Vermont PE Income Adjustments Schedule Instructions (BI-476, 2025)

# preamble

2025 FORM BI-476 Instructions Business Income Tax Return - Vermont Resident Only For Subchapter S Corporations, Partnerships, and Limited Liability Companies, which meet ALL of the following conditions: • All shareholders, partners, or members are residents of Vermont. • All shareholders, partners, or members are individuals or trusts. • Owe the minimum tax of $250, or is exempt from the minimum tax as a qualifying investment club or as a partnership electing not to be taxed as a partnership under I.R.C. § 761, and no additional tax due (such as built-in gains or LIFO recapture). If any of these conditions are not met, do not file Form BI-476. File Form BI-471, Business Income Tax Return, and all required schedules. Forms and Schedules Summary • Form BI-476, Vermont Business Income Tax Return. If eligible as described above, Form BI-476 is for use by pass-through entities to file the Vermont business income tax return and pay the minimum tax due. These entities include Subchapter S Corporations, Partnerships, and Limited Liability Companies that elect to be treated as S-Corps or Partnerships for federal filing purposes. NOTE: Form BI-476 (where applicable) is the first page of every return and the return is incomplete without it. • Form BA-403, Application for Extension of Time to File Vermont Corporate/Business Income Tax Return. To request an extension of time to file Vermont Corporate or Business Income Tax Return, and make payment, if desired. • Schedule BA-404, Tax Credits Earned, Applied, Expired, and Carried Forward. To report income tax credits earned, applied, or carried forward by the business. • Schedule BA-406, Credit Allocation Schedule. To allocate tax credits earned in the current year (reported on Schedule BA-404) to shareholders/partners/members. NOTE: DO NOT file Schedule(s) K-1VT, Shareholder, Partner, or Member Information, with Form BI-476 unless Vermont adjustments are reported. If your business must prepare and file Schedule(s) K-1VT for this reason, it need only complete Parts I and II.

# Who Must File

Effective for tax years beginning on or after Jan. 1, 1997, every Subchapter S Corporation, Partnership, and Limited Liability Company which engages in activities in Vermont must file a return, either Form BI-476 or Form BI-471, with the Commissioner of Taxes. This includes entities receiving income as a shareholder, partner, or member. NOTE: Single member LLCs which have elected to be classified for federal purposes as disregarded entities and report their entity's activity on Form 1040, U.S. Individual Income Tax Return, Schedule C, Profit or Loss from Business (Sole Proprietorship), are not required to file Form BI-471 or Form BI-476. 1 - 5

Dates for Filing and Payments Subchapter S Corporation, Partnership, and Limited Liability Company returns are due on the date prescribed for filing under the Internal Revenue Code. For calendar year filers, this date will generally be March 15. For fiscal year filers, the return is due the 15th day of the third month following the end of the fiscal year. The payment of the annual entity tax of $250 is due on or before the original due date of the return. Entities holding federal extensions may file thirty days after the extended federal due date. These entities must file Form BA-403 by the original return due date. An extension of time to file does not extend the time to pay the tax due. Any tax due, including the Vermont minimum tax, must be paid by the original due date of the return. Any tax due which is unpaid by the original due date will accrue interest and late payment penalties. What to Include with the filing: • Form BI-476 • Federal Information - The first five pages of the federal income tax return filed (1065 or 1120S). Federal Schedule K-1(s) is required with the original filing if the return is mailed to the Department. However, the Vermont Department of Taxes reserves the right to require a complete copy of the federal income tax returns and all federal schedules at any point during review or audit of the Vermont filing. • Schedule(s) K-1VT if Vermont adjustments are reported. • Schedules BA-404 and BA-406, if tax credits have been earned this tax year. Tax Due The tax due for businesses filing Form BI-476 is $250 unless the filing entity qualifies for an exception from the minimum tax. The tax is due on the original, un-extended due date of the federal return. The tax is due for the tax year whether it is a full year or a short period. Interest, Late Fees, and Penalties Interest is charged on payments not made on or by the statutory due date. The rate of interest is established each year with reference to the average prime rate. Payments not made and returns not filed when due are subject to a failure to pay/file penalty of 5% per month of the outstanding liability up to 25%. If the filing is more than 60 days late from the original due date, even if no tax is due, a $50 late penalty applies unless timely filed under extension. The Commissioner of Taxes may abate penalties for reasonable cause. Facsimile Substitute Forms Any facsimile or substitute form must be approved by the Department of Taxes prior to its use. If you use computer-generated returns, the software company is responsible for requesting approval and receiving an assigned bar code. A $25 fee may be assessed for a taxpayer or preparer who files returns that cannot be processed or require special steps to process. Call 802-828-2512 for further information on facsimile or substitute forms. Appeals All appeals for any return adjustment, assessment, bill, and/or reduced refund should be addressed to: Vermont Department of Taxes, PO Box 1645, Montpelier, VT 05601-1645. Appeals must be received within 60 days of the notice of adjustment.

