and Renewal OMB No. 1545-1444 Form 8844 Community Employment Credit 2010 Department of the Treasury Attachment Internal Revenue Service ▶ Attach to your tax return. Sequence No. 99 Name(s) shown on return Identifying number

1 Enter the total qualified wages paid or incurred during calendar year 2010 only (see instructions) a Qualified empowerment zone wages ...... $ × 20% (.20) 1a b Skip line 1b (see instructions) ...... $ × 0% (.00) 1b

2 Enter the amount from line 1a. See instructions for the adjustment you must make to salaries and wages 2

3 Empowerment zone and renewal community employment credit from partnerships, S corporations, cooperatives, estates, and trusts ...... 3

4 Add lines 2 and 3. Partnerships and S corporations, report this amount on Schedule K; all others, go to line 5 ...... 4

5 Empowerment zone and renewal community employment credit included on line 4 from passive activities (see instructions) ...... 5

6 Subtract line 5 from line 4 ...... 6

7 Passive activity credit allowed for 2010 (see instructions) ...... 7

8 Carryforward of empowerment zone and renewal community employment credit to 2010 . . . . . 8

9 Carryback of empowerment zone employment credit from 2011 (see instructions) 9

10 Add lines 6 through 9. Cooperatives, estates, and trusts, go to line 11. All others, report this amount on Form 3800, line 24 ...... 10

11 Amount allocated to the patrons of the cooperative or the beneficiaries of the estate or trust (see instructions) ...... 11

