Schedule 1299-D: Income Tax Credits (for corporations and fiduciaries) (2024)
Illinois · Illinois DOR · Used for tax years 2024
Illinois Schedule 1299-D reports income tax credits for corporations and fiduciaries and calculates the amount that may be claimed for the current year. It includes credits earned or received during the year and credits available to carry into the year, and attaches to Form IL-11
Who files this form
Schedule 1299-D is the income tax credit schedule for corporations and fiduciaries. Use it to report credits and calculate the amount you may claim, and attach it to Form IL-1120, IL-1041, or IL-990-T.
The 2024 schedule is for tax years ending on or after December 31, 2024.
What you'll need
- Your Form IL-1120, IL-1041, or IL-990-T, including the name, federal employer identification number (FEIN), and income tax amount shown on the return.
- Schedule 1299-I, Income Tax Credits Information and Worksheets, and the Schedule 1299-D Instructions. The form directs you to these for help completing the schedule.
- Information about credits available to carry into this tax year and credits earned or received during the current year.
- Credit details for Step 3, including expiration dates, credit codes, dates earned, and applicable unitary member FEINs and certificate numbers.
- Schedule K-1-P information if you received a distributive share credit.
- Schedule CR information if you file Form IL-1041 and claim a Credit for Income Tax Paid to Another State.
How to file
Attach Schedule 1299-D to your Form IL-1120, IL-1041, or IL-990-T. The supplied form does not give a mailing address or e-filing directions.
- Enter your name as shown on your return and your FEIN.
- Complete Step 1 only if you earned the Research and Development credit during the current tax year.
- Complete Step 3 before Step 2. List credits earned or received during the current tax year, including credits you are not using.
- Complete Step 2 to calculate the credit you may claim. Transfer Line 10 to Form IL-1120, Step 7, Line 48; Form IL-1041, Step 6, Line 46; or Form IL-990-T, Step 5, Line 22.
Common mistakes
- Leaving out required information. The form warns that failure to provide information could result in a penalty.
- Not rounding amounts. Round all figures to whole dollars.
- Completing the steps out of order. Complete Step 3 before Step 2.
- Putting older credits in Step 3 or omitting unused current credits. Step 3 is only for credits earned or received in the current tax year, even if they are not being used.
- Listing the same credit type on separate lines unnecessarily. Combine credits of the same type unless they were earned by different unitary group members or have different certificate numbers.
- Running out of lines without adding a schedule. Attach a separate schedule in the same format with all required information. Complete Step 3, Line 35, Column I only on Schedule 1299-D.
Questions people ask
How much credit can I claim this year?
Step 2, Line 10 is the smaller of Line 6, your total available credits, or Line 9, your income tax after the Line 8 adjustment. If Line 9 is zero or negative, enter zero there.
Does the credit for tax paid to another state affect this calculation?
For Form IL-1041 filers, Step 2, Line 8 uses the Credit for Income Tax Paid to Another State from Schedule CR, Step 5, Line 59. All other filers enter zero on Line 8.
How is the Research and Development credit calculated?
In Step 1, enter the amounts from Schedule 1299-I, Line 6 of the Research and Development Worksheet. Subtract base-period average expenses from this year's expenses, entering zero if negative. Multiply the result by 6.5% and report it in Step 3, Column F with credit code 5340.
Where can I work out my credit carryforward for next year?
The form says you may use the worksheet in the Schedule 1299-D Instructions to determine your credit carryforward for the next tax year.