Form 5884-A Credits for Affected Midwestern Disaster Area Employers

December 2008
Form

5884-A

(October 2006)

Credits for Affected Midwestern Disaster Area Employers

Credits for Employers Affected by
Hurricane Katrina, Rita, or Wilma
©

Department of the Treasury
Internal Revenue Service

OMB No. 1545-1978
Attachment
Sequence No.

Attach to your tax return.

Name(s) shown on return

77A

Identifying number

SECTION A. Employee Retention Credit (see instructions)
the total qualified
wages
or incurred after
the applicable
date
1a Enter
Employers
affected
bypaid
Hurricane
Katrina,
enter disaster
the total
and
before January
2009, or
while
the business
wasAugust 28, 2005, and
qualified
wages1,paid
incurred
after
inoperable.......................................................
before January 1, 2006, while the business was inoperable

1a

b Employers affected by Hurricane Rita, enter the total qualified
wages paid or incurred after September 23, 2005, and before
January 1, 2006, while the business was inoperable

1b

c Employers affected by Hurricane Wilma, enter the total qualified
wages paid or incurred after October 23, 2005, and before
January 1, 2006, while the business was inoperable

1c

d Add amounts from lines 1a, 1b, and 1c

1d

Multiply line 1 by 40% (.40).

2

3

Enter 40% of line 1d. You must subtract this amount from your deduction for salaries
and wages See instructions for the adjustment you must make to salaries and wages

2

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

3

(e.g., line 1t of the 2008 Form 3800)

4

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

SECTION B. Employer
Hurricane Katrina Housing Credit (see instructions)
Enter the value (up to $600 per month per employee) of qualified lodging furnished
1, 2008
in-kind to qualified employees during the tax year from November
January 1,
2006, through July 1,
May 1, 2009
2006 (see instructions)
5

5 by of
30%
(.30).
6 Multiply
Enterline
30%
line
5. You must subtract this amount from your deduction for salaries and
wages See instructions for the adjustment you must make to salaries and wages

7 Employer
Hurricane Katrina housing credit from partnerships, S corporations, cooperatives,
estates, and trusts

5

6

7

(e.g., line 1t of the 2008 Form 3800)

8

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

For Paperwork Reduction Act Notice, see instructions.
page 4.

Cat. No. 47425B

8
Form

5884-A

(10-2006)

12-2008

12-2008
Form 5884-A (10-2006)

Purpose of Form

Purpose of Form

Page

2

Midwesternemployee.
Disaster Areas For
Eligible

this purpose, an eligible
employee is an employee whose principal place of
employment
September
23, 2005,
withgave
such
The Midwestern on
disaster
areas are those
areas that
riseeligible
to the
employer,
was
in
the
Rita
GO
Zone.
declaration of a major disaster by the President during the period May 20,
Caution.
AnJuly
employee
is the
notstates
an eligible
employee
for
2008, through
31, 2008, in
of Arkansas,
Illinois, Indiana,
purposes
of
Hurricane
Rita
if
the
employee
is
treated
as
Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, and Wisconsin.
an eligible employee for purposes of the work
These major disaster declarations are a result of the severe storms,
opportunity
credit or for purposes of either the
tornadoes,
floodingorthat
on an applicable
disaster date and
Hurricaneand
Katrina
thebegan
Hurricane
Wilma employee
retention
credit.
affected parts
of the Midwest. The following listing of Midwestern disaster
areas provides Affected
the applicable
dates. Wilma
Employers
bydisaster
Hurricane
Eligible employer. For this purpose, an eligible
employer
is any disaster
employer
who2, conducted
anBenton,
active
Arkansas (applicable
date May
2008). Arkansas,
trade
or
business
on
October
23,
2005,
in
the
Cleburne, Conway, Crittenden, Grant, Lonoke, Mississippi,Wilma
Phillips, GO
Zone, and whose trade or business was inoperable on
Pulaski, Saline, and Van Buren.
any day after October 23, 2005, and before January 1,
2006, because of damage sustained from Hurricane
Illinois (applicable disaster date June 1, 2008). Adams, Calhoun, Clark,
Wilma.
Coles, Crawford,
Cumberland,
Douglas,
Edgar, an
Hancock,
Henderson,
Eligible
employee.
For this
purpose,
eligible
Jasper, Jersey,
Lake,
Lawrence, whose
Mercer, Rock
Island,place
Whiteside,
employee
is an
employee
principal
of and
employment
on
October
23,
2005,
with
such
eligible
Winnebago.
employer, was in the Wilma GO Zone.
Caution.
An employee
isJune
not6,an
eligible
employee
for
Indiana (applicable
disaster date
2008).
Adams,
Bartholomew,
purposes of Hurricane Wilma if the employee is treated
Brown, Clay, Daviess, Dearborn, Decatur,Gibson, Grant, Greene,
as an eligible employee for purposes of the work
Hamilton, Hancock,
Hendricks,
Henry, Huntington,
Jackson,
opportunity
credit
or for purposes
of either
the Jefferson,
Jennings, Johnson,
Knox,
Lawrence,
Madison,
Marion,
Monroe, Morgan,
Hurricane
Katrina
or the
Hurricane
Rita
employee
retention
credit.
Owen, Parke,
Pike, Posey, Putnam, Randolph, Ripley, Rush, Shelby,

