§38 — General business credit

Unlike some other components ofthe general business credit, there is nothing in section 45A which makes the determination ofthe amount ofthe credit permissive." Thus, contrary to Uniband's assertions, the determination ofthe credit amount under section 45A--and consequently, the deduction limitation under section 280C-- occurs independently ofwhether the general business credit is currently fully allowed under section 38(a) or instead is limited by section 38(c)(1).

Petitioner argues that Ronnen and its progeny are distinguishable from the present case and finds support for its position that computer software is tangible personal property in a more recent decision of the Court of Appeals for the Sixth Circuit (the Sixth Circuit), Comshare, Inc.

To distinguish between them would deny economic reality. See Gregory v. Helvering, 293 U.S. 465, 470, 55 S.Ct. 266, 268, 79 L.Ed. 596 (1935) (refusing to "exalt artifice above reality" in determining tax liability). Moreover, such a holding would allow the common parent of a consolidated group, such as * * * [the parent], to move section 38 property outside the group without paying recapture taxes simply by first transferring the property to a member subsidiary and then distributing the subsidia

The alcohol fuel mixture income tax credit under section 40 and the biodiesel mixture income tax credit under section 40A are general business credits, and each is “allowed as a credit against” income tax pursuant to section 38.

Basic Structure Section 38 provides taxpayers with a current-year business credit that includes a credit for research expenses as determined under section 41(a).

Section 38 provides for a general business credit, which includes a low-income housing credit under section 42 .

Section 38 provides for a general business credit, which includes a low-income housing credit.

In relevant part, section 38 provides: SEC.

Overview of Arguments Respondent argues that Petitioners did not materially participate in the activities of Solar Farm, such that the investment credits Petitioners claimed under sections 38 and 48 with respect to Solar Farm are passive activity credits. Respondent also argues that Petitioners are precluded by section 469 from claiming such credits because they did not have any taxable income from passive activities in the years at issue and that Petitioners are liable for accuracy-related pena

— For purposes of section 38, the amount of the Indian employment credit determined under this section with respect to any employer for any taxable year is an amount equal to 20 percent of the excess (if any) of— (1) the sum of— (A) the qualified wages paid or incurred during such taxable year, plus (B) qualified employee health insurance costs paid or incurred duri

OPINION The issue for consideration is whether petitioner is entitled to ITC's under section 38 with respect to the costs of the Reserve Facility and the Mezzanine System to an extent 8Petitioner claimed an ITC on a Mezzanine System consisting of the following items: (1) Ground-level storage racks and cantilever shelving; (2) a horizontal steel structure joined to and mounted on the top of the ground-level racks; (3) plywood deckin

OPINION The issue for consideration is whether petitioner is entitled to ITC's under section 38 with respect to the costs of the Reserve Facility and the Mezzanine System to an extent 8Petitioner claimed an ITC on a Mezzanine System consisting of the following items: (1) Ground-level storage racks and cantilever shelving; (2) a horizontal steel structure joined to and mounted on the top of the ground-level racks; (3) plywood deckin

6661(a) 1985 $117,988 1986 11,630,928 $1,429,687 1987 4,924,255 1988 834,875 After concessions, the issue for decision is whether petitioner is liable for recapture in 1986 of investment tax credits (itc) claimed on certain section 38 assets that were transferred to a wholly owned subsidiary, the stock of which was then transferred out of the consolidated group in a tax-free transaction.

al property eligible for the investment tax credit. B. Arguments of the Parties Petitioner contends that the computer software it purchased during the years in issue constitutes tangible personal property eligible for the investment tax credit under section 38. Petitioner’s position stems from its interpretation of the “intrinsic value” test first enunciated by the Court of Appeals for the Fifth Circuit (the Fifth Circuit) in Texas Instruments, Inc. v. United States, 551 F.2d 599 (5th Cir. 1977)

Through cross-referencing sections 38(b)(1), 46(2), and 48(a), the Internal Revenue Code establishes that the section 48 business energy investment credit is one type ofsection 38 general business credit.

