4 TLS, have you I.R.S. SPECIFICATIONS TO BE REMOVED BEFORE PRINTING transmitted all R Action Date Signature text files for this INSTRUCTIONS TO PRINTERS FORM 8844, PAGE 1 of 4 cycle update? 1 MARGINS: TOP 13 mm ( ⁄2 "), CENTER SIDES. PRINTS: HEAD TO HEAD O.K. to print PAPER: WHITE WRITING, SUB. 20. INK: BLACK 1 FLAT SIZE: 432mm (17") x 279mm (11") FOLD TO: 216 mm (8 ⁄2 ") x 279 mm (11") Date PERFORATE: ON FOLD Revised proofs DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT requested

Empowerment Zone and Renewal OMB No. 1545-1444 Form 8844 Community Employment Credit 2005 Department of the Treasury Attach to your tax return. Attachment Internal Revenue Service Sequence No. 99 Name(s) shown on return Identifying number

Part I Current Year Credit 1 Enter the total qualified wages paid or incurred during calendar year 2005 only (see instructions) a Qualified wages $ X 20% (.20) 1a b Qualified renewal community wages $ X 15% (.15) 1b 2 Add lines 1a and 1b. You must subtract this amount from your deduction for salaries and wages 2

3 Form 8844 If you are a— Then enter the total of the current year credits from— credits from a Shareholder Schedule K-1 (Form 1120S), box 13, code F, G, or M pass-through b Partner Schedule K-1 (Form 1065), box 15, code F, G, or M entities: 3 c Beneficiary Schedule K-1 (Form 1041), box 13, code K ͖ d Patron Written statement from cooperative 4 Add lines 2 and 3 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 2005 (see instructions) 7 8 Carryforward of empowerment zone and renewal community employment credit to 2005 8 9 Carryback of empowerment zone and renewal community employment credit from 2006 (see instructions) 9 10 Current year credit. Add lines 6 through 9. (S corporations, partnerships, estates, trusts, and cooperatives, see instructions.) 10 Part II Allowable Credit 11 Regular tax before credits: ● Individuals. Enter the amount from Form 1040, line 44 ● Corporations. Enter the amount from Form 1120, Schedule J, line 3; Form 1120-A, Part I, line 1; or the applicable line of your return 11 ● Estates and trusts. Enter the sum of the amounts from Form 1041, Schedule G, lines 1a and ͖ 1b, or the amount from the applicable line of your return 12 Alternative minimum tax: ● Individuals. Enter the amount from Form 6251, line 35 ● Corporations. Enter the amount from Form 4626, line 14 ͖ 12 ● Estates and trusts. Enter the amount from Form 1041, Schedule I, line 56 13 Add lines 11 and 12 13 14a Foreign tax credit 14a b Credits from Form 1040, lines 48 through 54 14b c Possessions tax credit (Form 5735, line 17 or 27) 14c d Nonconventional source fuel credit (Form 8907, line 23) 14d e Other specified credits (see instructions) 14e f Add lines 14a through 14e 14f 15 Net income tax. Subtract line 14f from line 13. If zero, skip lines 16 through 22 and enter -0- on line 23 15 16 Net regular tax. Subtract line 14f from line 11. If zero or less, enter -0- 16 17 Tentative minimum tax (see instructions) 17 18 Enter 25% (.25) of the excess, if any, of line 16 over $25,000 (see instructions) 18 19 Multiply line 17 by 75% (.75) 19 20 Enter the greater of line 18 or line 19 20 21 Subtract line 20 from line 15. If zero or less, enter -0- 21 22 General business credit (see instructions) 22 23 Subtract line 22 from line 21 23 24 Credit allowed for the current year. Enter the smaller of line 10 or line 23 here and on Form 1040, line 55; Form 1120, Schedule J, line 6d; Form 1120-A, Part I, line 2; Form 1041, Schedule G, line 2c; or the applicable line of your return. If line 23 is smaller than line 10, see instructions 24 For Paperwork Reduction Act Notice, see page 4. Cat. No. 16145S Form 8844 (2005) 4 I.R.S. SPECIFICATIONS TO BE REMOVED BEFORE PRINTING INSTRUCTIONS TO PRINTERS FORM 8844, PAGE 2 of 4 1 MARGINS: TOP 13 mm ( ⁄2 "), CENTER SIDES. PRINTS: HEAD TO HEAD PAPER: WHITE WRITING, SUB. 20. INK: BLACK 1 FLAT SIZE: 432mm (17") x 279mm (11") FOLD TO: 216 mm (8 ⁄2 ") x 279 mm (11") PERFORATE: ON FOLD DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8844 (2005) Page 2 General Instructions ● Philadelphia, PA/Camden, NJ ● Has his or her principal residence ● Columbia/Sumter, SC within that empowerment zone