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Tax year beginning and ending dates, name and EIN of the IC-DISC, and name, EIN and address of the borrower.
1120-IC-DISC
Borrower’s Certificate of Compliance With the Rules for Producer’s Loans
- Agency
- IRS
- Revision
- Rev. September 2016
- Fillable fields
- 11
- Pages
- 1
- Official source
- IRS form page
- Checked
- October 21, 2026
Schedule Q (Form 1120-IC-DISC): Borrower's Certificate for Producer's Loans
Schedule Q (Form 1120-IC-DISC), Borrower's Certificate of Compliance With the Rules for Producer's Loans, is used to certify that a loan received from an interest charge domestic international sales corporation (IC-DISC) qualifies as a producer's loan.
The borrower certifies, under penalties of perjury, that the loan meets two tests: a limitation rule tied to its U.S. plant, equipment, inventory and research spending, and an increased investment requirement. The form says an IC-DISC may establish that the borrower met the requirements of sections 993(d)(2) and (3) by attaching to its return either Schedule Q or a written statement of compliance of the borrower certified by a certified public accountant.
This is the September 2016 revision, and the form says to attach it to Form 1120-IC-DISC. You can fill out Schedule Q free in your browser on this page and download it without an account.
What's on Schedule Q (Form 1120-IC-DISC)
Note on proof
Two ways the IC-DISC may establish compliance: attach Schedule Q, or attach a CPA-certified statement of compliance of the borrower.
A. Limitation Rule, items 1a to 1c
The adjusted basis of U.S. plant, machinery, equipment and production facilities, property held for sale, lease or rental, and U.S. research and experimental expenditures.
A. Limitation Rule, item 2
The percentage that the borrower's receipts from sales, leases or rentals outside the United States over the 3 preceding tax years are of its gross receipts from such property.
B. Increased Investment Requirement
The growth in adjusted basis of the assets in 1a and 1b during the tax year, plus U.S. research and experimental expenditures for that year.
Signature
Date (MM/DD/YYYY), signature of officer, and the officer's typed or printed name and title.
How to fill out Schedule Q (Form 1120-IC-DISC)
- 1
Tax year and IC-DISC
Enter the tax year beginning and ending dates, then the IC-DISC's name and employer identification number.
- 2
Borrower
Enter the borrower's name and EIN, its number and street, and its city or town, state or province, and ZIP or foreign postal code.
- 3
Review the limitation rule
The certificate states that this loan, added to the unpaid balance of the borrower's other qualified producer's loans outstanding when it was made, does not exceed the sum of items 1a to 1c multiplied by the item 2 percentage.
- 4
Review the investment test
It also states that the loan, added to the unpaid balance of producer's loans made during the borrower's tax year, does not exceed the amounts in part B.
- 5
Sign
An officer of the borrower signs under penalties of perjury, enters the date as MM/DD/YYYY, and types or prints a name and title.
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Where it goes and the loan rules
Where to send it
The form says to attach it to Form 1120-IC-DISC. The IC-DISC files that return; Schedule Q is not filed on its own.
When the return is due
The instructions say Form 1120-IC-DISC is filed by the 15th day of the 9th month after the IC-DISC's tax year ends, and no extensions are allowed.
Loan terms
The instructions say a producer's loan is evidenced by a note or other written evidence of indebtedness with a stated maturity date no more than 5 years after the loan date, and is designated as a producer's loan when made.
Balance limit
The instructions say the loan may not raise the unpaid balance due the IC-DISC on all its producer's loans above its accumulated IC-DISC income at the start of the month it made the loan.
More information
The instructions point to Regulations section 1.993-4 for the producer's loan rules.
Related forms
1120-IC-DISC
Interest Charge Domestic International Sales Corporation Return
483 fields, 7 pages
1120-IC-DISC Sch. K
Shareholder's Statement of IC-DISC Distributions
60 fields, 5 pages
1120-IC-DISC Sch. P
Intercompany Transfer Price or Commission
56 fields, 2 pages
4876-A
Election To Be Treated as an Interest Charge DISC
74 fields, 2 pages
8404
Interest Charge on DISC-Related Deferred Tax Liability
30 fields, 2 pages
Who completes Schedule Q (Form 1120-IC-DISC)?
The certificate is made by the borrower that received the loan and signed by an officer. The IC-DISC that made the loan attaches it to its Form 1120-IC-DISC. It is a business certificate, not a form for individuals.
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Questions about Form 1120-IC-DISC
Who signs Schedule Q (Form 1120-IC-DISC)?
An officer of the borrower, under penalties of perjury, with the date and a typed or printed name and title.
Who attaches it to a return?
The IC-DISC that made the loan. The form says to attach it to Form 1120-IC-DISC.
Is Schedule Q the only way to show compliance?
No. The form says the IC-DISC may instead attach a written statement of compliance of the borrower certified by a certified public accountant.
What is a producer's loan?
The instructions describe a loan that meets sections 993(d)(2) and (3), is made to a person in a U.S. business of making, growing, or extracting export property, and is designated as a producer's loan when made.
What are the two tests on the certificate?
Part A, the limitation rule, and part B, the increased investment requirement. Each compares the loan, added to the unpaid balance of other producer's loans, with amounts based on the borrower's U.S. assets and research and experimental expenditures.