Illinois Recapture of Investment Tax Credits

Recapture of Investment Tax Credits
Schedule 4255, Recapture of Investment Tax CreditsUse your mouse or Tab key to move through the fields. Use your mouse or space bar to enable check boxes.

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Illinois Department of Revenue

Schedule 4255

Attach to Form IL-1040, IL-1120, IL-1065,
IL-1120-ST, IL-1041, or IL-990-T.

Recapture of Investment Tax Credits
IL Attachment No. 4

Enter your name as shown on your return.

Enter your Social Security number (SSN) or federal employer identification number (FEIN).

The property you are reporting on Steps 1 through 5 of this schedule was placed in service during the tax year ending:

Month Year

Step 1: Figure your Enterprise Zone or River Edge Redevelopment Zone

Investment Credit recapture
A

Date property placed in
Date property
service in Illinois
became disqualified
Month Year
Month Year

1 a

b
c
d
e
f

Description of
qualified property

Reason for
disqualification

Original basis

Name of enterprise
zone or river edge
redevelopment zone

Credit
rate

Disqualified
credit amount
(Col. E x Col. G)

2 Add Column H, Lines 1a through 1f. Enter the Column H total on Line 13, Column A. 2

Step 2: Figure your High Impact Business Investment Credit recapture
A

Date property placed in
Date property
service in Illinois
became disqualified
Month Year
Month Year

3 a
b
c
d
e
f

Description of
qualified property

Reason for
disqualification

Original basis

Name of the
foreign trade zone/
sub-zone

Credit
rate

Disqualified
credit amount
(Col. E x Col. G)

4 Add Column H, Lines 3a through 3f. Enter the Column H total on Line 13, Column B.

.005
.005
.005
.005
.005
.005

Step 3: Figure your REV Illinois Investment Credit recapture
A

Date property placed in
Date property
service in Illinois
became disqualified
Month Year
Month Year

5 a
b
c
d
e
f

Description of
qualified property

Reason for
disqualification

Original basis

Location of REV
Illinois Project

Credit
rate

Disqualified
credit amount
(Col. E x Col. G)

.005
.005
.005
.005
.005
.005

6
Add Column H, Lines 5a through 5f. Enter the Column H total on Line 13, Column C. 6

Schedule 4255 (R-12/24)

This form is authorized as outlined by the Illinois Income Tax Act. Disclosure of this
information is REQUIRED. Failure to provide information could result in a penalty.

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Step 4: Figure your Replacement Tax Investment Credit recapture
A

Date property placed
Date property
in service in Illinois became disqualified
Month Year
Month Year

Description of
qualified property

Reason for
disqualification

Original basis

Credit
rate

Disqualified
credit amount
(Col. E x Col. F)

7 a
b
c
d
e
f
8 Add Column G, Lines 7a through 7f. Enter the Column G total on Line 13, Column D.

Step 5: Figure your MICRO Investment Credit recapture
A

Date property placed in
Date property
service in Illinois
became disqualified
Month Year
Month Year

Description of
qualified property

Reason for
disqualification

Original basis

Location of MICRO
Illinois Project

Credit
rate

Disqualified
credit amount
(Col. E x Col. G)

9 a
b
c
d
e
f

.005
.005
.005
.005
.005
.005

10 Add Column H, Lines 9a through 9f. Enter the Column H total on Line 13, Column E. 10

Step 6: Figure your total Enterprise Zone or River Edge Redevelopment Zone
Investment Credit, High I mpact Business Investment Credit, REV Illinois
Investment Credit, Replacement Tax Investment Credit, and MICRO
Investment Credit recapture amount
A
Enterprise Zone
or River Edge
Redevelopment
Zone Investment
Credit recapture

B
High Impact
Business
Investment Credit
recapture

C
REV Illinois
Investment
Credit
recapture

D
Replacement Tax
Investment
Credit
recapture

E
MICRO
Investment
Credit
recapture

11 Enter the total basis of all your property.
See instructions.
11
12 Enter the amount of your original credit.
See instructions.
12
13 Enter the total disqualified credit
amounts from Steps 1, 2, 3, 4, and 5.
14 Subtract Line 13 from Line 12. This is
your adjusted credit.