An eligible employer who conducted an active trade or
business in the Gulf Opportunity (GO) Zone, the Rita GO
Midwestern
area may
the(defined
employeebelow)
retentionmay
credit.claim
The credit
Zone, ordisaster
the Wilma
GOclaim
Zone
isthe
equal
to 40% of qualified
wages
paid orThe
incurred
before
January
employee
retention
credit.
credit
is equal
to1, 2009, for
40%
of qualified
paid before
January
1, 2006,
each
eligible
employee wages
(up to a maximum
of $6,000
in qualified
wagesfor
per
each
eligible
employee
(up
to
a
maximum
of
$6,000
in
employee). See Employee Retention Credit, below. The employer must use
qualified wages per employee). See Employee Retention
Form 5884-A to figure the credit.
Credit below. The employer must use Form 5884-A to
figure the credit.
A qualified
employer
may claimmay
the employer
housing
The credit is
A qualified
employer
also claim
thecredit.
Hurricane
equal
to 30%
of the value
(up toThis
$600credit
a month,
employee)
in-kind
Katrina
housing
credit.
is per
equal
to 30 ofpercent
of thefurnished
value (up
$600 per
month,
perMay
employee)
lodging
fromto
November
1, 2008,
through
1, 2009, toof
a qualified
in-kind
lodging
furnished
from
January
1,
2006,
through
employee that is excluded from the employee's income. See Employer
July 1, 2006, to a qualified employee which is excluded
Housing Credit, on page 3. The employer must use Form 5884-A to figure the
from the employee’s income. See Employer Credit for
credit.
Housing Employees Affected by Hurricane Katrina
below. The employer must use Form 5884-A to figure
theemployee
credit. retention credit and employer housing credit are part of the
The
Thebusiness
employee
andGeneral
the Hurricane
general
creditretention
claimed on credit
Form 3800,
Business Credit. No
Katrina housing credit are part of the general business
portion of the unused business attributable to the employee retention or
credit claimed on Form 3800, General Business Credit.
employer housing credit can be carried back to any tax year before 2008.
No portion of the unused business credit attributable to
However,
you may be
able to housing
carry the unused
forward.
See the
the Hurricane
Katrine
creditportion
may be
carried
back to any
tax 3800
yearforbefore
Instructions
for Form
details.2005. However, you may be
able to carry the unused portion forward. See the
instructions for Form 3800 for details.
You can claim or elect not to claim the credits any
time within 3 years from the due date of your tax return
Sullivan, Tippecanoe, Vermillion, Vigo, Washington, and Wayne.
GO
Zones
(excluding extensions) on either your original or an
amended return.
Areas in a “GO Zone” are areas determined by the
Iowa (applicable disaster date May 25, 2008). Adair, Adams, Allamakee,
President
to warrant individual or individual and public
General Instructions
Appanoose, Audubon,
Benton,
Blackgovernment
Hawk, Boone, because
Bremer, Buchanan,
assistance,
from the
federal
of
Butler,
Cass,
Cedar,
Cerro
Gordo,
Chickasaw,
Clarke,
Clayton,
Clinton,
Hurricane
Katrina,
Rita,
or
Wilma.
Employee Retention Credit
Crawford, Dallas,
Davis, GO
Decatur,
Delaware, Des Moines, Dubuque,
Hurricane
Katrina
Zone
Employers Affected by Hurricane Katrina
Fayette,
Floyd, Franklin,
Fremont,
Grundy,
Guthrie,
Hamilton,
The
following
counties
and Greene,
parishes
are in
the Hurricane
Eligible
employer.
For this purpose,
an eligible
employer
is generally an
Eligible
employer.
For this
purpose,
an eligible
Katrina
Zone.
Hancock,GO
Hardin,
Harrison, Henry, Howard, Humboldt, Iowa, Jackson,
employer
who conducted
an active trade
business on the
employer
is any employer
whoorconducted
anapplicable
active
Jasper, Johnson,
Jones, Keokuk,
Kossuth,
Lee, Linn,
Louisa,
Lucas,
Alabama.
Baldwin,
Choctaw,
Clarke,
Greene,
Hale,
trade
or
