Defining Tax Credits

To define tax credits, use the Tax Credit (TAX_CREDITS) component and the Credit Status (TAX_CR_STATUS) component.

This topic discusses how to set up tax credits.

Page Name

Definition Name

Usage

Credits Page

TAX_CREDIT

Set up your own tax credit tables or modify existing tables.

Tax Credit Status

TAX_CR_STATUS

Set up credit statuses for tax credits by country.

PeopleSoft Asset Management is delivered with tax credits defined as business incentive credits:

  • Energy Tax Credit

  • Regular Investment Tax Credit

  • Rehabilitation Tax Credit

These credits are based on existing U.S. tax law, and it is recommended that you review the delivered Tax Credit table before adding any credits.

Use the Credits page (TAX_CREDIT) to set up your own tax credit tables or modify existing tables.

Image: Credits page

This example illustrates the fields and controls on the Credits page. You can find definitions for the fields and controls later on this page.

Credits page

Field or Control

Definition

Reduction Type

Indicates whether a reduction in the cost basis is required. Three codes are provided:

B: Basis reduction

P: Percentage rate reduction

N: No reduction

Tax Credit

Enter the tax credit amount.

Basis Reduction Rate Percent

Enter the corresponding rate to reduce the basis. A basis reduction rate of 100 percent means that there will be no reduction in the cost basis of the asset to which the tax credit rate is applied.