If a company’s guaranty association credits are greater than its tax liability, what happens to the excess?
Any portion of the maximum Class B assessment credits that cannot be used in any year can be carried forward to future years. Depending on when the tax credits were issued, up to 10 or 20 percent of the credit can be used each year. Any remaining balance will be carried forward, which will extend the life of the credits.
Related Questions
- What happens if the benefits promised in my policy are greater than the coverage limits provided by the guaranty association?
- If a company’s guaranty association credits are greater than its tax liability, what happens to the excess?
- When can the assigned credits be used to offset a tax liability of the assignee?