respondent. Nonetheless, our findings in this case are based on a preponderance of the evidence. See Arevalo v. Commissioner, 124 T.C. 244 (2005). _ 9 _ ADA Tax Credit Section 44(a) is included in calculating the general business credit pursuant to section 38. Sec. 38(a) and (b). Section 44(a) provides a disabled access credit for an "eligible small business". The amount of this credit is equal to 50 percent of the "eligible access expenditures" of an "eligible small business" that exceed $250 b

den to respondent. Nonetheless, our findings in this case are based on a preponderance of the evidence. See Arevalo v. Commissioner, 124 T.C. 244 (2005). ADA Tax Credit Section 44(a) is included in calculating the general business credit pursuant to section 38. Sec. 38(a) and (b). Section 44(a) provides a disabled access credit for an "eligible small business". The amount of this credit is equal to 50 percent of the "eligible access expenditures" of an "eligible small business" that exceed $250

den to respondent. Nonetheless, our findings in this case are based on a preponderance of the evidence. See Arevalo v. Commissioner, 124 T.C. 244 (2005). ADA Tax Credit Section 44(a) is included in calculating the general business credit pursuant to section 38. Sec. 38(a) and (b). Section 44(a) provides a disabled access credit for an "eligible _ 9 _ small business". The amount of this credit is equal to 50 percent of the "eligible access expenditures" of an "eligible small business" that exceed

Section 38 provides for a general business credit, which includes a low-income housing credit. Section 42 describes the method and manner taxpayers must use to compute their low-income housing credit. Petitioner failed to claim the credit while V&M Management owned the property for which he seeks the credit. Only now, after the purported qualifying

ble small business is entitled to a disabled access credit for eligible access expenditures for the taxable year. Secs. 38, 44. The amount of the disabled access credit is determined under section 44 and is allowed as a general business credit under section 38. In general, expenditures made to comply with the Americans With Disabilities Act of 1990 (ADA), Pub. L. 101-336, 101 Stat. 327, are eligible access expenditures. See sec. 44(c)(1); Fan v. Commissioner, 117 T.C. 32 (2001). Taxpayers are pr

Section 38 allows each petitioner to credit against his tax the amount of a general business credit. In relevant part, section 38 provides: SEC. 38. GENERAL BUSINESS CREDIT. (a) Allowance of Credit.--There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of-- (1) the business credi

Section 38 allows each petitioner to credit against his tax the amount of a general business credit. In relevant part, section 38 provides: SEC. 38. GENERAL BUSINESS CREDIT. (a) Allowance of Credit.--There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of-- (1) the business credi

t contain options to renew, and the payment amounts and lease terms were different. C & C purchased the buses for the sole purpose of leasing them to Great American. The buses were qualified investment property which qualified for an ITC pursuant to section 38. The useful life of each of the buses was 9 years. The Charlsons’ subsequent tax returns claimed the ITC carried over from 1985 and passed through C & C. In a prior audit, respondent examined the Charlsons’, but not C & C’s, 1989 Federal i

t contain options to renew, and the payment amounts and lease terms were different. C & C purchased the buses for the sole purpose of leasing them to Great American. The buses were qualified investment property which qualified for an ITC pursuant to section 38. The useful life of each of the buses was 9 years. The Charlsons’ subsequent tax returns claimed the ITC carried over from 1985 and passed through C & C. In a prior audit, respondent examined the Charlsons’, but not C & C’s, 1989 Federal i

Petitioners argue that these “excluded” cattle were thus placed in service in 1987 and that DGE 84-3 and SGE 84-5 are entitled to investment credits under certain transition rules provided to section 38 concerning property purchased under a binding contract.

Petitioners argue that these “excluded” cattle were thus placed in service in 1987 and that DGE 84-3 and SGE 84-5 are entitled to investment credits under certain transition rules provided to section 38 concerning property purchased under a binding contract.

Petitioners argue that these “excluded” cattle were thus placed in service in 1987 and that DGE 84-3 and SGE 84-5 are entitled to investment credits under certain transition rules provided to section 38 concerning property purchased under a binding contract.

Petitioners argue that these “excluded” cattle were thus placed in service in 1987 and that DGE 84-3 and SGE 84-5 are entitled to investment credits under certain transition rules provided to section 38 concerning property purchased under a binding contract.

