When must the credit carryover for the temporary credit for business loss carryforwards be reduced for use in subsequent years?
There is no reduction to the credit carryover when no franchise tax is due because total revenue is $300,000 or less. However, a credit must be used to the extent that there is any positive amount of tax due, even if the calculated tax due is less than $1,000. For example, if the tax calculated is $750 the tax is not owed because the calculated tax is less than $1000 but the amount of the credit carryover to the subsequent year would be reduced by $750. See Rule 3.594(g).