12 Cooperatives, estates, and trusts. Subtract line 11 from line 10. Report this amount on Form 3800, line 24 ...... 12 For Paperwork Reduction Act Notice, see instructions. Cat. No. 16145S Form 8844 (2010) Form 8844 (2010) Page 2 General Instructions • Columbus, OH • Has his or her principal residence • Oklahoma City, OK within that empowerment zone while Section references are to the Internal performing those services (employees • Philadelphia, PA/Camden, NJ Revenue Code. who work in the Washington, DC, • Columbia/Sumter, SC empowerment zone may live anywhere What's New • Knoxville, TN in the District of Columbia). The Tax Relief, Unemployment Insurance • El Paso, TX See Qualified Employees on page 3 for Reauthorization, and Job Creation Act of a list of persons who are not qualified 2010 extended the empowerment zone • San Antonio, TX employees. employment credit. However, the • Norfolk/Portsmouth, VA renewal community employment credit • Huntington, WV/Ironton, OH Renewal Communities has expired for calendar years after Washington, DC. Under section 1400, 2009. Parts of the following areas are renewal parts of Washington, DC, are treated as communities. You can find out if your Purpose of Form an empowerment zone. For details, use business or an employee’s residence is the RC/EZ/EC Address Locator at located within a renewal community by Use Form 8844 to claim the www.hud.gov/crlocator or see Notice using the RC/EZ/EC Address Locator at empowerment zone and renewal 98-57, on page 9 of Internal Revenue www.hud.gov/crlocator or by calling community employment (EZRCE) credit. Bulletin 1998-47 at 1-800-998-9999. For tax years that include December 31, www.irs.gov/pub/irs-irbs/irb98-47.pdf. 2010, the credit is 20% of the Note. The renewal community Rural areas. Parts of the following rural employer’s qualified wages (up to designation does not apply to periods areas are empowerment zones. You can $15,000) paid or incurred during after 2009. find out if your business or an calendar year 2010 on behalf of qualified employee’s residence is located within a • Greene-Sumter County, AL empowerment zone employees. rural empowerment zone by using the • Mobile County, AL The credit is a component of the RC/EZ/EC Address Locator at • Southern Alabama general business credit, and a special www.hud.gov/crlocator or by calling • Los Angeles, CA tax liability limit applies. The allowable 1-800-998-9999. credit is figured in Part II of Form 3800, • Orange Cove, CA • Desert Communities, CA (part of General Business Credit. • Parlier, CA Riverside County) • San Diego, CA Empowerment Zones • Southwest Georgia United, GA (part of • , CA Urban areas. Parts of the following Crisp County and all of Dooly County) • , GA urban areas are empowerment zones. • Southernmost Delta, IL (parts of You can find out if your business or an Alexander and Johnson Counties and all • , IL employee’s residence is located within of Pulaski County) • Eastern Kentucky an urban empowerment zone by using • Kentucky Highlands, KY (part of Wayne • Central Louisiana the RC/EZ/EC Address Locator at County and all of Clinton and Jackson • New Orleans, LA www.hud.gov/crlocator or by calling Counties) 1-800-998-9999. • Northern Louisiana • Aroostook County, ME (part of • Ouachita Parish, LA • Pulaski County, AR Aroostook County) • Tucson, AZ • Lawrence, MA • Mid-Delta, MS (parts of Bolivar, • Lowell, MA • Fresno, CA Holmes, Humphreys, Leflore, Sunflower, • Los Angeles, CA (city and county) and Washington Counties) • , MI • Santa Ana, CA • Griggs-Steele, ND (part of Griggs • Flint, MI • New Haven, CT County and all of Steele County) • West Central Mississippi • Jacksonville, FL • Oglala Sioux Tribe, SD (parts of • Turtle Mountain Band of Chippewa, ND • Miami/Dade County, FL Jackson and Bennett Counties and all of • Camden, NJ Shannon County) • Chicago, IL • Newark, NJ • Gary/Hammond/East Chicago, IN • Middle Rio Grande FUTURO • Buffalo-Lackawanna, NY Communities, TX (parts of Dimmit, • Jamestown, NY • Boston, MA Maverick, Uvalde, and Zavala Counties) • Niagara Falls, NY • Baltimore, MD • Rio Grande Valley, TX (parts of • Rochester, NY • Detroit, MI Cameron, Hidalgo, Starr, and Willacy • Minneapolis, MN Counties) • Schenectady, NY • St. Louis, MO/East St. Louis, IL Qualified empowerment zone • Hamilton, OH • Cumberland County, NJ employee. A qualified empowerment • Youngstown, OH • New York, NY zone employee is any employee • Philadelphia, PA (full-time or part-time) of the employer • Charleston, SC • Syracuse, NY who: • Chattanooga, TN • Yonkers, NY • Performs substantially all of the • Memphis, TN • Cincinnati, OH services for that employer within an • Cleveland, OH empowerment zone in the employer’s • Corpus Christi, TX trade or business and • El Paso County, TX • Burlington, VT • Tacoma, WA • Yakima, WA • , WI Form 8844 (2010) Page 3 Qualified renewal community • Any individual employed by the Specific Instructions employee for calendar years before employer in a trade or business of which 2010. A qualified renewal community the principal activity is farming (see Note Complete lines 1 and 2 to figure the employee is any employee (full-time or below), but only if at the close of the tax current year credit for your trade or part-time) of the employer who: year the sum of the following amounts business. Skip lines 1 and 2 if you are exceeds $500,000. only claiming a credit that was allocated • Performs substantially all of the to you from a pass-through entity. services for that employer within a 1. The larger of the unadjusted bases renewal community in the employer’s or fair market value of the farm assets Line 1a—Qualified Empowerment trade or business and owned by the employer. Zone Wages • Has his or her principal residence 2. The value of the farm assets leased Enter the total qualified empowerment within that renewal community while by the employer. zone wages paid or incurred during the performing those services. Note. Certain farming activities are calendar year 2010. The credit must be See Qualified Employees below for a described in section 2032A(e)(5)(A) or (B). figured using only the wages that you list of persons who are not qualified Early termination of employee. paid or incurred in the calendar year that employees. Generally, an individual is not a qualified ended with or within your tax year. For example, if your tax year began on April Qualified Employees zone employee unless employed for at least 90 days. The 90-day requirement 1, 2010, and ended on March 31, 2011, Any person may be a qualified employee does not apply in the following you must figure wages based on the except the following. situations. calendar year that began on January 1, • Any relative of the employer described 2010, and ended on December 31, 2010. • The employee is terminated because of Wages paid after the end of the calendar in sections 152(d)(2)(A) through misconduct as determined under the 152(d)(2)(G). year may be used only to figure the applicable state unemployment credit claimed on the following year’s tax • A dependent of the employer compensation law. return. described in section 152(d)(2)(H). • The employee becomes disabled Qualified empowerment zone wages • If the employer is a corporation, any before the 90th day. However, if the are qualified wages paid or incurred by individual who bears any of the disability ends before the 90th day, the an employer for services performed by relationships described in sections employer must offer to reemploy the an employee while the employee is a 152(d)(2)(A) through 152(d)(2)(G), or is a former employee. qualified empowerment zone employee dependent, as described in section An employee is not treated as (defined earlier). The maximum wages 152(d)(2)(H), of an individual who owns terminated if the corporate employer is that may be taken into account for each (or is considered to own under section acquired by another corporation under employee is limited to $15,000. The 267(c)) more than 50% in value of the section 381(a) and the employee $15,000 amount for any employee is outstanding stock of the corporation. continues to be employed by the reduced by the amount of wages paid or • If the employer is an entity other than a acquiring corporation. Nor is a mere incurred during the calendar year on corporation, any individual who owns change in the form of conducting the behalf of that employee that are used in directly or indirectly more than 50% of trade or business treated as a figuring the work opportunity credit the capital and profits interest, including termination if the employee continues to (Form 5884). constructive ownership, in the entity. be employed in such trade or business and the taxpayer retains a substantial Line 1b—Qualified Renewal • If the employer is an estate or trust, Community Wages any individual who is a grantor, interest therein. beneficiary, or fiduciary of the estate or The renewal community employment trust (or a dependent, as described in Wages credit for calendar years after 2009 has section 152(d)(2)(H), of such an Wages are defined in section 51(c) and expired. Skip line 1b and enter the individual), or any individual who is a generally are wages (excluding tips) amount from line 1a on line 2. relative, as described in sections subject to the Federal Unemployment Qualified renewal community wages 152(d)(2)(A) through 152(d)(2)(G), of the Tax Act (FUTA), without regard to the are qualified wages paid or incurred by grantor, beneficiary, or fiduciary of the FUTA dollar limitation. The following are an employer for services performed by estate or trust. also treated as wages. an employee while the employee is a • Any person who owns (or is considered • Amounts paid or incurred by the qualified renewal community employee to own under section 318) more than 5% employer as educational assistance (defined earlier). The maximum wages of the outstanding or voting stock of the payments excludable from the that may be taken into account for each employer, or if not a corporate employer, employee’s gross income under section employee is limited to $10,000. The more than 5% of the capital or profits 127. However, this does not apply if the $10,000 amount for any employee is interest in the employer. employee has a relationship to the reduced by the amount of wages paid or employer described in section 267(b) or incurred during the calendar year on • Any individual employed by the 707(b)(1) (substituting "10 percent" for behalf of that employee that are used in employer for less than 90 days. For “50 percent” in those sections) or the figuring the work opportunity credit exceptions, see Early termination of employer and employee are engaged in (Form 5884). employee, later. trades or businesses under common • Any individual employed by the control (within the meaning of sections employer at any private or commercial 52(a) and (b)). golf course, country club, massage • Amounts paid or incurred by the parlor, hot tub facility, suntan facility, employer on behalf of an employee racetrack or other facility used for under age 19 for a youth training gambling, or any store the principal program operated by that employer in business of which is the sale of alcoholic conjunction with local education officials. beverages for consumption off premises. Form 8844 (2010) Page 4