Petitioners argue that these “excluded” cattle were thus placed in service in 1987 and that DGE 84-3 and SGE 84-5 are entitled to investment credits under certain transition rules provided to section 38 concerning property purchased under a binding contract.

Petitioners argue that these “excluded” cattle were thus placed in service in 1987 and that DGE 84-3 and SGE 84-5 are entitled to investment credits under certain transition rules provided to section 38 concerning property purchased under a binding contract.

Petitioners argue that these “excluded” cattle were thus placed in service in 1987 and that DGE 84-3 and SGE 84-5 are entitled to investment credits under certain transition rules provided to section 38 concerning property purchased under a binding contract.

Petitioners argue that these “excluded” cattle were thus placed in service in 1987 and that DGE 84-3 and SGE 84-5 are entitled to investment credits under certain transition rules provided to section 38 concerning property purchased under a binding contract.

Petitioners argue that these “excluded” cattle were thus placed in service in 1987 and that DGE 84-3 and SGE 84-5 are entitled to investment credits under certain transition rules provided to section 38 concerning property purchased under a binding contract.

Petitioners argue that these “excluded” cattle were thus placed in service in 1987 and that DGE 84-3 and SGE 84-5 are entitled to investment credits under certain transition rules provided to section 38 concerning property purchased under a binding contract.

Petitioners argue that these “excluded” cattle were thus placed in service in 1987 and that DGE 84-3 and SGE 84-5 are entitled to investment credits under certain transition rules provided to section 38 concerning property purchased under a binding contract.

allowable. (4) Whether petitioner is liable for an addition to tax pursuant to section 6653(a)(1) and (2) for negligence or 2(...continued) with respect to the Liberty Mutual policy to $11,151,675. In the notice of deficiency, respondent disallowed sec. 38 investment tax credits of $1.6 million and $19,006,175 reported by petitioner in 1983 and 1984, respectively. On Sept. 15, 1997, the parties filed a Joint Motion to Sever, requesting that the Court sever the investment tax credit issue. On Se

Section 38 provides for a credit against tax for the purchase of qualified property. To the extent such credit was not used in the tax year, it may be carried back 3 years or forward 15 years. Sec. 39. A credit carried forward to a tax year beginning after June 30, 1987, must be reduced by 35 percent. Sec. 49(c). Respondent argues that petitioner h

Section 38 provides for a credit against tax for the purchase of qualified investment property. Secs. 38(a) and (b)(1), 46(a). "Qualified investment property" is defined to include only property with respect to which depreciation is allowable and which has a useful life of 3 years or more. Secs. 46(c)(1) and (2), 48(a)(1). To the extent that a cred

General Business Credits Section 38 permits taxpayers to claim a variety of business credits against federal income tax.

For example, the section 38 general business credit is allowed only for the taxable year in which the taxpayer first places section 38 property in service.

Section 38 permits a general business credit against tax equal to the sum of various enumerated credits, including the investment tax credit under section 46. For all years relevant to these cases, the investment tax credit included the energy credit under section 48. See § 46(2). Relevantly, section 48 provided that the “energy credit for any taxa

Discussion Section 38 permits taxpayers to claim a variety of business credits against federal income tax.

Section 45A(a) provides that the amount of the Indian employment credit with respect to - 47 - [*47] any employer for any taxable year is an amount equal to 20 percent of the excess (if any) of-- (1) the sum of-- (A) the qualified wages paid or incurred during such taxable year, plus (B) qualified employee health insurance co

For purposes of section 38, a taxpayer's research credit includes 20% of any excess of the taxpayer's "qualified research expenses for the taxable year" over a prescribed "base amount".

