The credit is available for up to 3 years. The credit may not reduce the tax below the higher of the fixed dollar minimum or the alternative minimum tax. Any unused credit may be carried over indefinitely. In addition, a taxpayer qualifying as a new business may elect to have the carryover refunded. The credit is claimed in the year the investment is initially made.
Investments made by or on behalf of an owner of the business are ineligible.
Again, the credit may not reduce the tax below the higher of the fixed dollar minimum or the alternative minimum tax. The credit is not refundable, however any unused credit may be carried over indefinitely. If a taxpayer disposes of or recovers a qualified investment, a recapture of some or all of the credit is required. Gain deferred under this provision must be recognized when the replacement QETI is sold. However, gain on the sale of the replacement QETI can be deferred if another replacement QETI is acquired within 365 days.