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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Any required recapture is reported on Form 4255, Recapture
of Investment Credit. For more information, see the form and
instructions for Form 4255.
See section 46(g)(4) (as in effect on November 4, 1990),
and related regulations, if you made a withdrawal from a
capital construction fund set up under the Merchant
Marine Act of 1936 to pay the principal of any debt incurred in
connection with a vessel on which you claimed investment
credit.
Specific Instructions
S Corporations, Partnerships,
Estates, and Trusts
Complete and attach a separate Form 3468 to your return for
each facility or property that you use in your trade or business,
even if the following apply.
1. You cannot claim the credit,
2. You didn’t elect to treat section 48D credit as a payment
under section 48D(d), or
3. You didn’t elect to transfer section 48C credit or section 48
credit (or portion of such credits) under section 6418.
To figure the cost or basis of each facility or property to pass
through to the individual shareholders, partners, or beneficiaries,
complete required facility information lines of Part I and only the
following.
•
Part II, lines 1a, 2a, 3a, 4a, 5a, and 6 (if applicable).
•
Part III, lines 1a, 1d, 1e, and 2 (if applicable).
•
Part IV, lines 1a, 1b, and 2 (if applicable).
•
Part VI, lines 1a, 3a, 3e, 5a, 5f, 5o, 7a, 7j, 9a, 9b, 11a, 11d,
11h, 13a, 15a, 17a, 17e, 19a, 21a, 23a, 23e, 25a, 25d, 25g,
25j, 29a, and 31 (if applicable).
•
Part VII, lines 1a through 1g, 1k, and 2 (if applicable).
Attach a statement to Schedule K-1 that provides this
necessary information and distributive share of amounts that
each partner, shareholder, and beneficiary will need to compute
their share of the credit related to investment property on their
Form 3468. See the instructions for Form 1065, U.S. Return of
Partnership Income; Form 1120-S, U.S. Income Tax Return for
an S Corporation; Form 1041, U.S. Income Tax Return for
Estates and Trusts; and Schedules K and K-1 for details.
If you reported any unused investment credits allocated from
cooperatives on a Form 3468, Part I, line 1, “Unused Investment
Credit from Cooperatives,” see the reporting instructions for
Schedules K and K-1 of Form 1120-S, Form 1065, or Form 1041.
Note. If you’re electing a payment under section 48D, Part IV; or
electing to transfer a credit under section 48C, Part III; or electing
a payment or transferring under section 48, Part VI, you must
also report the current credit amount for such facility or property
on the applicable total line of Form 3468 and the applicable line
of Form 3800, Part III.
This information and the partner's, shareholder's, or
beneficiary's distributive share of amounts should not
include any investment credits for which an elective
payment election was made under section 48D(d) or a transfer
election was made under section 6418.
If you elected to treat section 48D credit as a payment under
section 48D(d)(2)(A) or elected to transfer section 48C credit or
section 48 credit (or a portion of such credits) under section
6418(c), you must complete all applicable parts and lines of
Form 3468 (including the registration number on line 2a of Part I)
to compute the credit amount with respect to the facility or
property.
You must report any credit amount for a facility or property on
Part III, line 3; Part IV, line 3; or Part VI, line 32 of Form 3468, on
the applicable lines of Form 3800, Part III, and attach both to
your return.
See the Instructions for Form 3800 for determining credits
allowed (in the case of estates and trusts), reporting of elective
payment amount of section 48D credit and transferred amount
and non-transferred amount (if any) of section 48C and section
48 credits on Schedules K and K-1 of Form 1065, Form 1120-S,
and Form 1041.
Applicable Entities
For tax years beginning after 2022, applicable entities as defined
under section 6417(d)(1)(A) that generally don't benefit from
income tax credits can elect to treat the business credit under
sections 48C and 48 as a payment of income tax. Resulting
overpayments may result in refunds.
Applicable entities making the elective payment election for
the investment credits under section 48C or section 48 must file
the following.
•
Form 3468 with any required statements;
•
Form 3800, General Business Credit; and
•
Form 990-T, Exempt Organization Business Income Tax
Return, or other applicable tax return.
For a discussion of what is an applicable entity, see
Applicable entity making elective payment election on IRA 2022
credits in the Instructions for Form 3800. For more information on
elective payment elections under section 6417, see Elective
Payment of Certain Business Credits Under Section 6417 or
Section 48D in the Instructions for Form 3800.
Elective Payment Under Section
48D(d)
For qualified property placed in service after 2022 that is part of
an advanced manufacturing facility, a taxpayer can elect to treat
the credit as a payment against tax. A partnership or S
corporation can elect to receive the credit as a payment. The
following must be filed with your return to make an elective
payment election under section 48D.
•
Form 3468; and
•
Form 3800.
For more information on elective payment elections under
section 48D see Elective Payment of Certain Business Credits
Under Section 6417 or Section 48D in the Instructions for Form
3800.
Credit Transfers
For tax years beginning after 2022, under section 6418, eligible
taxpayers, partnerships, and S corporations can elect to transfer
all or part of the credit figured in Part III and Part VI to an
unrelated third-party buyer in exchange for cash. For more
information on credit transfers, see Transfer of Eligible Credits
Under Section 6418 in the Instructions for Form 3800.
Pre-filing Registration Requirement
For Payments and Transfers
Before you file your tax return, if you intend to make an elective
payment election or transfer election on Form 3800 for the credit
in Part III, IV, or VI, you must complete a pre-filing registration for
each property or facility. To register, go to IRS.gov/Register for
elective payment or transfer of credits. See Pub. 5884, Inflation
Reduction Act (IRA) and CHIPS Act of 2022 (CHIPS) Pre-Filing
Registration Tool. Also see Registering For and Making Elective
Instructions for Form 3468 (2023)
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