1940), § 38 B.T.A 16 (1938); Cooley v. Commissioner, T.C. Memo. 2004-49, slip op. at 20. On their 2005 return petitioners reported gross income of$110,362; on their 2006 return they reported gross income of$49,522; on their 2007 return they reported gross income of$2,668; and on their 2008 return they reported gross income of$35,572. However, it is undisp

Court ofAppeals for the Fifth Circuit considered whether seismic field tapes and output tapes constituted tangible personal property for purposes ofthe section 38 investment tax credit (ITC)." A subsidiary ofthe taxpayer in that case was, like petitioner, engaged in the business ofcollecting, processing, and selling or licensing offshore seismic data to companies in the oil and gas industry.

s and availability for a specifically assigned function". Sec. 1.167(a)-11(e)(1)(i), Income Tax Regs.; see also sec. 1.46- 3(d)(1)(ii), Income Tax Regs. (using the same definition of"placed in service" for purposes ofthe investment tax credit under section 38). To be considered placed in service, a facility must be ready and available for that specific function on a regular basis. See Consumers Power Co. v. Commissioner, 89 T.C. 710, 724-725 (1987); Piggly Wiggly S., Inc. v. Commissioner, 84 T.C

s and availability for a specifically assigned function". Sec. 1.167(a)-11(e)(1)(i), Income Tax Regs.; see also sec. 1.46- 3(d)(1)(ii), Income Tax Regs. (using the same definition of"placed in service" for purposes ofthe investment tax credit under section 38). To be considered placed in service, a facility must be ready and available for that specific function on a regular basis. See Consumers Power Co. v. Commissioner, 89 T.C. 710, 724-725 (1987); Piggly Wiggly S., Inc. v. Commissioner, 84 T.C

s and availability for a specifically assigned function". Sec. 1.167(a)-11(e)(1)(i), Income Tax Regs.; see also sec. 1.46- 3(d)(1)(ii), Income Tax Regs. (using the same definition of"placed in service" for purposes ofthe investment tax credit under section 38). To be considered placed in service, a facility must be ready and available for that specific function on a regular basis. See Consumers Power Co. v. Commissioner, 89 T.C. 710, 724-725 (1987); Piggly Wiggly S., Inc. v. Commissioner, 84 T.C

except to the extent the distribution exceeds the partner's adjusted basis. See secs. 721, 731. These nonrecognition rules, however, do not apply to a transaction between a partnership and a partner not acting in his or her capacity as a partner.38 Sec. 38Fetitioner contends that in the FPAA and at trial respondent conceded that Virginia Conservation was acting in its capacity as a partner and that SWF was a (continued...) -43- [*43] 1.721-1(a), Income Tax Regs.;.s_ee sec. 707(a)(1). In those s

38a-92a (West 2012). In 1991 the Washington Supreme Court reached the same conclusion. See Seattle-First Nat'l Bank v. Washington Ins. Guar. Ass'n, 804 P.2d 1263 (Wash. 1991). The State of Washington had established an insurance guaranty fund to compensate policy- holders in the event ofinsolvency ofan insurance company providing insurance cov

tal gain overthe consolidatednet short-term capital loss (see §1.1502-41A for the determination ofthe consolidated net long-term capital gain and the consolidatednet short-term capital loss)); - 9 - (i) [Reserved] (j) The tax imposed by section 1333 on war loss recoveries; and by allowing as a credit against such taxes the investment credit under section 38 (see §1.1502-3) and the foreign tax credit under section 33 (see §1.1502-4).

38-33.3-103(25) (2013). And the Arizona legislature also includes within the definition of real estate “interests which by custom, usage or law pass with a conveyance of land though not described in the contract of sale or instrument of conveyance.” Ariz. Rev. Stat. Ann. sec. 33 — 1202(19) (2007) (West). We therefore firmly reject respondent’s

apital gain over the consolidated net short-term capital loss (see §1.1502-41A for the determination of the consolidated net long-term capital gain and the consolidated net short-term capital loss)); (i) [Reserved] (j) The tax imposed by section 1333 on war loss recoveries; and by allowing as a credit against such taxes the investment credit under section 38 (see §1.1502-3) and the foreign tax credit under section 33 (see §1.1502-4).