15 Enter your original tax amount.

13
14

See instructions.

16 Enter the lesser of Line 12 or Line 15.
This is the amount of credit you
previously used.

17 Subtract Line 14 from Line 16. If the
result is negative, enter zero.

Schedule 4255 (R-12/24)

Printed by the authority of the state of Illinois - electronic only - one copy.

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Step 6 continued:

A
Enterprise Zone
or River Edge
Redevelopment
Zone Investment
Credit recapture

B
High Impact
Business
Investment Credit
recapture

C
REV Illinois
Investment
Credit
recapture

D
Replacement Tax
Investment
Credit
recapture

E
MICRO
Investment
Credit
recapture

18 Enter the amount of recapture from

any other Schedule 4255 filed this year.
See instructions.
18
19 Distributive share of recapture from
partnerships and S corporations from
Schedule(s) K-1-P.
19
20 Add Lines 17, 18, and 19.

21 Partnerships and S corporations -

Enter the amount from Line 20 that you
passed through to your partners
or shareholders. See instructions.
21

22 Total Enterprise Zone Investment
Credit or River Edge Redevelopment
Zone Investment Credit, High Impact
Business Investment Credit,
REV Illinois Investment Credit,
Replacement Tax Investment
Credit, and MICRO Investment
Credit recapture. Subtract Line 21 from
Line 20. See instructions.
22
If you attach multiple Schedules 4255, complete Step 7 only on the last succeeding Schedule 4255 you complete. If you do not have
any additional income tax credit recapture amounts, do not complete Step 7.

Step 7: Figure your additional income tax credit recapture amount
23 Enter the amount of Angel Investment Credit claimed for any prior year. See instructions.

24 Enter the amount of EDGE Credit claimed for any prior year. See instructions.

25 Enter the amount of New Construction EDGE Credit claimed for any prior year. See instructions.

26 Enter the amount of Historic Preservation Credit claimed for any prior year. See instructions.

27 Enter the amount of New Markets Development Credit claimed for any prior year. See instructions.

28 Enter the amount of REV Illinois Credit claimed for any prior year. See instructions.

29 Enter the amount of REV Construction Jobs Credit claimed for any prior year. See instructions.

30 Enter the amount of MICRO Illinois Credit claimed for any prior year. See instructions.

31 Enter the amount of MICRO Construction Jobs Credit claimed for any prior year. See instructions.

32 Enter the distributive share of additional income tax credit recapture from partnerships and S corporations
from Schedule(s) K-1-P.

33 Total additional income tax credit recapture. Add Lines 23 through 32. See instructions.

Schedule 4255 (R-12/24)

32
33

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Extracted from PDF file 2024-illinois-schedule-4255.pdf, last modified June 2024

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More about the Illinois Schedule 4255 Corporate Income Tax Tax Credit TY 2024

We last updated the Recapture of Investment Tax Credits in January 2025, so this is the latest version of Schedule 4255, fully updated for tax year 2024. You can download or print current or past-year PDFs of Schedule 4255 directly from TaxFormFinder. You can print other Illinois tax forms here.

Other Illinois Corporate Income Tax Forms:

TaxFormFinder has an additional 75 Illinois income tax forms that you may need, plus all federal income tax forms.

Form Code	Form Name
Schedule UB-NLD	Unitary Illinois Net Loss Deduction [OBSOLETE]
Form IL-516-B	Pass-through Prepayment [OBSOLETE]
Schedule 1299-S	Enterprise Zones, Foreign Trade Zones, and Sub-Zones
Form IL-1120	Corporation Income and Replacement Tax Return Tax Return
Form IL-1041-V	Payment Voucher for Fiduciary Income and Replacement Tax Voucher

Download all IL tax forms View all 76 Illinois Income Tax Forms

Form Sources:

Illinois usually releases forms for the current tax year between January and April. We last updated Illinois Schedule 4255 from the Department of Revenue in January 2025.

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Schedule 4255 is an Illinois Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.

About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Illinois Schedule 4255

We have a total of eleven past-year versions of Schedule 4255 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:

2024 Schedule 4255