HAR §15-6-12. December

Eight months d ivided by 12 months is 66.7 per cent ; (2) in the first year of the seven- year cycle, ABC is eligible for a credit of 80 per cent against any taxes due the State; (3) 67 per cent mul tiplied by 80 per cent is 53 . 36 per cent; and (4) 53 . 36 per cent of the $1 , 000 tax liability is $533 . 60 . ABC is also eligible for a credit of $266 . 80 , which is 53 . 36 per cent of the $500 unemployment insurance premiums paid . Thus ABC may claim total credits of $800 . 40 after the first year of the seven-year cycle . ABC , however, will owe a balance of $199 . 60 for state income taxes . Example 5 : Assume the same facts as in Example 4, except that at the end of 1994 , year 2 of the cycle, ABC determines t hat it owes $1,000 in net income taxes . ABC pays $1 , 000 in unemployment insura nce premiums during 1994. ABC is certifi ed to receive tax benefits. When ABC files i ts income t ax returns for the taxabl e year ending December 31, 1994, ABC is eligible for a tax credit of $266 . 40 , calculated as follows : (1) ABC is eligible for four more months of credit for the first year of the seven-year cycle . Four months divided by 12 months is 33 per cent ; (2) 33 per cent multiplied by 80 per cent is 26 . 64 per cent; and (3) 26 . 64 per cent of $1 , 000 is $266.40 . The second portion of the tax credit amounts to $466.90 , calculated as follows : (1 ) ABC is eligible for 8 months of credit in the second year. Eight months divided by 12 months is 66.7 per cent; (2) ABC i s eligible for a credit of 70 per cent against any taxes due the State in the second year of t he cycle ; (3) 66.7 per cent multi plied by 70 per cent is 46 . 69 per cent; and (4) 46 . 69 per cent of $1,000 is $446 . 90. Third, 6-26 314 3