the United States; possession tax credit); sec. 30 (credit for qualified electric vehicles); sec. 30A (Puerto Rico economic activity credit); sec. 30B (alternative motor vehicle credit); sec. 30C (alternative fuel vehicle refueling property credit); sec. 38 (general business credit); sec. 53 (credit for prior year minimum tax liability); and sec. 54 (credit to holders ofclean renewable energy bonds). In using that same phrase, the general business credit under section 38 brings along with it mor

the United States; possession tax credit); sec. 30 (credit for qualified electric vehicles); sec. 30A (Puerto Rico economic activity credit); sec. 30B (alternative motor vehicle credit); sec. 30C (alternative fuel vehicle refueling property credit); sec. 38 (general business credit); sec. 53 (credit for prior year minimum tax liability); sec. 54 (credit to holders of clean renewable energy bonds). In using that same phrase, the general business credit under section 38 brings along with it more t

Through cross- referencing sections 38(b)(1), 46(2), and 48(a), the Internal Revenue Code establishes that the section 48 business energy investment credit is one type of section 38 general business credit.

The regulation is entitled "Definition ofsection 38 property," referring toformer section 38," which dealt with the investment tax credit (ITC).20 As a result, we also look to caselaw interpreting the ITC to deternhine whether section 1.48-1(e), Income Tax Regs., classifies AmeriSouth's property as structural components forpurposes ofdepreciation.

38-39-110 (1982)); see also Colo. Rev. Stat. sec. 38-38-501 (2010). On the basis of this case and the statute, we agree with petitioners that the foreclosure sale extinguished the access easement. We recognize that there is always a potential for litigation to clear title. However, we do not think that a potential buyer of the Subject Properti

38-30.5- 107 (2010), "Conservation easements ln gross may, in whole or in part, be released, terminated, extinguished, or abandoned by merger with the underlying fee interest in the servient land or water rights or in any other manner in which easements may be lawfully terminated, released, extinguished or abandoned." Petitioners recognize tha

38-30.5- 107 (2010), "Conservation easements ln gross may, in whole or in part, be released, terminated, extinguished, or abandoned by merger with the underlying fee interest in the servient land or water rights or in any other manner in which easements may be lawfully terminated, released, extinguished or abandoned." Petitioners recognize tha

38-39-110 (1982)); see also Colo. Rev. Stat. sec. 38-38-501 (2010). On the basis of this case and the statute, we agree with petitioners that the foreclosure sale extinguished the access easement. We recognize that there is always a potential for litigation to clear title. However, we do not think that a potential buyer of the Subject Properti

Disabled Access Credit - For purposes of the general business credit under section 38, (cid:127)sec'tion 44(a) provides adisabled access credit for certain small businesses .

Respondent's adjustments resulted in total allowable research credits to petitioner of $921,141 and $97,862 for 1998 and 1999, respectively, and total reductions to petitioner's allowable section 38 general business credit, as set forth in the notice of deficiency, of $216,357 and $623,684, respectively, for these years .

As pertinent here, section 38.(a)(2) allows as a credit against the taxes imposed for,,a taxable year by subtitle .A (relating to income taxes), chapter 1, of the Code (chapter 1) the amountof the current year business credit .13 Section 38(b) defines the term "the amount-of the current, year business credit" as .the sum of certain credits listed :in that section, in

38-212 2 L "Mental health practitioner" was the name of the license held-by petitioner as well as the title of the position she held at Corrections . 3 - (LexisNexis 2008)3, hold a master's degree, and have 3,000 hours of postdegree supervised counseling experience . In addition to .being licensed as a mental health practitioner, petitioner w

Disabled Access Credit For purposes of the general business credit under section 38, section 44(a) provides a disabled access-credit for certain small businesses .

business credit under section 38, section 44(a) provides,a disabled access credit for certain small businesses .

101-247, at 1199-1200 (1989).] As changed by Congress in 1989 and as in effect for the year at issue, section 41(a) provides that for purposes of section 38 the research credit determined under section 41 for the taxable year is an amount equal to the sum of (1) 20 percent of the excess, if any, of (a) the taxpayer’s qualified research expenses for the taxable year over (b) the base amount and (2) 20 percent of the taxpayer’s basic research payments determined under section 41(e)(1)(A).

Respondent’s adjustments resulted in total allowable research credits to petitioner of $921,141 and $97,862 for 1998 and 1999, respectively, and total reductions to petitioner’s allowable section 38 general business credit, as set forth in the notice of deficiency, of $216,357 and $623,684, respectively, for these years.

