500” in Columns G and H • enter “5620” in Column A, “2023-12” in Column B, “99-1188227” in Column C, and “$45,000” in Columns G and H Because the Live Theater credit must be transferred within one year of the award date and the credit must be claimed in the tax year the award date falls within, the $11,000 Live Theater credit cannot be claimed this year. The award date of 05/31/2022 falls within unitary group Z’s tax year ending 12/31/2022. Unitary group Z must claim the Live Theater credit on its 12/31/2022 return. If it has already filed its 12/31/2022 return, it must amend to claim the credit. See Example 3 on Page 7. Schedule 1299-A Instructions (R-12/23) Page 5 of 7 Column H - Total Credits (E+F+G) Add Column E, Column F, and Column G for each line and enter in Column H. Enter each owner’s share of Column H for Credit on Schedule K-1-P, Line Film Production Services Enterprise Zone Investment Enterprise Zone Construction Jobs High Impact Business Construction Jobs Affordable Housing Donations EDGE New Construction EDGE Research and Development Wages Paid to Ex-Felons Student-Assistance Contributions Angel Investment New Markets Development River Edge Historic Preservation River Edge Construction Jobs Live Theater Production Hospital Invest in Kids Data Center Construction Employment Apprenticeship Education Expense Historic Preservation REV Illinois Investment Agritourism Liability Insurance Recovery and Mental Health Other credits 52a 52b 52c 52d 52e 52f 52g 52h 52i 52j 52k 52l 52m 52n 52o 52p 52q 52r 52s 52t 52u 52v 52w 52x Keep a copy of Schedule 1299-A for your records. Schedule 1299-A Instructions (R-12/23) Page 6 of 7 EXAMPLE 1 A B C D E Unitary Certificate Member Number FEIN F Credit Amount Earned G Distributive Share Credit from K-1-P H Credit Code Credit Earned YYYY-MM 5000 2023-12 12-3456789 $300 0 0 $300 5000 2023-12 98-7654321 $400 0 0 $400 EXAMPLE Transferred Credit Amount Total Credits (E+F+G) EXAMPLE 2 A B C D E Unitary Certificate Member Number FEIN F Credit Amount Earned G Distributive Share Credit from K-1-P Transferred Credit Amount H Credit Code Credit Earned YYYY-MM 5000 2023-12 99-1188227 0 $550 0 $550 5460 2023-12 12-3456789 0 $300 0 $300 5460 2023-12 98-7654321 0 $500 0 $500 EXAMPLE Total Credits (E+F+G) EXAMPLE 3 A B C Unitary Member FEIN D E Distributive Share Credit from K-1-P 5260 2023-12 12-3456789 0 0 $8,000 $8,000 5000 2023-12 98-7654321 0 0 $3,500 $3,500 5620 2023-12 99-1188227 0 0 $45,000 $45,000 EXAMPLE Transferred Credit Amount H Total Credits (E+F+G) Schedule 1299-A Instructions (R-12/23) Credit Amount Earned G Credit Earned YYYY-MM Certificate Number F Credit Code Page 7 of 7
Extracted from PDF file 2023-illinois-schedule-1299-a.pdf, last modified November 2023

More about the Illinois Schedule 1299-A Corporate Income Tax Tax Credit TY 2023

We last updated the Tax Subtractions and Credits -for partnerships and S corporations) in January 2024, so this is the latest version of Schedule 1299-A, fully updated for tax year 2023. You can download or print current or past-year PDFs of Schedule 1299-A directly from TaxFormFinder. You can print other Illinois tax forms here.

Related Illinois Corporate Income Tax Forms:

TaxFormFinder has an additional 75 Illinois income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Illinois Schedule 1299-A.

Form Code Form Name
Schedule 1299-S Enterprise Zones, Foreign Trade Zones, and Sub-Zones
Schedule 1299-C Income Tax Subtractions & Credits For Individuals
Form ​Schedule 1299-I ​Income Tax Credits Information and Worksheets
Schedule 1299-B River Edge Redevelopment Zone or Foreign Trade Zone -or sub-zone) Subtractions -for corporations and fiduciaries)
Schedule 1299-D Income Tax Credits -for corporations and fiduciaries

Download all IL tax forms View all 76 Illinois Income Tax Forms


Form Sources:

Illinois usually releases forms for the current tax year between January and April. We last updated Illinois Schedule 1299-A from the Department of Revenue in January 2024.

Show Sources >

Schedule 1299-A is an Illinois Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.

About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Illinois Schedule 1299-A

We have a total of nine past-year versions of Schedule 1299-A in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2023 Schedule 1299-A

2023 Schedule 1299-A Instructions

2022 Schedule 1299-A

2022 Schedule 1299-A Instructions

2021 Schedule 1299-A

2021 Schedule 1299-A Instructions

2020 Schedule 1299-A

2020 Schedule 1299-A Instructions

2019 Schedule 1299-A

2019 Schedule 1299-A Instructions

2018 Schedule 1299-A

2018 Schedule 1299-A, Tax Subtractions and Credits (for partnerships and S corporations)

2016 Schedule 1299-A

2015 Schedule 1299-A, Tax Subtractions and Credits (for partnerships and S corporations)

Tax Subtractions and Credits -for partnerships and S corporations) 2015 Schedule 1299-A

2015 Schedule 1299-A, Tax Subtractions and Credits (for partnerships and S corporations)

Schedule 1299-A 2014 Schedule 1299-A

2014 Schedule 1299-A - Tax Subtractions and Credits


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