Business Income Tax Return (Short Form) Instructions Please use blue or black ink only. Please do not staple or bind your return. You may use binder clips, paper clips, or rubber bands. "Mixed forms" warning - The Department of Taxes cannot process a return package which includes Vermont forms and schedules from multiple sources. All forms and schedules must be from the same software vendor or must be original forms issued by the Department. Filing a package of forms from different sources will result in delayed processing, a request for a processable return, and the assessment of a manual processing fee. Header Information - REQUIRED ENTRIES Enter the Entity Name and Address. Enter the Foreign Country for the business entity if other than the United States. Check the appropriate box if: • The entity's name changed • The mailing address changed • There is an accounting period change. • This return is an extended return (in which case Form BA-403 must have been filed for this tax year). • This is the initial return for this business entity. • This is a pro forma - cannabis return for this business entity. • This is the final return for this business entity (in which case the account for this business entity will be cancelled after processing this return). Enter the business entity's Federal Employer Identification Number (FEIN). Enter the Tax year BEGIN date, in the format YYYYMMDD. (For example, July 1, 2023, would be written as 20230701. Enter the Tax year END date, also in the format YYYYMMDD. Enter the Entity's Primary 6-Digit NAICS number. NAICS is the North American Industry Classification System used to classify businesses for statistical purposes. The United States Census Bureau is the official agency in charge of NAICS code numbers. NAICS code numbers can be looked up using a keyword search at census.gov/naics. Another website that is helpful in determining the NAICS code number is naics.com/search. This website also provides keyword searches and tables, together with instructions for determining your code. The code must be six digits. Check the appropriate box to indicate the federal tax return filed: • 1120S • 1065 • Other

Line-by-Line Instructions Preliminary Questions - REQUIRED ENTRIES A. Were any shareholders, partners, or members nonresidents of Vermont during this reporting tax year? Check the box for Yes or No. If "Yes," STOP and complete Form BI-471. This business entity is not eligible to file Form BI-476. B. During this reporting tax year, were any shareholders, partners, or members a C corporation, an S corporation, a partnership, or a limited liability company? Check the box for Yes or No. If "Yes," STOP and complete Form BI-471. This business entity is not eligible to file Form BI-476. C. Enter the total number of individual or trust shareholders, partners, or members your business has. VERMONT ADJUSTMENTS (everywhere values) Line 1 Bonus depreciation adjustment. Vermont does not allow the special "bonus" depreciation provision of I.R.C. § 168(k). If your business has utilized bonus depreciation in its items of income, all items should be recomputed to disregard the effects of the bonus depreciation. Insert the recomputed difference here. This amount can be negative or positive, to report the adjustment to income (as opposed to the adjustment to the depreciation deduction). For example, for the year an asset is placed in service, the depreciation expense for Vermont will be reduced, resulting in greater income. Report this item as a positive number if the net adjustments to bonus depreciation increase total federal income values. Report this item as a negative number if the net adjustments to bonus depreciation decrease total federal income values. Line 2 Other additions. If the items of your business' income exclude any income specifically included in taxable income pursuant to 32 V .S.A. § 5811(21)(A) and (28)(A), the adjustment must be reported on this line. Do not include the values for any state and local tax add-back pursuant 32 V .S.A. § 5811(28)(A)(iii), however, on Line 2. This value must be reported on Line 4. For example, any interest from non-Vermont state and local obligations must be added back to your business' income. Report any of these adjustments as a positive number on Line 2 and attach a statement delineating each addition included on the line. Line 3 Other subtractions. If the items of your business' income include any income specifically excluded from taxable income pursuant to 32 V .S.A. § 5811(21)(B) and (28)(B), the adjustment must be reported on this line. For example, income from U.S. government obligations must be subtracted from you business' income. Report any of these adjustments as a negative number on Line 3 and attach a statement delineating each subtraction included on the line.

# FOR TRUST PARTNERS ONLY

Line 4 SALT Add-back. Vermont does not allow trusts to deduct any state and local taxes on or measured by income, franchise taxes measured by net income, franchise taxes for the privilege of doing business, and capital stock taxes from their taxable income pursuant to 32 V .S.A. § 5811(28)(A)(iii). Your business must make an adjustment, adding back these values for the shares of income distributed to all trust owners. Report this adjustment as a positive number on Line 4.

# TAX COMPUTATION

Exceptions Check the applicable box if any of the following exceptions apply. Investment clubs whose assets do not exceed $20,000 and whose income does not exceed $5,000 are not required to pay the annual entity tax. Attach a copy of the balance sheet or year-end brokerage statement(s). Partnerships electing not to be taxed as partnerships, under I.R.C. § 761 or Check-the-Box Regulations are not required to pay the annual entity tax. Provide a statement as to the election being taken and cite the authority for the election. Line 5 Vermont minimum entity tax ($250). Enter $250 or the alternative amount if the entity qualifies for an exception from the $250 minimum tax. Line 6 Payments previously made for this tax year with extension Form BA-403 or credit available through prior year carryforward. If you made a payment with extension Form BA-403 for this tax year, enter the amount of the payment. If you have credit available through a prior year carryforward, enter the amount. If you made an extension payment and have prior year carryforward credit available, enter the sum of these. Line 7 Balance Due. If Line 5 is greater than Line 6, enter the difference here, and include payment with the return. Otherwise, enter -0-. Make your check payable to Vermont Department of Taxes. Line 8 Overpayment. If Line 6 is greater than Line 5, enter the difference here. Otherwise, enter -0-. Use Lines 9 and/or 10 to direct the overpayment as a refund or carryforward. Line 9 Overpayment to be Refunded. If Line 8 is greater than zero, enter the amount to be refunded. Line 10 Overpayment to be credited to next tax year. If Line 8 is greater than zero, enter the amount to be credited to next tax year. The sum of the amounts entered on Lines 9 and 10 must equal the amount entered on Line 8. Contacting the Department Mailing address: Taxpayer Services: 802-828-5723 Vermont Department of Taxes Email Address: tax.corporate@vermont.gov 133 State Street Website Address: tax.vermont.gov Montpelier, VT 05633-1401 Forms: 802-828-2515 1 - 5