OMB No. 1545-1444 and Renewal Form 8844 Community Employment Credit 2008 Department of the Treasury ᮣ Attach to your tax return. Attachment Internal Revenue Service Sequence No. 99

Name(s) shown on return Identifying number

1 Enter the total qualified wages paid or incurred during calendar year 2008 only (see instructions) a Qualified empowerment zone wages $ X 20% (.20) 1a b Qualified renewal community wages $ X 15% (.15) 1b

2 Add lines 1a and 1b. See instructions for the adjustment you must make to salaries and wages 2

3 Employment zone and renewable 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 2008 (see instructions) 7

8 Carryforward of empowerment zone and renewal community employment credit to 2008 8

9 Carryback of empowerment zone and renewal community employment credit from 2009 (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 (2008)

Form 8844 (2008) Page 2

General Instructions ● Knoxville, TN See Qualified Employees on page 3 ● El Paso, TX for a list of persons who are not Section references are to the Internal qualified employees. ● San Antonio, TX Revenue Code.

● Norfolk/Portsmouth, VA Renewal Communities Purpose of Form ● Huntington, WV/Ironton, OH Parts of the following areas are renewal Use Form 8844 to claim the Washington, DC. Under section 1400, empowerment zone and renewal communities. You can find out if your parts of Washington, DC, are treated as business or an employee’s residence is community employment (EZRCE) credit. an empowerment zone. For details, use For tax years that include December 31, located within a renewal community by the RC/EZ/EC Address Locator at using the RC/EZ/EC Address Locator at 2008, the credit is: www.hud.gov/crlocator or see Notice www.hud.gov/crlocator or by calling ● 20% of the employer’s qualified 98-57, on page 9 of Internal Revenue 1-800-998-9999. wages (up to $15,000) paid or incurred Bulletin 1998-47 at during calendar year 2008 on behalf of www.irs.gov/pub/irs-irbs/irb98-47.pdf. ● Greene-Sumter County, AL ● Mobile County, AL qualified empowerment zone employees Rural areas. Parts of the following rural

plus areas are empowerment zones. You can ● Southern Alabama ● 15% of the employer’s qualified find out if your business or an ● Los Angeles, CA wages (up to $10,000) paid or incurred employee’s residence is located within a ● Orange Cove, CA during calendar year 2008 on behalf of rural empowerment zone by using the ● Parlier, CA qualified renewal community employees. RC/EZ/EC Address Locator at ● San Diego, CA www.hud.gov/crlocator or by calling The credit is a component of the general 1-800-998-9999. ● , CA business credit, and a special tax liability limit applies. The allowable credit is ● Desert Communities, CA (part of ● , GA figured in Part II of Form 3800, General Riverside County) ● , IL Business Credit. ● Southwest Georgia United, GA (part of ● Eastern Kentucky Crisp County and all of Dooly County) ● Central Louisiana Empowerment Zones ● Southernmost Delta, IL (parts ● New Orleans, LA Urban areas. Parts of the following of Alexander and Johnson Counties and ● Northern Louisiana all of Pulaski County) urban areas are empowerment zones. ● Ouachita Parish, LA You can find out if your business or an ● Kentucky Highlands, KY (part of ● Lawrence, MA employee’s residence is located within Wayne County and all of Clinton and

an urban empowerment zone by using Jackson Counties) ● Lowell, MA

the RC/EZ/EC Address Locator at ● Aroostook County, ME (part of ● , MI www.hud.gov/crlocator or by calling Aroostook County) ● Flint, MI 1-800-998-9999. ● Mid-Delta, MS (parts of Bolivar, ● West Central Mississippi

● Pulaski County, AR Holmes, Humphreys, Leflore, Sunflower, ● Turtle Mountain Band of Chippewa, ND

● Tucson, AZ and Washington Counties) ● Camden, NJ

● Fresno, CA ● Griggs-Steele, ND (part of Griggs ● Newark, NJ County and all of Steele County) ● Los Angeles, CA (city and county) ● Buffalo-Lackawanna, NY ● Oglala Sioux Tribe, SD (parts of ● Santa Ana, CA ● Jamestown, NY Jackson and Bennett Counties and all of ● New Haven, CT ● Niagara Falls, NY Shannon County) ● Jacksonville, FL ● Rochester, NY ● Middle Rio Grande FUTURO ● Miami/Dade County, FL Communities, TX (parts of Dimmit, ● Schenectady, NY

