Illinois Recapture of Investment Tax Credits

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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 4 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

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

Description of
Reason for
Original basis
Name of enterprise
Credit
Disqualified
qualified property
disqualification
zone or river edge
rate
credit amount
redevelopment zone (Col. E x Col. G)

1 a
b
c
d

2
Add Column H, Lines 1a through 1f. Enter the Column H total on Line 11, Column A. 2

Step 2: Figure your High Impact Business Investment Credit recapture

Date property placed
Date property
Description of
Reason for
Original basis
Name of the
Credit
Disqualified
in service in Illinois became disqualified
qualified property
disqualification
foreign trade zone/
rate
credit amount
Month Year
Month Year sub-zone (Col. E x Col. G)

3 a
b
c

4 Add Column H, Lines 3a through 3f. Enter the Column H total on Line 11, Column B.

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

Step 3: Figure your REV Illinois Investment Credit recapture

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

Description of
Reason for
Original basis
Location of REV
Credit
Disqualified
qualified property
disqualification
Illinois Project
rate
credit amount
(Col. E x Col. G)

5 a
b
c
d

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

6
Add Column H, Lines 5a through 5f. Enter the Column H total on Line 11, Column C. 6

Schedule 4255 (R-12/22)

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.

Page 1 of 3

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Step 4: Figure your Replacement Tax Investment Credit recapture

Original basis

Date property placed Date property
Description of
Reason for
Credit
Disqualified
in service in Illinois became disqualified
qualified property
disqualification
rate
credit amount
Month Year
Month Year
(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 11, Column D.

Step 5: F
igure your total Enterprise Zone Investment Credit, or River Edge
Redevelopment Zone Investment Credit, High Impact Business Investment
Credit, REV Illinois Investment Credit, and Replacement Tax Investment
Credit recapture amount
A B C D

Enterprise Zone
High Impact
REV Illinois
Replacement Tax
or River Edge
Business
Investment
Investment
Redevelopment Investment Credit
Credit
Credit
Zone Investment
recapture
recapture
recapture
Credit recapture

9 Enter the total basis of all your property. See instructions.

10 Enter the amount of your original credit. See instructions.

11 Enter the total disqualified credit amounts from
Steps 1, 2, 3, and 4.

12 Subtract Line 11 from Line 10. This is your adjusted credit. 12

13 Enter your original tax amount. See instructions.

14 Enter the lesser of Line 10 or Line 13.
This is the amount of credit you previously used.
14

15 Subtract Line 12 from Line 14. If the result is
negative, enter zero.

16 Enter the amount of recapture from any other
Schedule 4255 filed this year. See instructions.

17 Distributive share of recapture from partnerships
and S corporations from Schedule(s) K-1-P.

18 Add Lines 15, 16, and 17.

19 Partnerships and S corporations - Enter the amount
from Line 18 that you passed through to your partners
or shareholders. See instructions.
20

Total Enterprise Zone Investment Credit or River Edge Redevelopment
Zone Investment Credit, High Impact Business Investment Credit,
REV Illinois Investment Credit, and Replacement Tax Investment
Credit recapture. Subtract Line 19 from Line 18.
See instructions.
20

If you attach multiple Schedules 4255, complete Step 6 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 6.

Page 2 of 3

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

Schedule 4255 (R-12/22)

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Step 6: Figure your additional income tax credit recapture amount
21 Enter the amount of Angel Investment Credit claimed for any prior year. See instructions.

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

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

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

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

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

27 Total income tax credit recapture. Add Lines 21, 22, 23, 24, 25, and 26. See instructions.

Schedule 4255 (R-12/22)

Page 3 of 3

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Extracted from PDF file 2023-illinois-schedule-4255.pdf, last modified July 2023

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More about the Illinois Schedule 4255 Corporate Income Tax Tax Credit TY 2023

We last updated the Recapture of Investment Tax Credits in February 2024, so this is the latest version of Schedule 4255, fully updated for tax year 2023. You can download or print current or past-year PDFs of Schedule 4255 directly from TaxFormFinder. You can print other Illinois tax forms here.

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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
Form IL-1041-V	Payment Voucher for Fiduciary Income and Replacement Tax Voucher
Schedule UB-NLD	Unitary Illinois Net Loss Deduction [OBSOLETE]
Form IL-1120-ST	Small Business Corporation Replacement Tax Return (Includes Schedule B) Tax Return
Form IL-1041	Fiduciary Income and Replacement Tax Return (Includes Schedule D) Tax Return
Form IL-1120	Corporation Income and Replacement Tax Return Tax Return

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 February 2024.

Show Sources >

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 ten 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:

2023 Schedule 4255