What Texas Form 05-179 Is For
Texas Form 05-179 is used to notify the Texas Comptroller of any sale, assignment, or transfer of an existing historic structure credit from one taxpayer to another. The form covers credits generated by authorized restoration of qualified historic buildings in Texas.
A credit is not created, increased, or approved by this form. For the Comptroller to update records and issue updated Tax Credit Certificates reflecting the new ownership, it merely documents the transfer.
When the original credit holder is unable to fully apply the credit against Texas Franchise Tax or insurance premium tax liabilities, taxpayers usually utilize this form. Credits can be more efficiently used by allocating them to taxable entities through transfers.
When You’d Use Texas Form 05-179
New York Form CT-222 (2011) is used when a corporation needs to claim or report a credit on New York State tax returns that applies to the 2011 tax year. It is typically filed with corporate tax returns when the taxpayer qualifies for the specific credit covered by the form and needs to calculate or support the amount claimed.
This form is also used when a taxpayer is filing an amended return for the 2011 tax year and must correct a prior credit claim or add a missed credit. When corporate tax liability shifts as a result of revised total revenue estimates, revised taxable income computations, or other modifications that impact the application of credits for that fiscal year, it might be necessary.
Key Rules or Details for 2015
When a historic structure credit is sold, assigned, or given away, Texas Form 05-179 is required. The notice must be sent to the Texas Comptroller within 30 days of the transfer date. Businesses that wish to claim the credit must keep the Tax Credit Certificate and other cost records for their tax returns, and both parties must sign the form.
The timeline for credits linked to earlier tax years, like 2011, stays the same and doesn't start over when they are transferred. The Texas Tax Code only lets you use the Texas Franchise Tax Report or other tax reports during the allowed reporting periods. Because of this, buyers should confirm remaining availability before relying on the credit.
Step-by-Step (High Level)
Step 1: Finalize the Transfer Agreement
The parties must agree on the allocation percentages, the terms of the assignment, or the sale price before completing the form. To finish the transfer, the seller needs to present a legitimate certificate attesting to their remaining credit.
Step 2: Assemble Required Documentation
Before filing, gather the necessary supporting documentation. These typically include the most recent Tax Credit Certificate, records of cost certification, and documentation related to the authorized qualified rehabilitation plan.
Step 3: Complete Form 05-179 Accurately
All sections must be filled out accurately by both parties. Taxpayer ID numbers, transaction dates, credit transfer amounts, and any outstanding balances are all included in this.
Step 4: Submit the Form Within 30 Days
Within the allotted time, the completed form and any necessary attachments must be mailed to the Comptroller. Delays in preparing tax returns are minimized by submitting them in a timely manner.
Step 5: Wait for Updated Certificates
The Comptroller issues updated certificates that reflect the updated ownership and remaining balances following review. Peak filing times may result in longer processing times.
Step 6: Claim the Credit on Tax Reports
Only after obtaining the updated certificate can the buyer claim the credit. When submitting the relevant franchise tax or insurance premium tax reports, the certificate needs to be attached.
Common Mistakes and How to Avoid Them
- Missing the 30-day filing deadline: To ensure that the transfer is recognized in time for tax filings, submit the form right away after closing.
- Submitting forms without signatures: To avoid automatic rejection, obtain signatures from both the credit owner and the recipient on the same form before submitting it.
- Attaching an outdated certificate: Include the most recent certificate showing the current credit balance, so processing is not stalled.
- Inaccurate credit calculations: To lower the risk of amended filings, reconcile the transferred amount and retained balance to make sure they match the total indicated on the certificate.
- Misapplying allocation rules for insurance taxpayers: Confirm insurance taxpayer restrictions and avoid claiming allocated credits that cannot be used, even when ownership interests exist.
What Happens After You File
A historic structure credit must be sold, assigned, or allocated using Texas Form 05-179. The Texas Comptroller must receive the notice within thirty days of the transfer date. Taxable entities claiming the credit must retain the Tax Credit Certificate and associated cost certification records to prepare their tax returns. Both parties must sign the form.
The timeline for credits associated with previous tax years, such as 2011, is set and does not restart following a transfer. Because the Texas Tax Code limits its use to the allowed reporting periods indicated on the Texas Franchise Tax Report or other tax reports, buyers should confirm remaining availability before depending on the credit.
FAQs
Who is required to file Form 05-179?
The form must be filed by any taxpayer who sells, assigns, or allocates a Texas historic structure credit. Both parties' signatures must be on the submission.
Can only part of a credit be transferred?
According to Texas law, partial transfers are permitted. After processing is finished, each owner's remaining balances will be reflected in revised certificates.
Does Form 05-179 affect income tax filings?
Only franchise taxes and insurance premium taxes should be reported using this form. State and federal income tax returns are exempt from it.
Is there a limit on how many times a credit can be sold?
No, Texas law places no limit on the number of sales or assignments that can occur during the credit’s usable life. Each transfer still requires a timely submission of Form 05-179.
Does an extension apply to this form?
No, an Extension of Time to file applies to tax returns and tax reports. It does not extend the 30-day submission requirement for Form 05-179.
