OMB No. 1545-1978 Form 5884-A Credits for Affected Midwestern Disaster

Area Employers

Department of the Treasury

Internal Revenue Service

© Attach to your tax return. Attachment

Sequence No. 77A

Name(s) shown on return Identifying number

1 Enter the total qualified wages paid or incurred after the applicable disaster date and

before January 1, 2009, while the business was inoperable 1

Multiply line 1 by 40% (.40). See instructions for the adjustment you must make to

salaries and wages

2

2

Employee retention credit from partnerships, S corporations, cooperatives, estates,

and trusts

3

3

Current year credit. Add lines 2 and 3. Report this amount on the applicable line of

Form 3800 (e.g., line 1t of the 2008 Form 3800). If you have a credit from Section B, see 

instructions. S corporations, partnerships, estates, trusts, cooperatives, regulated

investment companies, and real estate investment trusts, see instructions

4

4

For Paperwork Reduction Act Notice, see instructions. Cat. No. 47425B Form 5884-A (Rev. 12-2008)

SECTION A. Employee Retention Credit (see instructions)

SECTION B. Employer Housing Credit (see instructions)

Enter the value (up to $600 per month per employee) of qualified lodging furnished

in-kind to qualified employees during the tax year from November 1, 2008, through 

May 1, 2009 (see instructions)

5

5

Multiply line 5 by 30% (.30). See instructions for the adjustment you must make to

salaries and wages

6

6

Employer housing credit from partnerships, S corporations, cooperatives, estates,

and trusts 

7

7

Current year credit. Add lines 6 and 7. Report this amount on the applicable line of

Form 3800 (e.g., line 1t of the 2008 Form 3800). If you have a credit from Section A, see 

instructions. S corporations, partnerships, estates, trusts, cooperatives, regulated

investment companies, and real estate investment trusts, see instructions

8

8

(Rev. December 2008)
Form 5884-A (Rev. 12-2008) Page 2

General Instructions

Purpose of Form

An eligible employer who conducted an active trade or

business in a Midwestern disaster area may claim the

employee retention credit. The credit is equal to 40% of

qualified wages paid or incurred before January 1, 2009,

for each eligible employee (up to a maximum of $6,000

in qualified wages per employee). See Employee

Retention Credit below. The employer must use Form

5884-A to figure the credit.

A qualified employer may claim the employer housing

credit. The credit is equal to 30% of the value (up to

$600 a month, per employee) of lodging furnished

in-kind from November 1, 2008, through May 1, 2009,

to a qualified employee that is excluded from the

employee’s income. See Employer Housing Credit

below. The employer must use Form 5884-A to figure

the credit.

The employee retention credit and employer housing

credit are part of the general business credit claimed on

Form 3800, General Business Credit. No portion of the

unused business credit attributable to the employee

retention or employer housing credit can be carried

back to any tax year before 2008. However, you may be

able to carry the unused portion forward. See the

Instructions for Form 3800 for details.

Employee Retention Credit

Eligible employer. For this purpose, an eligible

employer is generally an employer who conducted an

active trade or business on the applicable disaster date

in a Midwestern disaster area, and whose trade or

business was inoperable on any day after the applicable

disaster date and before January 1, 2009, because of

damage sustained from the severe storms, tornadoes,

or flooding that caused the area to be declared a

disaster area. However, an employer who employed an

average of more than 200 employees on business days

during the tax year before the applicable disaster date

cannot claim the credit.

Eligible employee. For this purpose, an eligible

employee is an employee whose principal place of

employment on the applicable disaster date, with such

eligible employer, was in a Midwestern disaster area.

Midwestern Disaster Areas

An employee is not an eligible employee if the

employee is treated as an eligible employee for

purposes of the work opportunity credit.

The Midwestern disaster areas are those areas that

gave rise to the declaration of a major disaster by the

President during the period May 20, 2008, through July

31, 2008, in the states of Arkansas, Illinois, Indiana,

Iowa, Kansas, Michigan, Minnesota, Missouri,

Nebraska, and Wisconsin. These major disaster

declarations are a result of the severe storms,

tornadoes, and flooding that began on an applicable

disaster date and affected parts of the Midwest. The

following listing of Midwestern disaster areas provides

the applicable disaster dates.

Arkansas (applicable disaster date May 2, 2008). The

counties of Arkansas, Benton, Cleburne, Conway,

Crittenden, Grant, Lonoke, Mississippi, Phillips, Pulaski,

Saline, and Van Buren.

Illinois (applicable disaster date June 1, 2008). The

counties of Adams, Calhoun, Clark, Coles, Crawford,

Cumberland, Douglas, Edgar, Hancock, Henderson,

Jasper, Jersey, Lake, Lawrence, Mercer, Rock Island,

Whiteside, and Winnebago.

Indiana (applicable disaster date June 6, 2008). The

counties of Adams, Bartholomew, Brown, Clay, Daviess,

Dearborn, Decatur, Gibson, Grant, Greene, Hamilton,

Hancock, Hendricks, Henry, Huntington, Jackson,

Jefferson, Jennings, Johnson, Knox, Lawrence, Madison,

Marion, Monroe, Morgan, Owen, Parke, Pike, Posey,

Putnam, Randolph, Ripley, Rush, Shelby, Sullivan,

Tippecanoe, Vermillion, Vigo, Washington, and Wayne.