ADA Tax Credits For purposes of the general business credit under section 38, section 44(a) provides a disabled access credit for certain small businesses.

ions for the VA medical care program. Distributions from the fund constitute payments of benefits. Because the distribution here in question constitutes a veterans’ benefit payable under a law administered by the VA, it is exempt from taxation under section 38 U.S.C. section 5301(a) (2000) and section 139(a)(3). IV. Conclusion To reflect the foregoing, Decision will be entered for petitioner. - 33 - APPENDIX 38 U.S.C. Section 1718 (2000): Section 1718. Therapeutic and rehabilitative activities (

The Court in Whiteco decided whether advertising signs (outdoor billboards) constitute "tangible personal property" within the meaning of section 48(a)(1)(A), and therefore, may qualify for the investment credit provided in section 38.2 The statute, definitions, and concepts in Whiteco are sufficiently similar to the ones we consider so that we find it appropriate to use those guidelines to assist the Court in this case.

Disabled Access Credits For purposes of the general business credit under section 38, section 44(a) provides a disabled access credit for certain small businesses .

at 672-673. The Court in Whiteco Indus., Inc. decided whether advertising signs (outdoor billboards) constitute “tangible personal property” within the meaning of section 48(a)(1)(A), and therefore, may qualify for the investment credit provided in section 38. The statute, definitions, and concepts in Whiteco Indus., Inc. are sufficiently similar to the ones we consider so that we find it appropriate to use those guidelines to assist the Court in this case. Although there are six tests, they ov

ions for the VA medical care program. Distributions from the fund constitute payments of benefits. Because the distribution here in question constitutes a veterans’ benefit payable under a law administered by the VA, it is exempt from taxation under section 38 U.S.C. sec. 5301(a) (2000) and section 139(a)(3). IV. Conclusion To reflect the foregoing, Decision will be entered for petitioner. APPENDIX 38 U.S.C. Section 1718 (2000): § 1718. Therapeutic and rehabilitative activities (a) In providing

Initial Eligibility for Investment and Energy Tax Credits A substantial part of the project’s assets constituted new section 38 property, qualifying for general business credits (sometimes referred to as investment credits).

ADA Tax Credit For purposes of the general business credit under section 38, section 44(a) provides a disabled access credit for certain small businesses.

at 254, we discussed in some detail the interplay of the general business credit under section 38 and the disabled access credit under section 44(a).

ADA Tax Credit In Arevalo, we discussed in some detail the interplay of the general business credit under section 38 and the disabled access credit under section 44(a).

ADA Tax Credit For purposes of the general business credit under section 38, section 44(a) provides a disabled access credit for certain small businesses.

's obligation to timely file all his returns for 5 years was an express condition and so, as a general rule, is subject to strict performance. See Calamari & Perillo, The Law of Contracts, sec. 11.9, at 403 (4th ed. 1998); 13 Williston on Contracts, sec. 38:6, at 384-385 (4th ed. 2000). The relevant question should be whether there is an "excuse of conditions" that may apply. Under that doctrine, petitioner would have to show that (1) strict compliance with the timely filing condition would resu

ervice during the first year - 14 - of the partnership’s existence (as revised by the formula discussed above), times $4,000 per head. Cattle will be considered placed in service in the year the partnership is formed. • All cattle purchased are new section 38 property. * * * * * * * • Satisfaction of obligations for interest, principal payments and management fees by transferring calves and culled cows will constitute ordinary income to the investor partnerships. This convention is consistent wi

The Secretary never issued regulations under section 50(b)(2), but the existing Treasury regulations under old section 48(a)(3) have remained unchanged since the time of their issuance in 1964.6 The definition of “section 179 property” largely matches old section 48’s definition of “section 38 property” that was in the 1954 Code.

(cid:16)042 All cattle purchased are new section 38 property.

Before enactment of OBRA, section 48(f) required trusts to apportion a qualified investment in residential energy property between the trust and its beneficiaries on the basis of the trust’s income allocable to each. Section 50(d)(6) provides that section 48(f), as was in effect on the day before enactment of OBRA, applies for purposes of

In the notice of deficiency, respondent disallowed the IEC because petitioner had not demonstrated that it met the requirements to claim the credit and allowed an additional deduction for wages or salary expense because of the disallowed credit.7 Discussion Section 38 allows a taxpayer to claim against his tax a general business credit, which includes the amount of the current year business credit.

