A credit can be taken for part of the qualified wages and health insurance costs of employees who are enrolled members of an Indian tribe, who perform substantially all of their services on an Indian reservation, while living on or near the reservation. Each tribe determines who qualifies for enrollment and what documentation is needed to certify enrollment. The credit is calculated as 20% of the increase in qualified wages and health insurance costs as compared to the year 1993. The amount of qualified wages and health insurance costs is limited to $20,000 per employee each year. But an employee is not qualified if total wages and health insurance costs are over $35,000. For 1993, the limit for an employee to qualify is $30,000.
Low Sulfur Diesel Fuel Production Credit – Form 8896
This is a credit of $0.05 per gallon for low sulfur diesel fuel (15 parts per million or less) produced by a small business refiner during the year. A small business refiner is a refiner of crude oil with an average daily domestic refinery run or average retained production of no more than 205,000 barrels. The credit is for expenses paid or incurred after 2002. If you have a credit from before 2004, you would not file Form 8896, and would include the credit on Form 3800.
Low Income Housing Credit - Form 8586
This is a credit for qualified low-income housing buildings placed in service after 1986. The credit is taken over a 10-year period for residential rental buildings in low-income housing projects that are certified by the housing credit agency. You will be allocated a credit for the present value of 10 annual credit amounts, equal to 70% of the building’s qualified basis, unless the building receives a federal subsidy, in which case the credit will be at 30% of the qualified basis. For each building, you must have a Form 8609, Low-Income Housing Credit Allocation Certification. If you are the building owner, you must file Schedule A of Form 8609, Annual Statement, each year of the 15-year compliance period. If you are a partner, shareholder or beneficiary of a pass-through entity (partnership, S-corporation, trust, or estate), you only need to file Form 8586 to claim the credit, based on the information provided on your Schedule K-1.