Port Activity Tax Credit
On this page find information and instructions for claiming the Port Activity Tax Credit.
- Tax Credit Code: 114
- Tax Credit Code: 158 (2025)
- Carryforward shortened to 5 years
- Tax Credit Code: 159 (2025)
- Carryforward shortened to 5 years
Summary
- Port Activity Tax Credit: 114J or 158 (2025)
- Port Activity Investment Tax Credit: 114M or 159 (2025)
Businesses or the headquarters of any such businesses engaged in manufacturing, warehousing and distribution, processing, telecommunications, broadcasting, tourism, or research and development that have increased their port traffic during the previous 12-month period by more than 10% over their base year port traffic are qualified for increased job tax credits or investment tax credits.
“Base year port traffic” means the amount of imports and exports during the second preceding 12-month period. For example, if the taxpayer is trying to claim the credit for 2010, they would compare 2009 to 2008 and if the increase is more than 10%, they would qualify. NOTE: Base year port traffic must be at least 75 net tons, five containers, or 10 TEU’s. If not, the percentage increase in port traffic will be calculated using 75 net tons, five containers, or 10 TEU’s as the base. “Port traffic” means the amount of imports and exports by way of a waterborne ship or vehicle through a port facility.
Companies must meet Business Expansion and Support Act (BEST) criteria for the county in which they are located.
The tax credit amounts are as follows for all Tiers: An additional job tax credit of $1,250 per job; investment tax credit of 5%; or optional investment tax credit of 10%. Companies that create 400 or more new jobs, invest $20 million or more in new and expanded facilities, and increase their port traffic by more than 20% above their base year port traffic may take both job tax credits and investment tax credits.
Forms
The credit is claimed by filing the appropriate form for the applicable credit (job tax: Form IT-CA; investment tax: Form IT-IC or optional: Form IT-OIC) with the tax return and providing a statement with port numbers to verify the increase in port traffic.
IT-OIC Optional Investment Tax Credit Calculation