Any wages or other expenses taken into account in determining the American Samoa economic development credit may not be taken into account in determining the research credit under section 41.
Enter 60% of the sum of:
The aggregate amount of the corporation's qualified wages for the tax year and
The allocable employee fringe benefit expenses of the corporation for the tax year.
Employer contributions to stock bonus, pensions, profit-sharing, or annuity plans,
Employer-provided health or accident plan coverage for the employees, and
The cost of life or disability insurance provided to employees.
Any amount treated as qualified wages may not be treated as an employee fringe benefit expense.
Qualified tangible property means any tangible property used by the corporation in the active conduct of a trade or business within American Samoa.
Short-life qualified tangible property is qualified tangible property that is 3-year or 5-year property under section 168.
Medium-life qualified tangible property is qualified tangible property that is 7-year or 10-year property under section 168.
Long-life qualified tangible property is qualified tangible property that is not short-life or medium-life qualified tangible property.
For more information, see section 936(i)(4).
In the case of any qualified tangible property to which section 168 (as in effect before the date of enactment of the Tax Reform Act of 1986) applies, any references above to section 168 are to that Code section as then in effect.
For more information on depreciation, see the Instructions for Form 4562 and Publication 946.
Include the line 7 credit on your income tax return on the same line on which the qualified electric vehicle (QEV) credit is reported. Enter “Form 5735” and the amount next to the entry space for that line. On the 2012 Form 1120, the QEV is reported on Schedule J, line 5b. The credit must also be included on the QEV line of the following forms as applicable: Form 3800, Form 6478, Form 8835, Form 8860, Form 8910, Form 8911, and Form 8912.
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