business
on
August
28,
2005,
in
the
Zone,
disaster date in a Midwestern disaster area, and whose tradeGO
or business
Marengo,
Mobile,
Pickens,
Sumter,
Tuscaloosa,
and
Madison, Mahaska, Marion, Marshall, Mills, Mitchell, Monona, Monroe,
whoseontrade
orafter
business
was inoperable
on any
day
wasand
inoperable
any day
the applicable
disaster date and
before
Washington.
Montgomery, Muscatine, Page, Polk, Pottawattamie, Poweshiek, Ringgold,
after August 28, 2005, and before January 1, 2006,
January 1, 2009, because of damage sustained from the severe storms,
Louisiana.
Acadia,
Ascension,
Assumption,
Calcasieu,
because of damage sustained from Hurricane Katrina.
Scott, Story, Tama,
Union,
Van Buren, Wapello,
Warren, Washington,
tornadoes, or flooding that caused the area to be declared a disaster area.
Cameron,
East
Baton
Rouge,
East
Feliciana,
Iberia,
Eligible employee. For this purpose, an eligible
Webster, Winneshiek, Winnebago, Worth, and Wright.
However,
an
employer
who
employed
an
average
of
more
than
200
Iberville,
Jefferson,
Jefferson
Davis,
Lafayette,
employee is an employee whose principal place of
Lafourche, Livingston, Orleans, Plaquemines, Pointe
employees
on business
days during
tax year
before
theeligible
applicable
employment
on August
28,the
2005,
with
such
Missouri (applicable
disaster date
10, 2008).
Jasper,
Coupee,
St. Bernard,
St. May
Charles,
St.Barry,
Helena,
St.and Newton.
employer,
wasclaim
in the
Zone.
disaster
date cannot
the GO
credit.
James, St. John the Baptist, St. Martin, St. Mary, St.
Caution. An employee is not an eligible employee for
Tammany,
Tangipahoa,
Vermilion,
Missouri (applicable
disaster dateTerrebonne,
June 1, 2008). Adair,
Andrew, Callaway,
purposes
ofFor
Hurricane
Katrina
if the
employee
treated
Eligible
employee.
this purpose,
an eligible
employee
is an is
employee
Washington, West Baton Rouge, and West Feliciana.
Cass, Chariton, Clark, Gentry, Greene, Harrison, Holt, Johnson, Lewis,
as an eligible employee for purposes of the work
whose principal place of employment on the applicable disaster date, with
Mississippi.
Adams, Amite, Attala, Choctaw,
opportunity credit or for purposes of either the
Lincoln, Linn, Livingston, Macon, Marion, Monroe, Nodaway, Pike,
such
eligible
employer,
was
in
a
Midwestern
disaster
area.
Claiborne,
Clarke,
Copiah, Covington, Forrest, Franklin,
Hurricane Rita or the Hurricane Wilma employee
Putnam, Ralls, St. Charles, Stone, Taney, Vernon, and Webster.
George,
Greene, Hancock, Harrison, Hinds, Holmes,
retention credit.
Humphreys, Jackson, Jasper, Jefferson, Jefferson
Caution. An employee is not an eligible employee if the employee is treated
Employers Affected by Hurricane Rita
Davis,
Kemper,
Lamar,
NebraskaJones,
(applicable
disaster date
May 22,Lauderdale,
2008). Buffalo, Lawrence,
Butler, Colfax,
as an eligible employee for purposes of the work opportunity credit.
Leake,
Lincoln,
Lowndes,
Madison,
Marion,
Neshoba,
Eligible employer. For this purpose, an eligible
Custer, Dawson, Douglas, Gage, Hamilton, Holt, Jefferson,
Kearney,
Newton,
Noxubee,
Oktibbeha,
Pearl
River,
Perry,
Pike,
employer is any employer who conducted an active
Lancaster, Platte, Richardson, Sarpy, and Saunders.
Rankin, Scott, Simpson, Smith, Stone, Walthall,
trade or business on September 23, 2005, in the Rita
Warren, Wayne, Wilkinson, Winston, and Yazoo.
GO Zone, and whose trade or business was inoperable
Wisconsin (applicable disaster date June 5, 2008). Adams, Calumet,
on any day after September 23, 2005, and before
January 1, 2006, because of damage sustained from
Crawford, Columbia, Dane, Dodge, Fond du Lac, Grant, Green, Green
Hurricane Rita.
Lake, Iowa, Jefferson, Juneau, Kenosha, La Crosse, Manitowoc,
An eligible employer who conducted an active trade or business in a