38; see also sec. 50(d) (providing that, in calculating the general business credit authorized by sections 46, 48, and 50, the rules of section 48(f) relating to certain estates and trusts continue to apply). 2(...continued) because the original return reported distributions incorrectly as interest. 3Unless otherwise indicated, all section ref

Discussion Section 38 allows a taxpayer to claim against his tax a general business credit, which includes the amount of the current year business credit.

The balance of the 1995 credit ($1,910) was treated as a carryforward general business credit on a Form 3800, General Business Credit, included with petitioners’ 1996 Federal income tax return. Taking into account applicable limitations, they claimed a general business credit of $1,114 for that year, all of which is attributable to the pur

(a) General Rule.–-For purposes of section 38 [General Business Credit], in the case of an eligible small business, the amount of the disabled access credit determined under this section for any taxable year shall be an amount equal to 50 percent of so much of the eligible access expenditures for the taxable year as exceed $250 but do not exceed $10,250.

Discussion A taxpayer who claims an ITC must maintain various records establishing certain important facts pertaining to each item of section 38 property for which an ITC has been claimed.

38.1301- 38.1408 (1997), for all public school full-time, part-time, teaching and nonteaching, employees, including short-term and interim employees except for a few specific groups exempt by law. Because petitioner’s position with WCC was not exempt by law, she was automatically enrolled in the plan as a part-time employee in 1996. - 3 - Sec

The balance of the 1995 credit ($1,910) was treated as a carryforward general business credit on a Form 3800, General Business Credit, included with petitioners’ 1996 Federal income tax return. Taking into account applicable limitations, they claimed a general business credit of $1,114 for that year, all of which is attributable to the pur

Further, with regard to estimated DRR costs that are capitalized and that relate specifically to oil wells and to cleanup of oil well sites, Exxon claims that investment tax credits under section 38 and intangible drilling costs under section 263(c) should be allowed.

38.1301-38.1408, and is provided by Michigan on a statewide basis to all of Michigan’s public school employees. Section 108 of that Act, Mich. Comp. Laws sec. 38.1408, provides the following: This state intends that the retirement system be a qualified pension plan created in trust under section 401 of the internal revenue code and that the tr

Further, with regard to estimated DRR costs that are capitalized and that relate specifically to oil wells and to cleanup of oil well sites, Exxon claims that investment tax credits under section 38 and intangible drilling costs under section 263(c) should be allowed.

112. Unlike other corporations, an insurance company's net income included a deduction for the “net addition, if any, required by law to be made within the year to reserve funds”. Id. This deduction was the subject of much litigation by casualty companies, and the judicial interpretations on the breadth of that deduction were not

38-53-330 (Law. Co-op. 1989). - 4 - each month, on the basis of the bonds outstanding on that date, and petitioner had until the 16th of the month to make any additions required to ensure that the amounts maintained with the clerk were equal to at least 25 percent of the face amount of bonds outstanding on the first of the month. See S.C. Cod

21, 50-51 (1997), we held that in deciding whether a property is section 1245 property, Congress intended the same tests to be used as were applied for purposes of deciding whether property was "section 38 property" for purposes of the investment tax credit under section 48 prior to the amendment of section 48 in the Omnibus Budget Reconciliation Act of 1990 (OBRA), Pub.

38-10-117 (repl. vol. 1982) (Colorado fraudulent conveyance statute). In support of respondent's con- tention with respect to Ms. Scott, respondent relies only on the Colorado fraudulent conveyance statute. Petitioners counter that neither of them is liable under the Colorado statutes on which respondent relies. We shall turn first to the Colo

income tax liability as provided in section 38 (general business credits).

