Form 8847

Credit for Contributions to Selected Community Development Corporations

PURPOSE OF THE FORM :

Use Form 8847 to claim the credit for Qualified contributions made to selected community development corporations (CDCs).
The credit id figured over a 10year credit period beginning with the tax year the qualified CDC contribution was made. The credit for each tax year in the credit period is 5% of the qualified CDC contribution . This credit is a part of general business credit.

QUALIFIED CDC CONTRIBUTION :
A Qualified CDC contribution is any transfer of cash to a selected CDC before June 30, 1999 that is available for use by the CDC for at least 10 years and was designated by the CDC as a qualified contribution for purposes of the credit.

Line 1:
Enter the total qualified community development corporation (CDC) contributions from PART I of the attached schedule A , Form 8847.

Line 2:
The program multiplies line 1 by 5% and enters the result on this line.

Line 3:
The program transfers the amount from schedule K-1PS and schedule K-1ET line named credit for contribution to selected community development corporations.

Line 4:
The program adds line 2 and line 3 and enters the result here and also reports this amount on FORM 3800.