Iowa (applicable disaster date May 25, 2008). The

counties of Adair, Adams, Allamakee, Appanoose,

Audubon, Benton, Black Hawk, Boone, Bremer,

Buchanan, Butler, Cass, Cedar, Cerro Gordo, Chickasaw,

Clarke, Clayton, Clinton, Crawford, Dallas, Davis, Decatur,

Delaware, Des Moines, Dubuque, Fayette, Floyd, Franklin,

Fremont, Greene, Grundy, Guthrie, Hamilton, Hancock,

Hardin, Harrison, Henry, Howard, Humboldt, Iowa,

Jackson, Jasper, Johnson, Jones, Keokuk, Kossuth, Lee,

Linn, Louisa, Lucas, Madison, Mahaska, Marion, Marshall,

Mills, Mitchell, Monona, Monroe, Montgomery, Muscatine,

Page, Polk, Pottawattamie, Poweshiek, Ringgold, Scott,

Story, Tama, Union, Van Buren, Wapello, Warren,

Washington, Webster, Winnebago, Winneshiek, Worth,

and Wright.

Missouri (applicable disaster date June 1, 2008).

The counties of Adair, Andrew, Callaway, Cass,

Chariton, Clark, Gentry, Greene, Harrison, Holt,

Johnson, Lewis, Lincoln, Linn, Livingston, Macon,

Marion, Monroe, Nodaway, Pike, Putnam, Ralls, St.

Charles, Stone, Taney, Vernon, and Webster.

Wisconsin (applicable disaster date June 5, 2008).

The counties of Adams, Calumet, Crawford, Columbia,

Dane, Dodge, Fond du Lac, Grant, Green, Green Lake,

Iowa, Jefferson, Juneau, Kenosha, La Crosse,

Manitowoc, Marquette, Milwaukee, Monroe, Ozaukee,

Racine, Richland, Rock, Sauk, Sheboygan, Vernon,

Walworth, Washington, Waukesha, and Winnebago.

Missouri (applicable disaster date May 10, 2008).

The counties of Barry, Jasper, and Newton.

Nebraska (applicable disaster date May 22, 2008).

The counties of Buffalo, Butler, Colfax, Custer, Dawson,

Douglas, Gage, Hamilton, Holt, Jefferson, Kearney,

Lancaster, Platte, Richardson, Sarpy, and Saunders.

Employer Housing Credit

Qualified employer. A qualified employer is any

employer with a trade or business located in a

Midwestern disaster area that was affected by the

storms, tornadoes, or flooding that caused the area to

be declared a disaster area.

For purposes of the employer housing credit, the

following apply.

CAUTION
Form 5884-A (Rev. 12-2008) Page 3

Line 2

In general, you must reduce your deduction for salaries

and wages by the amount on line 2. You must make this

reduction even if you cannot take the full credit this year

because of the tax liability limit on Form 3800. If you

capitalized any costs on which you figured the credit,

reduce the amount capitalized by the amount of the

credit attributable to these costs.

Qualified employee. A qualified employee is an

individual who had a principal residence in a

Midwestern disaster area on the applicable disaster

date, and who performs substantially all employment

services in a Midwestern disaster area for the qualified

employer. The employee cannot be related to you.

Qualified lodging. Qualified lodging is lodging furnished

in-kind to a qualified employee (and to the employee’s

spouse or dependents) by or on behalf of the qualified

employer from November 1, 2008, through May 1, 2009.

Qualified lodging is excluded from the employee’s

income. However, the amount excluded is treated as

wages for purposes of FICA and FUTA tax.

Specific Instructions

Section A. Employee Retention Credit

Member of controlled group or business under

common control. For purposes of figuring the credit, all

members of a controlled group of corporations (as

defined in section 52(a)) and all members of a group of

businesses under common control (as defined in

section 52(b)), are treated as a single taxpayer. As a

member, compute your credit based on your

proportionate share of qualified wages giving rise to the

group’s employee retention credit. Enter your share of

Enter the total qualified wages (defined above) paid or

incurred. Do not enter more than $6,000 for each

qualified employee.

Use Section A to figure the employee retention credit.

Use Section B to figure the employer housing credit.

Qualified wages. Qualified wages are wages you paid

to or incurred for eligible employees on any day after

the applicable disaster date and before January 1, 2009,

during the period beginning on the date your trade or

business first became inoperable at the employee’s

principal place of employment immediately before the

applicable disaster date, and ending on the date your

trade or business resumed significant operations at that

place. The amount of qualified wages that may be taken

into account is limited to $6,000 per employee. This

includes wages paid whether the employee performs no

services, performs services at a place of employment

other than the principal place of employment, or

performs services at the principal place of employment

before significant operations have resumed.

Line 3

Enter the amount of credit allocated to you as a

shareholder, beneficiary, partner, or patron of a

cooperative.

