Cloud Corporation has a taxable income of $100,000 in 2013 along with a $30,000 general business credit.What is the amount of its credit carryover and the last year to which the carryover could be used?

Question

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The general business credit is limited to the net income tax minus the greater of the tentative minimum tax or 25% of the net regular tax liability above $25,000. For $100,000 taxable income, the tax is $22,250. The allowable credit is $7,750, leaving a carryover of $22,250 - $7,750 = $14,500. The carryover can be used for up to 20 years, until 2033.

Cloud Corporation Has a Taxable Income of $100,000 in 2013