How are business loss carryforwards calculated for the temporary credit for business loss carryforwards?
The temporary credit for business loss carryforwards is based on business loss carryforwards created on the 2003 and subsequent franchise tax reports and that were not expired or exhausted on a report due before January 1, 2008. A business loss is any negative amount of earned surplus after apportionment and allocation but before any deductions for solar energy devices, clean coal project, or investment in an enterprise zone. To calculate your business loss carryforwards you start with any negative amount of apportioned and allocated earned surplus on the 2003 franchise tax report (item 23). To this amount you would add any amounts of negative apportioned and allocated earned surplus from the 2004-2007 franchise tax reports and subtract any amounts of positive apportioned and allocated earned surplus from the 2004-2007 franchise tax reports. You must subtract any amounts of positive apportioned and allocated earned surplus regardless of whether you paid tax on taxable capital or owed n
