Header
The calendar year or other tax year beginning and ending dates, the corporation's name and its employer identification number.
5735
American Samoa Economic Development Credit
- Agency
- IRS
- Revision
- Rev. January 2013
- Fillable fields
- 14
- Pages
- 1
- Official source
- IRS form page
- Checked
- October 21, 2026
Form 5735: American Samoa Economic Development Credit
Form 5735 is a one-page corporate form. The IRS says a domestic corporation uses it to figure the American Samoa economic development credit under section 30A. The instructions say the credit is generally allowed against income tax imposed by Chapter 1, with some exceptions, and the form says to attach it to the corporation's tax return.
The form has seven lines. Line 1 takes a percentage of qualified compensation, lines 2 to 4 take percentages of the depreciation deduction for short-life, medium-life and long-life qualified tangible property, and line 7 is the smaller of the tentative credit or the U.S. income tax against which the credit is allowed.
The instructions say this January 2013 revision reflects changes made by section 330 of the American Taxpayer Relief Act of 2012 for tax years beginning after December 31, 2011. You can fill out Form 5735 free in your browser on this page and download the result without an account.
What's on Form 5735
Line 1: qualified compensation
60% of qualified compensation.
Lines 2 to 4: depreciation
15% of the depreciation deduction for short-life, 40% for medium-life and 65% for long-life qualified tangible property.
Lines 5 and 6
Line 5 is the tentative credit, the total of lines 1 through 4. Line 6 is the total U.S. income tax against which the credit is allowed.
Line 7: the credit
The American Samoa economic development credit, the smaller of line 5 or line 6, carried to Form 1120, Schedule J, line 5b, or the corresponding line of other returns.
How to fill out Form 5735
- 1
Tax year, name and EIN
Enter the calendar year or the other tax year's beginning and ending dates, the corporation's name and its employer identification number.
- 2
Line 1
The instructions say to enter 60% of the sum of qualified wages and allocable employee fringe benefit expenses. Wages per employee are limited to 85% of the OASDI contribution and benefit base, which they give as $110,100 for 2012 and $113,700 for 2013.
- 3
Fringe benefit limit
The instructions say allocable employee fringe benefit expenses cannot exceed 15% of the corporation's qualified wages for the tax year, and an amount treated as qualified wages may not also count as a fringe benefit expense.
- 4
Lines 2 to 4
Sort qualified tangible property by its section 168 class. The instructions define short-life as 3-year or 5-year property, medium-life as 7-year or 10-year property, and long-life as everything else.
- 5
Lines 5 to 7
Add lines 1 through 4 on line 5, enter the U.S. income tax against which the credit is allowed on line 6, and enter the smaller of the two on line 7. The instructions say to write "Form 5735" and the amount next to the entry space on the return.
Why fill Form 5735 on indox
You get the real form, filled in a browser tab, with nothing standing between you and the finished PDF.
- Fill the form right in your browser, no software to install
- Free to fill and free to download, with no account
- The official blank straight from the IRS, not a copy someone retyped
- Works on a phone, tablet or computer
Where it goes and limits on the credit
Where to file
The instructions say to attach Form 5735 to the corporation's income tax return and file the return with the Internal Revenue Service, P.O. Box 409101, Ogden, UT 84409.
Every election year
The instructions say the form is completed for each year the American Samoa economic development credit election is in effect.
Taxes the credit does not offset
The instructions list the accumulated earnings tax, personal holding company tax, the additional tax for recovery of foreign expropriation losses, and recapture of the investment, low-income housing and Indian employment credits.
Research credit overlap
The instructions say wages or other expenses used for this credit may not be taken into account in determining the research credit under section 41.
QPAI records
The instructions say QPAI is not reported on Form 5735 for tax years beginning in 2012, but corporations should calculate it and keep it for their records to show the IRS they qualify.
Time estimate
The instructions estimate recordkeeping at 7 hr., 53 min., learning about the law or the form at 2 hr., 17 min., and preparing and sending the form at 2 hr., 32 min.
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Who files Form 5735?
A corporation completes the form and attaches it to its own income tax return. It is not an individual form.
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Questions about Form 5735
Who files Form 5735?
The instructions say a domestic corporation, other than an S corporation, completes it for each year the American Samoa economic development credit election is in effect.
Where is Form 5735 filed?
It is attached to the corporation's income tax return. The instructions give the filing address as Internal Revenue Service, P.O. Box 409101, Ogden, UT 84409.
What percentages does the form use?
60% of qualified compensation on line 1, and 15%, 40% and 65% of the depreciation deduction for short-life, medium-life and long-life qualified tangible property on lines 2 to 4.
Where does the line 7 credit go?
The form says on Form 1120, Schedule J, line 5b, or the corresponding line of other returns. The instructions add that it goes on the same line as the qualified electric vehicle credit.
Is QPAI reported on the form?
The instructions say that for tax years beginning in 2012 it is not reported on Form 5735, but the corporation needs positive QPAI to qualify and should keep its calculation for its records.
Which revision is this?
The PDF is the January 2013 revision. The instructions point to the March 2007 revision for tax years beginning before January 1, 2012.