while Section references are to the Internal ● performing those services (employees Revenue Code. Knoxville, TN ● who work in the Washington, DC El Paso, TX empowerment zone may live anywhere Purpose of Form ● San Antonio, TX in the District of Columbia). Use Form 8844 to claim the ● Norfolk/Portsmouth, VA See Qualified Employees on page 3 empowerment zone and renewal ● Huntington, WV/Ironton, OH for a list of persons who are not community employment (EZRCE) credit. Washington, DC. Under section 1400, qualified employees. For tax years that include December 31, parts of Washington, DC, are treated as 2005, the credit is: an empowerment zone. For details, use Renewal Communities ● 20% of the employer’s qualified the RC/EZ/EC Address Locator at Parts of the following areas are renewal wages (up to $15,000) paid or incurred www.hud.gov/crlocator or see Notice during calendar year 2005 on behalf of communities. You can find out if your 98-57, on page 9 of Internal Revenue business or an employee’s residence is qualified empowerment zone employees Bulletin 1998-47 at www.irs.gov/pub/irs- plus located within a renewal community by irbs/irb98-47.pdf. using the RC/EZ/EC Address Locator at ● 15% of the employer’s qualified Rural areas. Parts of the following rural www.hud.gov/crlocator or by calling wages (up to $10,000) paid or incurred areas are empowerment zones. You can 1-800-998-9999. during calendar year 2005 on behalf of find out if your business or an ● Greene-Sumter County, AL qualified renewal community employees. employee’s residence is located within a ● Mobile County, AL Although the credit is a component of rural empowerment zone by using the ● the general business credit, a special tax RC/EZ/EC Address Locator at Southern Alabama liability limit applies. The allowable www.hud.gov/crlocator or by calling ● Los Angeles, CA credit, therefore, is figured on Form 1-800-998-9999. ● Orange Cove, CA 8844 and is not carried to Form 3800, ● Desert Communities, CA (part of ● Parlier, CA General Business Credit. Riverside County) ● San Diego, CA ● Southwest Georgia United, GA (part of ● , CA Empowerment Zones Crisp County and all of Dooly County) ● , GA Urban areas. Parts of the following ● Southernmost Delta, IL (parts ● , IL urban areas are empowerment zones. of Alexander and Johnson Counties and ● You can find out if your business or an all of Pulaski County) Eastern Kentucky ● employee’s residence is located within ● Kentucky Highlands, KY (part of Central Louisiana an urban empowerment zone by using Wayne County and all of Clinton and ● New Orleans, LA the RC/EZ/EC Address Locator at Jackson Counties) ● Northern Louisiana www.hud.gov/crlocator or by calling ● Aroostook County, ME (part of ● 1-800-998-9999. Ouachita Parish, LA Aroostook County) ● ● Pulaski County, AR Lawrence, MA ● Mid-Delta, MS (parts of Bolivar, ● ● Lowell, MA Tucson, AZ Holmes, Humphreys, Leflore, Sunflower, ● , MI ● Fresno, CA and Washington Counties) ● Flint, MI ● Los Angeles, CA (city and county) ● Griggs-Steele, ND (part of Griggs ● ● Santa Ana, CA County and all of Steele County) West Central Mississippi ● ● New Haven, CT ● Oglala Sioux Tribe, SD (parts of Turtle Mountain Band of Chippewa, ND ● ● Jacksonville, FL Jackson and Bennett Counties and all of Camden, NJ Shannon County) ● ● Miami/Dade County, FL Newark, NJ ● Middle Rio Grande FUTURO ● ● Chicago, IL Buffalo-Lackawanna, NY Communities, TX (parts of Dimmit, ● ● Jamestown, NY Gary/Hammond/East Chicago, IN Maverick, Uvalde, and Zavala Counties) ● ● Niagara Falls, NY Boston, MA ● Rio Grande Valley, TX (parts of ● Rochester, NY ● Baltimore, MD Cameron, Hidalgo, Starr, and Willacy ● ● Detroit, MI Counties) Schenectady, NY ● ● Minneapolis, MN Qualified empowerment zone Hamilton, OH ● ● St. Louis, MO/East St. Louis, IL employee. A qualified empowerment Youngstown, OH zone employee is any employee ● ● Cumberland County, NJ Philadelphia, PA (full-time or part-time) of the employer ● ● New York, NY Charleston, SC who: ● ● Syracuse, NY ● Chattanooga, TN Performs substantially all of the ● ● Yonkers, NY services for that employer within an Memphis, TN ● ● Cincinnati, OH empowerment zone in the employer’s Corpus