Line 4

Report the current year credit on Form 3800, except for

the entities that report as indicated below. If you also

have an employer housing credit from line 8, combine

that amount with the amount on line 4 and enter the

total on Form 3800.

Wages qualifying for the credit generally have the

same meaning as wages subject to the Federal

Unemployment Tax Act (FUTA). Qualified wages also

include amounts you paid for medical or hospitalization

expenses in connection with sickness or accident

disability. Qualified wages do not include wages paid to

your dependent or wages paid to an employee related

to you.

For agricultural employees, if the work performed by

any employee during more than half of any pay period

qualifies under FUTA as agricultural labor, the first

$6,000 of that employee’s wages subject to social

security and Medicare taxes are qualified wages.

Qualified wages for any employee must be reduced

by the amount of any work supplementation payment

you received under the Social Security Act for the

employee.

Line 1

Cooperatives. A cooperative described in section

1381(a) must allocate to its patrons the credit in excess

of its tax liability limit. Therefore, to figure the unused

amount of the credit allocated to patrons, the

cooperative must first figure its tax liability. While any

excess is allocated to patrons, any credit recapture

applies as if the cooperative had claimed the entire

credit.

Section B. Employer Housing Credit

Member of controlled group or business under

common control. For purposes of figuring the credit, all

members of a controlled group of corporations (as

defined in section 52(a)) and all members of a group of

businesses under common control (as defined in

section 52(b)), are treated as a single taxpayer. As a

member, compute your credit based on your

proportionate share of qualified lodging giving rise to

the group’s employer housing credit. Enter your share

of the credit on line 6. Attach a statement showing how

your share of the credit was figured, and write “See

attached” next to the entry space for line 6.

Regulated investment companies and real estate

investment trusts. Reduce the allowable credit to the

company’s or trust’s ratable share of the credit.

Estates and trusts. Allocate the credit on line 4

between the estate or trust and beneficiaries in

proportion to the income allocable to each. On the

dotted line next to line 4, the estate or trust should enter

its part of the total credit. Label it “1041 Portion” and

use this amount on Form 3800 to figure the credit to

claim on Form 1041.

S corporations and partnerships. Report the amount

from line 4 on Schedule K.

the credit on line 2. Attach a statement showing how

your share of the credit was figured, and write “See

attached” next to the entry space for line 2.
Form 5884-A (Rev. 12-2008) Page 4

If you have comments concerning the accuracy of

these time estimates or suggestions for making this

form simpler, we would be happy to hear from you. See

the instructions for the tax return with which this form is

filed.

Recordkeeping 2 hr., 23 min.

Learning about the law

or the form 18 min.

Preparing and sending

the form to the IRS 21 min.

The time needed to complete and file this form will

vary depending on individual circumstances. The

estimated burden for individual taxpayers filing this form

is approved under OMB control number 1545-0074 and

is included in the estimates shown in the instructions for

their individual income tax return. The estimated burden

for all other taxpayers who file this form is shown below.

Paperwork Reduction Act Notice. We ask for the

information on this form to carry out the Internal

Revenue laws of the United States. You are required to

give us the information. We need it to ensure that you

are complying with these laws and to allow us to figure

and collect the right amount of tax.

You are not required to provide the information

requested on a form that is subject to the Paperwork

Reduction Act unless the form displays a valid OMB

control number. Books or records relating to a form or

its instructions must be retained as long as their

contents may become material in the administration of

any Internal Revenue law. Generally, tax returns and

return information are confidential, as required by

section 6103.

Line 7

Enter the amount of credit allocated to you as a

shareholder, beneficiary, partner, or patron of a

cooperative.

Line 8

Report the current year credit on Form 3800, except for

the entities that report as indicated below. If you also

have an employee retention credit on line 4, combine

that amount with the amount on line 8 and enter the

total on Form 3800.

S corporations and partnerships. Report the amount

from line 8 on Schedule K.

Estates and trusts. Allocate the credit on line 8

between the estate or trust and beneficiaries in

proportion to the income allocable to each. On the

dotted line next to line 8, the estate or trust should enter

its part of the total credit. Label it “1041 Portion” and

use this amount on Form 3800 to figure the credit to

claim on Form 1041.

Line 5

Enter the value of qualified lodging furnished in-kind to

qualified employees between November 1, 2008, and

May 1, 2009. Do not enter more than $600 per month,

per employee.

Regulated investment companies and real estate

investment trusts. Reduce the allowable credit to the

company’s or trust’s ratable share of the credit.

Line 6

In general, you must reduce your deduction for salaries

and wages by the amount on line 6. You must make this

reduction even if you cannot take the full credit this year

because of the tax liability limit on Form 3800. If you

capitalized any costs on which you figured the credit,

reduce the amount capitalized by the amount of the

credit attributable to these costs.

Cooperatives. A cooperative described in section 

1381(a) must allocate to its patrons the credit in excess

of its tax liability limit. Therefore, to figure the unused

amount of the credit allocated to patrons, the

cooperative must first figure its tax liability. While any

excess is allocated to patrons, any credit recapture

applies as if the cooperative had claimed the entire

credit.