D-403TC: Partnership Tax Credit Summary (2024)
North Carolina · North Carolina DOR · Used for tax years 2024
Form D-403TC summarizes a partnership’s North Carolina tax credits taken in 2024, including credits subject to and not subject to the 50% of tax limit. It also reports certain qualified rehabilitation expenditures and expenses if 2024 is the first year the credit is taken.
Who files this form
A partnership must file Form D-403TC with Form D-403, Partnership Income Tax Return, if it claims a tax credit on Form D-403, Part 4, line 19 or 26.
What you'll need
- Form D-403: File Form D-403TC with the partnership income tax return. You also need the North Carolina income tax amount from Form D-403, Part 1, line 11.
- Credit schedules: Attach a schedule for each credit reported in Part 1.
- Form NC-Rehab, if applicable: Use Part 4, lines 23 and 26 for the Article 3L historic structure credits.
- Form NC-478, if applicable: Use Part 3 for the total credits subject to the 50% limit taken in 2024.
Form D-403TC also asks for the first 10 characters of the partnership’s legal name and its federal employer ID number.
How to file
File Form D-403TC with Form D-403. The supplied form does not give a mailing address or e-file directions.
- Part 1: Enter the applicable credits on lines 1 through 7 and attach a schedule for each credit. Add those lines on line 8. Enter the tax from Form D-403, Part 1, line 11 on line 9, then enter the smaller of lines 8 and 9 on line 10.
- Part 2: Enter the total credits subject to the 50% limit taken in 2024 from Form NC-478, Part 3 on line 11. Line 12 is reserved.
- Part 3: Add lines 10 through 12 on line 13. Enter that amount on the applicable line or lines of Form D-403, Part 4.
- Part 4: Complete lines 14 and 15 for qualified rehabilitation expenditures or rehabilitation expenses only if 2024 is the first year the credit is taken.
The form points to Form D-403A, Instructions for Partnership Income Tax Return, for additional details.
Common mistakes
- Not attaching Form D-403TC: The form warns that failure to attach it may result in disallowance of the tax credit.
- Leaving out credit schedules: Part 1 requires an attached schedule for each credit.
- Including the wrong carryover credits on line 7: This line is for taxed partnerships only. Do not include credits claimed on Form NC-478 or Form NC-Rehab.
- Completing lines 14 and 15 in the wrong year: Enter rehabilitation expenditures or expenses only if tax year 2024 is the first year the credit is taken.
Questions people ask
Are all credits on this form subject to the 50% tax limit?
No. Part 1 lists credits not subject to the 50% tax limit. Part 2 reports credits subject to that limit, using the total from Form NC-478, Part 3.
Should I enter the full credit or an installment for historic rehabilitation credits?
Follow the instruction for each line. Lines 1, 2 and 4 ask for the installment amount. Line 3 asks for the total tax credit. Lines 5 and 6 use amounts from Form NC-Rehab, Part 4, lines 23 and 26.
Can I report credits carried over from earlier years?
Line 7 is for tax credits carried over from previous years by taxed partnerships only. It excludes credits claimed on Form NC-478 or Form NC-Rehab.
When do I report rehabilitation expenditures or expenses in Part 4?
Report them on lines 14 and 15 only if tax year 2024 is the first year the tax credit is taken.