Christi, TX ● ● Cleveland, OH trade or business and El Paso County, TX ● ● Columbus, OH Burlington, VT ● ● Oklahoma City, OK Tacoma, WA ● Yakima, WA ● , WI 4 I.R.S. SPECIFICATIONS TO BE REMOVED BEFORE PRINTING INSTRUCTIONS TO PRINTERS FORM 8844, PAGE 3 of 4 1 MARGINS: TOP 13 mm ( ⁄2 "), CENTER SIDES. PRINTS: HEAD TO HEAD PAPER: WHITE WRITING, SUB. 20. INK: BLACK 1 FLAT SIZE: 432mm (17") x 279mm (11") FOLD TO: 216 mm (8 ⁄2 ") x 279 mm (11") PERFORATE: ON FOLD DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8844 (2005) 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 trade or business and Line 1a—Qualified Empowerment 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. Note. Certain farming activities calendar year 2005. 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 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 Qualified Employees example, if your tax year began on April zone employee unless employed for at 1, 2005, and ended on March 31, 2006, 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. 2005, and ended on December 31, in sections 152(d)(2)(A) through ● The employee is terminated because 2005. 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 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 2005. 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, 2005, and ended on corporate employer, more than 5% of employee’s gross income under section March 31, 2006, 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, 2005, and ended on ● Any individual employed by the employer described in section 267(b) or December 31, 2005. 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. 4 I.R.S. SPECIFICATIONS TO BE REMOVED BEFORE PRINTING INSTRUCTIONS TO PRINTERS FORM 8844, PAGE 4 of 4 1 MARGINS: TOP 13 mm ( ⁄2 "), CENTER SIDES. PRINTS: HEAD TO HEAD PAPER: WHITE WRITING, SUB. 20. INK: BLACK 1 FLAT SIZE: 432mm (17") x 279mm (11") FOLD TO: 216 mm (8 ⁄2 ") x 279 mm (11") PERFORATE: ON FOLD DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8844 (2005) Page 4

Qualified renewal community wages S corporations and partnerships. the amount shown on line 19 of Form are qualified wages paid or incurred by Allocate the credit among the 3800. Otherwise, enter on line 22 the an employer for services performed by shareholders or partners. Attach Form credit from the last line of the credit an employee while the employee is a 8844 to the return and show the credit form (for example, line 17 of Form 8586, qualified renewal community employee for each shareholder or partner on Low-Income Housing Credit). (defined earlier). The maximum wages Schedule K-1. Electing large that may be taken into account for each partnerships include this credit in Line 24 employee is limited to $10,000. The “general credits.” If you cannot use all of the credit $10,000 amount for any employee is because of the tax liability limit (line 23 reduced by the amount of wages paid or Estates and trusts. Allocate the credit is smaller than line 10), carry the unused incurred during the calendar year on between the estate or trust and the credit back 1 year then forward up to 20 behalf of that employee that are used in beneficiaries in proportion to the income years. To carry back an unused credit, figuring: allocable to each. On the dotted line to file an amended income tax return (Form the left of the amount on line 10, the 1040X, 1120X, or other amended return) ● The work opportunity credit (Form estate or trust should enter its part of the for the prior tax year or an application 5884) or total credit. Label it “1041 Portion” and for tentative refund (Form 1045, ● The welfare-to-work credit (Form 8861). use this amount in Part II to figure the Application for Tentative Refund, or Line 2 credit to claim on Form 1041, U.S. Form 1139, Corporation Application for Income Tax Return for Estates and Trusts. Tentative Refund). If you file an In general, you must reduce your application for tentative refund, it Cooperatives. Most tax-exempt deduction for salaries and wages and generally must be filed by the end of the organizations cannot take the credit, but certain educational and training costs by tax year following the tax year in which a