Line 2 Line 7 You are not required to provide the In general, you must reduce your Enter the passive activity credit allowed information requested on a form that is deduction for salaries and wages and for the 2010 EZRCE credit from Form subject to the Paperwork Reduction Act certain educational and training costs by 8582-CR or Form 8810. See the unless the form displays a valid OMB the line 2 credit amount. You must make instructions for the applicable form for control number. Books or records this reduction even if you cannot take details. relating to a form or its instructions must the full credit this year because of the be retained as long as their contents tax liability limit. If you capitalized any Line 9 may become material in the costs on which you figured the credit, Use only if you amend your 2010 return administration of any Internal Revenue reduce the amount capitalized by the to carry back an unused credit from law. Generally, tax returns and return amount of the credit attributable to these 2011. information are confidential, as required by section 6103. costs. Line 11 Members of a controlled group of The time needed to complete and file A cooperative described in section this form will vary depending on corporations and businesses under 1381(a) must allocate to its patrons the common control are treated as a single individual circumstances. The estimated credit in excess of its tax liability limit. burden for individual taxpayers filing this employer in determining the credit. The Therefore, to figure the unused amount members share the credit in the same form is approved under OMB control of the credit allocated to patrons, the number 1545-0074 and is included in the proportion that they paid or incurred cooperative must first figure its tax qualifying wages. estimates shown in the instructions for liability. While any excess is allocated to their individual income tax return. The Line 5 patrons, any credit recapture applies as estimated burden for all other taxpayers if the cooperative had claimed the entire Enter the amount included on line 4 that who file this form is shown below. credit. is from a passive activity. Generally, a Recordkeeping .... 4 hr., 4 min. passive activity is a trade or business in Paperwork Reduction Act Notice. We Learning about the which you did not materially participate. law or the form .... 2 hr., 22 min. Rental activities are generally considered ask for the information on this form to passive activities, whether or not you carry out the Internal Revenue laws of Preparing and sending the form to the IRS .. 2 hr., 33 min. materially participate. For details, see the . You are required to Form 8582-CR, Passive Activity Credit give us the information. We need it to If you have comments concerning the Limitations (for individuals, trusts, and ensure that you are complying with these accuracy of these time estimates or estates), or Form 8810, Corporate laws and to allow us to figure and collect suggestions for making this form Passive Activity Loss and Credit the right amount of tax. simpler, we would be happy to hear from Limitations (for corporations). you. See the instructions for the tax return with which this form is filed.