Marquette, Milwaukee, Monroe, Ozaukee, Racine, Richland, Rock, Sauk,
Sheboygan, Vernon, Walworth, Washington, Waukesha, and Winnebago.

12-2008
Form 5884-A (10-2006)

Page

Rita GO Zone
The following counties and parishes are in the Rita GO
Zone.
Louisiana. Acadia, Allen, Ascension, Beauregard,
Calcasieu, Cameron, Evangeline, Iberia, Jefferson,
Jefferson Davis, Lafayette, Lafourche, Livingston,
Plaquemines, Sabine, St. Landry, St. Martin, St. Mary,
St. Tammany, Terrebonne, Vermilion, Vernon, and West
Baton Rouge.
Texas. Angelina, Brazoria, Chambers, Fort Bend,
Galveston, Hardin, Harris, Jasper, Jefferson, Liberty,
Montgomery, Nacogdoches, Newton, Orange, Polk,
Sabine, San Augustine, San Jacinto, Shelby, Trinity,
Tyler, and Walker.

caused the area to be declared a disaster area.

Wilma GO Zone
The following counties are in the Wilma GO Zone.
Florida. Brevard, Broward, Collier, Glades, Hendry,
Indian River, Lee, Martin, Miami-Dade, Monroe,
Okeechobee, Palm Beach, and St. Lucie.

Credit
Employer Credit for Housing Employees
Affected by Hurricane Katrina
For purposes of the employer
Hurricane Katrina housing credit,
the following apply.
Qualified employer. A qualified employer is any
employer with a trade or business located in the GO
a Midwestern
disaster
area
thataffected
was affected
the storms,Katrina.
tornadoes, or flooding that
Zone
that
was
by by
Hurricane
Qualified employee. A qualified employee is an
individual who had a principal residence in the GO Zone
a Midwestern disaster area on the applicable disaster date, and who
on August 28, 2005, and who performs substantially all
performs
substantially
all employment
services
in a
Midwestern
disaster
employment
services
in the GO
Zone
for
the qualified
employer.
The employee
cannot
be cannot
related
you.to you.
area
for the qualified
employer. The
employee
be to
related
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
November 1,
1, 2008
through
May 1,
2009.
employer from January
2006,
through
July
1, 2006.
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
Use Section A to figure the employee retention credit.
Use Section B to figure the employer
Hurricane Katrina housing
credit.

Section A. Employee Retention Credit

9

Qualified wages. Qualified wages are wages you paid
to or incurred for eligible employees on any day after
the
applicable
August
28,disaster
2005, date
in the case of Hurricane Katrina (after
September 23, 2005, in the case of Hurricane Rita, and
after October 23, 2005, in the case of Hurricane Wilma)
and before January 1, 2006, 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
hurricane,
business resumed significant operations at that place.

3

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.
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
expense 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.
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
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.
Line 1
Enter the total qualified wages (defined above) paid or
incurred. Do not enter more than $6,000 for each
qualified employee.
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.
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
employer Katrina housing credit from line 8,
have an
a Hurricane
combine that amount with the amount on line 4 and
enter the total on Form 3800.

12-2008
Form 5884-A (10-2006)

S corporations and partnerships. Report the amount
from line 4 on Schedule K.
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.
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.
Regulated investment companies and real estate
investment trusts. Reduce the allowable credit to the
company’s or trust’s ratable share of the credit.

Section B. Employer
Hurricane Katrina Housing
Credit
Member of contolled 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
Hurricane Katrina 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.

9

Line 5
Enter the value of qualified lodging furnished in-kind to
andand
MayJuly
qualified employees between November
January 1,
1,2008,
2006,
1, 2006. Do not enter more than $600 per month, per
employee.
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.

Page

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.
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.
Regulated investment companies and real estate
investment trusts. Reduce the allowable credit to the
company’s or trust’s ratable share of the credit.
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.
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.
Recordkeeping
6 min.
23 hr.,23
Learning about the law
or the form
24 min.
18
Preparing and sending
the form to the IRS
27 min.
21
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.

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.

4