A "qualified investment" must be section 38 property.

income tax liability as provided in section 38 (general business credits).

income tax liability as provided in section 38 (general business credits).

the taxable income of petitioners' group for each of those years was offset in the computation in those returns of the consolidated taxable income by net operating losses of members of the Amax group; and (2) general business credits (credits) under section 38 of petitioners' group for each of the years 1984, 1985, and 1986 (consisting of investment tax credits for those years and jobs credits for 1984 and 1985) were carried back - 39 - pursuant to section 39 to 1981 and 1983 in the respective a

The term “private stockholder - 93 - or individual” also appears in section 38 of the Tariff Act of 1909, commonly called the Corporation Excise Tax Act of 1909, Pub.

The Court held: "Cattle are section 38 property and therefore eligible for the credit.

The term “private stockholder or individual” also appears in section 38 of the Tariff Act of 1909, commonly called the Corporation Excise Tax Act of 1909, Pub.

Section 1.1245-3(b)(1), Income Tax Regs., defines personal property as "(1) Tangible personal property (as defined in paragraph (c) of § 1.48-1, relating to the definition of 'section 38 property' for purposes of the investment credit)".

38 (West 1980). In holding that the donations were not charitable contributions, the Court stated: First, petitioner’s payments were made in compliance with a Massachusetts law requiring the donation of the "Net Proceeds" of petitioner's beano games. Given the legal compulsion surrounding petitioner's making of the donations, they can hardly q

38 (West 1980). In holding that the donations were not charitable contributions, the Court stated: First, petitioner’s payments were made in compliance with a Massachusetts law requiring the donation of the "Net Proceeds" of petitioner's beano games. Given the legal compulsion surrounding petitioner's making of the donations, they can hardly q

Section 1.1245-3(b)(l), Income Tax Regs., defines personal property as “(1) Tangible personal property (as defined in paragraph (c) of § 1.48 — 1, relating to the definition of ‘section 38 property’ for purposes of the investment credit)”.

the taxable income of petitioners’ group for each of those years was offset in the computation in those returns of the consolidated taxable income by net operating losses of members of the Amax group; and (2) general business credits (credits) under section 38 of petitioners’ group for each of the years 1984, 1985, and 1986 (consisting of investment tax credits for those years and jobs credits for 1984 and 1985) were carried back pursuant to section 39 to 1981 and 1983 in the respective amounts

Section 1.1245-3(b)(1), Income Tax Regs., defines personal property as "(1) Tangible personal property (as defined in paragraph (c) of § 1.48-1, relating to the definition of 'section 38 property' for purposes of the investment credit)".

Although petitioners originally claimed an investment credit on partnership section 38 property for the 1985 taxable year, they subsequently filed an amended return deleting the credit.

Section 38 allows a credit for investment in certain depreciable property. The amount of the credit is limited to a percentage of a taxpayer’s qualified investment in section 38 property. Sec. 46(a). Qualified investment in new property is a percentage of the property’s basis, generally its cost. Secs. 46(c)(1), 1012. The lessor of the property, he

Section 46(c)(1) provides that the term - 59 - "qualified investment" means with respect to any taxable year the aggregate of the applicable percentage of the basis of each new section 38 property, as defined in section 48(b), placed in serv- ice by the taxpayer during such year plus the applicable percent- age of the cost of each used section 38 property, as defined in section 48(c)(1), placed in service by the taxpayer during such year.

Norstrud, respondent determined that in computing the amount of property eligible for investment credit for 1983, the partnership is not entitled to take into account, as qualifying section 38 property, the alleged basis of the partnership in a video disk in the amount of $8,436,271.

- 8 - Section 38 allows a credit for investment in certain depreciable property. The amount of the credit is limited to a percentage of a taxpayer’s qualified investment in section 38 property. Sec. 46(a). Qualified investment in new property is a percentage of the property’s basis, generally its cost. Secs. 46(c)(1), 1012. The lessor of the property, he

he notice of deficiency shows that respondent determined the deficiency after making a number of adjustments to petitioner's items of income and expense and after allowing petitioner certain credits, including the general business credit provided by section 38. Respondent computed petitioner's general business credit on the assumption that petitioner is entitled to a general business credit carryover of $18,944,258 from its taxable year ended September 30, 1988. Petitioner invoked this Court's j

Although petitioners originally claimed an investment credit on partnership section 38 property for the 1985 taxable year, they subsequently filed an amended return deleting the credit.