● Chicago, IL Maverick, Uvalde, and Zavala Counties) ● Hamilton, OH

● Gary/Hammond/East Chicago, IN ● Rio Grande Valley, TX (parts of ● Youngstown, OH

● Boston, MA Cameron, Hidalgo, Starr, and Willacy ● Philadelphia, PA Counties) ● Baltimore, MD ● Charleston, SC Qualified empowerment zone ● Detroit, MI ● Chattanooga, TN employee. A qualified empowerment ● Minneapolis, MN ● Memphis, TN zone employee is any employee ● St. Louis, MO/East St. Louis, IL (full-time or part-time) of the employer ● Corpus Christi, TX

● Cumberland County, NJ who: ● El Paso County, TX

● New York, NY ● Performs substantially all of the ● Burlington, VT

● Syracuse, NY services for that employer within an ● Tacoma, WA empowerment zone in the employer’s ● Yonkers, NY ● Yakima, WA trade or business and ● Cincinnati, OH , WI ● Has his or her principal residence ● ● Cleveland, OH within that empowerment zone while ● Columbus, OH performing those services (employees ● Oklahoma City, OK who work in the Washington, DC, ● Philadelphia, PA/Camden, NJ empowerment zone may live anywhere ● Columbia/Sumter, SC in the District of Columbia).

Form 8844 (2008) Page 3

Qualified renewal community ● Any individual employed by the Specific Instructions employee. A qualified renewal employer in a trade or business for community employee is any employee which the principal activity is farming Complete lines 1 and 2 to figure the (full-time or part-time) of the employer (see Note below), but only if at the close current year credit for your trade or who: of the tax year the sum of the following business. Skip lines 1 and 2 if you are ● Performs substantially all of the amounts exceeds $500,000. only claiming a credit that was allocated

services for that employer within a 1. The larger of the unadjusted bases to you from a pass-through entity. 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 performing those services. calendar year 2008. The credit must be Note. Certain farming activities are 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 paid or incurred in the calendar year that employees. Early termination of employee. ended with or within your tax year. For Generally, an individual is not a qualified example, if your tax year began on April Qualified Employees zone employee unless employed for at 1, 2008, and ended on March 31, 2009, Any person may be a qualified employee least 90 days. The 90-day requirement you must figure wages based on the except the following. does not apply in the following calendar year that began on January 1, ● Any relative of the employer described situations. 2008, and ended on December 31,

in sections 152(d)(2)(A) through ● The employee is terminated because 2008. Wages paid after the end of the 152(d)(2)(G). of misconduct as determined under the calendar year may be used only to figure ● A dependent of the employer applicable state unemployment the credit claimed on the following described in section 152(d)(2)(H). compensation law. year’s tax return. ● If the employer is a corporation, any ● The employee becomes disabled Qualified empowerment zone wages individual who bears any of the before the 90th day. However, if the are qualified wages paid or incurred by relationships described in sections disability ends before the 90th day, the an employer for services performed by 152(d)(2)(A) through 152(d)(2)(G), or is a employer must offer to reemploy the an employee while the employee is a dependent, as described in section former employee. qualified empowerment zone employee 152(d)(2)(H), of an individual who owns An employee is not treated as (defined earlier). The maximum wages (or is considered to own under section terminated if the corporate employer is that may be taken into account for each 267(c)) more than 50% in value of the acquired by another corporation under employee is limited to $15,000. The outstanding stock of the corporation. section 381(a) and the employee $15,000 amount for any employee is ● If the employer is an entity other than continues to be employed by the reduced by the amount of wages paid or a corporation, any individual who owns acquiring corporation. Nor is a mere incurred during the calendar year on directly or indirectly more than 50% of change in the form of conducting the behalf of that employee that are used in the capital and profits interest, including trade or business treated as a figuring: constructive ownership, in the entity. termination if the employee continues to ● The work opportunity credit (Form ● If the employer is an estate or trust, be employed in such trade or business 5884) or any individual who is a grantor, and the taxpayer retains a substantial ● The welfare-to-work credit (Form beneficiary, or fiduciary of the estate or interest therein. 8861). trust (or a dependent, as described in section 152(d)(2)(H), of such an Wages Line 1b—Qualified Renewal individual), or any individual who is a Wages are defined in section 51(c) and Community Wages relative, as described in sections generally are wages (excluding tips) Enter the total qualified renewal 152(d)(2)(A) through 152(d)(2)(G), of the subject to the Federal Unemployment community wages paid or incurred grantor, beneficiary, or fiduciary of the Tax Act (FUTA), without regard to the during calendar year 2008. The credit estate or trust. FUTA dollar limitation. The following are must be figured using only the wages

