Delaware Gross Receipts - License Tax Reduction for New Businesses - Computation Schedule

Gross Receipts - License Tax Reduction for New Businesses - Computation Schedule
Computation Schedule For Claiming License Tax Reduction For Approved New Business Facility Gross Receipts - Form 402LTR 9901
STATE OF DELAWARE

DIVISION OF REVENUE

FORM 402LTR 9901

Reset

COMPUTATION SCHEDULE FOR CLAIMING LICENSE TAX REDUCTION FOR
APPROVED NEW BUSINESS FACILITY GROSS RECEIPTS

Print Form

THIS COMPUTATION SCHEDULE MUST BE COMPLETED AND SUBMITTED WITH EACH
MONTHLY AND/OR QUARTERLY LICENSE TAX RETURN FOR WHICH A TAX REDUCTION IS CLAIMED.
PART A -- NAME AND ADDRESS
1. Federal Employer Identification Number

TAX PERIOD ENDING DATE
( MM / DD / YY)

1 ---

______ / _______ /_______

2. Name of Taxpayer
3. Address
4. Location of qualifying business facility (if different from above).
5. Date Operations Commenced

Targeted Area Number

PART B -- BUSINESS ACTIVITIES --- Check the appropriate qualifying activity(s)
[ ] Aviation Mai ntenance & Repair Services
[ ] Telecommunications
[ ] Computer Software Sales (Wholesale Only)
[ ] Wholesaling
[ ] Consumer Credit Reporting/Collection Services
[ ] Management & Support Services for Activities listed
[ ] Data Processing or Data Preparation
[ ] Combination of Activitieslisted
[ ] Engineering
[ ] Occupational Licenses -- Targeted Areas Only
[ ] Manufacturing
[ ] Retailing -- Targeted Areas Only
[ ] Other ________________ -- Brownfield Areas Only
[ ] Other ________________ -- Green Industries Only
PART C - COMPUTATION OF NEW BUSINESS FACILITY CREDIT
1. Total GrossReceiptsfor thisFacility
2. Less Applicabl e Exclusion
3. Taxable GrossReceiptsfor thisFacility
4. Tax Rate (See Instructionson Back)
5. Tax before New Business Fac ility Tax Reduction (Multiply Line 3 by Line 4)
6. Amount of Gross Receipts Attributable to New Business Facility
7. Percent of New BusinessFacility Receiptsto Total Receipts
(Line 6 divided by Line 1)
8.
9.
10.

Number of monthselapsed
Enter Percentage of Tax Reduction (From Chart Below)
New Business Facility Tax Credit (Multiply Lines 5, 7 and 9)
Place the amount from Line 10 on the "Approved Tax Credit" Line
of the Gross Receipts Tax coupon.

Number of Wh ole Months
Percentage
Elapsed Since
Operations Commenced
1
through
12
months
13
through
24
months
25
through
36
months
37
through
48
months
49
through
60
months
61
through
72
months
73
through
84
months
85
through
96
months
97
through
108 months
109
through
120 months
Over
120 months

(Revised 01/14/13)

%

%
$

________________

FOR TARGETED AREAS ONLY
Number
of
Whole
Months

Percentage
of Tax
Reduction
90%
80%
70%
60%
50%
40%
30%
20%
10%
5%
0%

$
$
$
x
$
$

1
61
73
85
97
109
121
133
145
157
169

Elapsed Since
Operations Commenced
through
60
months
through
72
months
through
84
months
through
96
months
through
108
months
through
120
months
through
132
months
through
144
months
through
156
months
through
168
months
through
180
months
Over
180
months

of Tax
Reduction
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
5%
0%

*DF41513019999*

GENERAL INSTRUCTIONS FOR COMPLETION OF
FORM 402LTR9901
Every business which has been approved to receive the tax incentives for establishing or expanding a new
business facility in Delaware MUST complete FORM 402LTR9901, COMPUTATION SCHEDULE FOR
CLAIMING LICENSE TAX REDUCTION FOR APPROVED NEW BUSINESS FACILITY GROSS RECEIPTS in
order to claim the reduction. A separate form must be completed for each new or expanded business facility for
which a reduction is claimed. Separate forms are also required for each licensable activity conducted at each
facility. When completing multiple Forms 402LTR901 for the same licensable activity, you must apportion the
monthly exclusion for each licensable activity among the separate facilities based on the ratio of gross receipts
for each facility to total gross receipts. Please use the following formula:
Apportioned Monthly or
Quarterly Exclusion

=

Monthly or Quarterly
Exclusion

X

Gross Receipts from New or
Expanded Business Facility
Total Gross Receipts from
Each Licensable activity

The following example illustrates the operation of this formula for a manufacturer. Assume the following facts.
Company A establishes a new manufacturing facility (New Facility) in Delaware which produces $500,000 gross
receipts. The existing facility produces $1,000,000 gross receipts. The exclusion apportioned to the new facility
is calculated as follows:
Apportioned Monthly
Exclusion

=

Monthly Exclusion
$1,000,000

Apportioned Monthly exclusion $1,000,000
402LTR9901.

X

Gross receipts from New Facility
$500,000
Total Manufacturing Receipts
$1,500,000

X 33.33% = $333,300.

Enter this amount on Line 2 Form

SPECIFIC INSTRUCTIONS
Line 1
Line 2

Line 3
Line 4

Line 5
Line 6
Line 7
Line 8
Line 9
Line 10

Enter on Line 1 the total Delaware Gross Receipts for this facility.
(Separate forms are required if the business has more than one license.)
Enter Applicable Exclusion for:
Manufacturers
$1,000,000/Mo.
or
$3,000,000/Qtr.
Wholesalers
80,000/Mo.
or
240,000/Qtr.
Retailers
80,000/Mo.
or
240,000/Qtr.
Occupational Licensees
80,000/Mo.
or
240,000/Qtr.
Subtract Line 2 from Line 1.
Enter on Line 4 the Tax Rate:
Manufacturers
.00144
Wholesalers
.00307
Retailers
.00576
Occupational Licenses
.00307
Multiply Line 3 Times Line 4.
Amount of Gross Receipts on Line 1 generated by new or expanded facility.
The Percentage of Receipts on Line 1 generated by new or expanded facility.
(Line 6 divided by Line 1)
Number of Months since new or expanded facility was placed in service.
Using the number of months elapsed on Line 8, enter Percentage of Tax Reduction.
(Refer to the applicable Schedule on the front of this form.)
Multiply Lines 5, 7 and 9, place this amount on Line 10 and on the "Approved Tax Credit" Line of the
Gross Receipts Tax coupon.

Attach this form to the monthly or quarterly license tax gross receipts coupon. If you need assistance
completing this form, please call the Business Audit Bureau at (302) 577-8455.