cooperative described in section the line 2 credit amount. You must make the credit arose. this reduction even if you cannot take 1381(a) can take the credit to the extent the full credit this year because of the of its tax liability. Allocate the credit in excess of the tax liability limit to the tax liability limit. If you capitalized any Paperwork Reduction Act Notice. We patrons of the cooperative. costs on which you figured the credit, ask for the information on this form to reduce the amount capitalized by the Line 14e carry out the Internal Revenue laws of amount of the credit attributable to the . You are required to these costs. Include on line 14e any amounts claimed give us the information. We need it to Members of a controlled group of on: ensure that you are complying with corporations and businesses under ● Form 8834, Qualified Electric Vehicle these laws and to allow us to figure and common control are treated as a single Credit, line 20, collect the right amount of tax. employer in determining the credit. The ● Form 8910, Alternative Motor Vehicle You are not required to provide the members share the credit in the same Credit, line 18, and information requested on a form that is proportion that they paid or incurred ● Form 8911, Alternative Fuel Vehicle subject to the Paperwork Reduction Act qualifying wages. Refueling Property Credit, line 19. unless the form displays a valid OMB Line 5 Line 17 control number. Books or records relating to a form or its instructions must Enter the amount included on line 4 that Although you may not owe alternative be retained as long as their contents is from a passive activity. Generally, a minimum tax (AMT), you generally must may become material in the passive activity is a trade or business in still compute the tentative minimum tax administration of any Internal Revenue which you did not materially participate. (TMT) to figure your credit. For a small law. Generally, tax returns and return Rental activities are generally considered corporation exempt from the AMT under information are confidential, as required passive activities, whether or not you section 55(e), enter zero. Otherwise, by section 6103. materially participate. For details, see complete and attach the applicable AMT Form 8582-CR, Passive Activity Credit The time needed to complete and file form or schedule. Enter on line 17 the Limitations (for individuals, trusts, and this form will vary depending on TMT from the line shown below. estates), or Form 8810, Corporate individual circumstances. The estimated ● Passive Activity Loss and Credit Individuals: Form 6251, line 33. burden for individual taxpayers filing this Limitations (for corporations). ● Corporations: Form 4626, line 12. form is approved under OMB control number 1545-0074 and is included in ● Estates and trusts: Form 1041, the estimates shown in the instructions Line 7 Schedule I, line 54. for their individual income tax return. The Enter the passive activity credit allowed Line 18 estimated burden for all other taxpayers for the 2005 EZRCE credit from Form who file this form is shown below. 8582-CR or Form 8810. See the See section 38(c)(5) for special rules that instructions for the applicable form for apply to married individuals filing Recordkeeping 8 hr., 22 min. details. separate returns, controlled groups, Learning about the regulated investment companies, real law or the form 2 hr., 22 min. Line 9 estate investment trusts, and estates and Preparing and sending Use only if you amend your 2005 return trusts. the form to the IRS 2 hr., 37 min. to carry back an unused credit from 2006. Line 22 If you have comments concerning the Line 10 Enter the amount of all other allowed accuracy of these time estimates or credits that make up the general suggestions for making this form If line 10 is zero, skip Part II. business credit (other than a credit from simpler, we would be happy to hear from Form 6478 or Section B of Form 8835). If you. See the instructions for the tax Pass-through entities allocate the return with which this form is filed. credit as follows. you are filing Form 3800, enter on line 22

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