● Any person who owns (or is also treated as wages. that you paid or incurred in the calendar considered to own under section 318) ● Amounts paid or incurred by the year that ended with or within your tax more than 5% of the outstanding or employer as educational assistance year. For example, if your tax year voting stock of the employer, or if not a payments excludable from the began on April 1, 2008, and ended on corporate employer, more than 5% of employee’s gross income under section March 31, 2009, you must figure wages the capital or profits interest in the 127. However, this does not apply if the based on the calendar year that began employer. employee has a relationship to the on January 1, 2008, and ended on ● Any individual employed by the employer described in section 267(b) or December 31, 2008. Wages paid after employer for less than 90 days. For 707(b)(1) (substituting "10 percent" for the end of the calendar year may be exceptions, see Early termination of "50 percent" in those sections) or the used only to figure the credit claimed on employee below. employer and employee are engaged in the following year’s tax return. ● Any individual employed by the trades or businesses under common employer at any private or commercial control (within the meaning of sections golf course, country club, massage 52(a) and (b)). parlor, hot tub facility, suntan facility, ● Amounts paid or incurred by the racetrack or other facility used for employer on behalf of an employee gambling, or any store the principal under age 19 for a youth training business of which is the sale of alcoholic program operated by that employer in beverages for consumption off premises. conjunction with local education officials.

Form 8844 (2008) Page 4

Qualified renewal community wages did not materially participate. Rental You are not required to provide the are qualified wages paid or incurred by an activities are generally considered passive information requested on a form that is employer for services performed by an activities, whether or not you materially subject to the Paperwork Reduction Act employee while the employee is a qualified participate. For details, see Form 8582-CR, unless the form displays a valid OMB renewal community employee (defined Passive Activity Credit Limitations (for control number. Books or records earlier). The maximum wages that may be individuals, trusts, and estates), or Form relating to a form or its instructions must taken into account for each employee is 8810, Corporate Passive Activity Loss and be retained as long as their contents limited to $10,000. The $10,000 amount for Credit Limitations (for corporations). may become material in the any employee is reduced by the amount of administration of any Internal Revenue wages paid or incurred during the calendar Line 7 law. Generally, tax returns and return year on behalf of that employee that are Enter the passive activity credit allowed for information are confidential, as required used in figuring: the 2008 EZRCE credit from Form 8582-CR by section 6103. or Form 8810. See the instructions for the The time needed to complete and file ● The work opportunity credit (Form applicable form for details. this form will vary depending on 5884) or individual circumstances. The estimated

● The welfare-to-work credit (Form 8861). Line 9 burden for individual taxpayers filing this Use only if you amend your 2008 return to form is approved under OMB control Line 2 carry back an unused credit from 2009. number 1545-0074 and is included in

In general, you must reduce your the estimates shown in the instructions deduction for salaries and wages and Line 11 for their individual income tax return. The certain educational and training costs by A cooperative described in section 1381(a) estimated burden for all other taxpayers the line 2 credit amount. You must make must allocate to its patrons the credit in who file this form is shown below. this reduction even if you cannot take the excess of its tax liability limit. Therefore, to Recordkeeping 4 hr., 4 min. full credit this year because of the tax figure the unused amount of the credit Learning about the liability limit. If you capitalized any costs on allocated to patrons, the cooperative must law or the form 2 hr., 22 min. which you figured the credit, reduce the first figure its tax liability. While any excess amount capitalized by the amount of the is allocated to patrons, any credit recapture Preparing and sending credit attributable to these costs. applies as if the cooperative had claimed the form to the IRS 2 hr., 33 min.

Members of a controlled group of the entire credit. If you have comments concerning the corporations and businesses under accuracy of these time estimates or common control are treated as a single suggestions for making this form employer in determining the credit. The Paperwork Reduction Act Notice. We simpler, we would be happy to hear from members share the credit in the same ask for the information on this form to you. See the instructions for the tax proportion that they paid or incurred carry out the Internal Revenue laws of return with which this form is filed. qualifying wages. the . You are required to give us the information. We need it to Line 5 ensure that you are complying with Enter the amount included on line 4 that is these laws and to allow us to figure and from a passive activity. Generally, a passive collect the right amount of tax. activity is a trade or business in which you