Formulaire 3468 Instructions
Instructions pour le formulaire 3468, Crédit à l'investissement
Rév. 2023
Formulaires associés
- Formulaire 3468 - Crédit d'investissement
Department of the Treasury
Internal Revenue Service
2023
Instructions for Form 3468
Investment Credit
Section references are to the Internal Revenue Code unless
otherwise noted.
IRA 2022 provides $10 billion of allocations, directs a
minimum share to section 48C(e) energy communities
census tracts, and expands eligibility to new types of
qualifying advanced energy projects. This credit is figured in
Part III.
Future Developments
For the latest information about developments related to Form
3468 and its instructions, such as legislation enacted after they
Section 48 provides an energy credit for investment in
energy property. This credit amount can be increased by 5
times for projects meeting prevailing wage and
apprenticeship requirements or project requirements,
including energy storage technology property, qualified
biogas property, microgrid controllers property, and clean
hydrogen production facilities elected to be treated as
energy property. This credit is figured in Part VI.
Section 48 also provides 3 bonus credits if certain
conditions are met.
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What’s New
2023 Form 3468. The form has been redesigned to support the
provisions created by the Inflation Reduction Act of 2022 (IRA
2022) and the Creating Helpful Incentives to Produce
Semiconductors Act of 2022 (CHIPS 2022).
Facility Information. Form 3468 and its instructions were
changed to require separate information and computation of
investment tax credit for each facility or property placed in
• The energy credit is increased by up to 10% for
projects meeting certain domestic content requirements
for steel, iron, and manufactured products.
• The energy credit is increased by up to 10% if located
in an energy community.
Tax-exempt and governmental entities. For tax years
beginning after 2022, applicable entities (such as certain
tax-exempt and governmental entities) can elect to treat certain
investment credits as a payment of income tax. See Applicable
Entities, later.
• The energy credit is increased by up to 20% on certain
solar and wind facilities placed in service in connection
with low-income communities.
The energy credit and any increased or bonus amounts are
these increased bonus amounts.
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Transfer of certain investment tax credits. For tax years
beginning after 2022, eligible taxpayers, partnerships, and S
corporations can elect to transfer all or part of the credit amount
otherwise allowed as a general business credit to an unrelated
third-party buyer in exchange for cash. Eligible taxpayers don’t
General Instructions
Purpose of Form
Elective payment for advanced manufacturing investment
credit. For a facility placed in service after 2022, eligible
taxpayers, partnerships, and S corporations can elect to treat
advanced manufacturing investment credit under CHIPS 2022
as a payment of tax. See Elective Payment Under Section
48D(d), later.
Use a separate Form 3468 to enter information and amounts in
the appropriate parts to claim a credit for each investment
property and any unused investment credit amount from
cooperatives.
Complete a separate Form 3468 to claim an investment credit
for each facility or property. You must complete Part I to report
facility or property information and the appropriate part (Part II–
VII) to compute your investment credit for such facility or
property.
Pre-filing registration. The IRS has established a pre-filing
registration process that must be completed prior to electing
payment or transfer of the investment credit figured in Parts III,
Part II—Qualifying Advanced Coal Project Credit, section A;
Part II—Qualifying Gasification Project Credit, section B;
Part III—Qualifying Advanced Energy Project Credit;
Part IV—Advanced Manufacturing Investment Credit;
Part VI—Energy Credit, sections A through N; or
Part VII—Rehabilitation Credit.
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Reminders
Advanced manufacturing investment credit. CHIPS 2022
added a new investment credit equal to 25% of the qualified
investment in any advanced manufacturing facility for the primary
purpose of the manufacturing of semiconductors or
Patrons, including cooperatives that are patrons in other
semiconductor manufacturing equipment under section 48D.
This credit applies to property placed in service after 2022, and,
for any property that construction of which begins prior to 2023,
only to the extent of the basis attributable to the construction,
reconstruction, or erection after August 9, 2022. This credit is
figured in Part IV.
cooperatives, file a separate Form 3468 to enter any unused
qualifying advanced coal project credit, qualifying gasification
project credit, qualifying advanced energy project credit,
advanced manufacturing investment credit, energy credit, or
rehabilitation credits allocated from cooperatives. Enter “Unused
Investment Credit from Cooperatives” on a separate Form 3468,
Part I, line 1, and enter the total unused amounts (if any) on the
applicable part below.
New and modified energy investment credits. IRA 2022
modified and extended the following.
Section 48C provides a tax credit of up to 30% of the
qualified investment in an advanced energy project that
meets the prevailing wage and apprenticeship requirements.
Part II, line 6.
Part III, line 2.
Part IV, line 2.
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Jan 25, 2024
Cat. No. 12277P
Part VI, section N, line 31.
Part VII, line 2.
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At-Risk Limit for Individuals and
Closely Held Corporations
Note. If you are an individual and file electronically, you must
send in a paper Form 8453, U.S. Individual Income Tax
Transmittal for an IRS e-file Return, if attachments are required
for Form 3468.
The cost or basis of property for investment credit purposes may
be limited if you borrowed against the property and are protected
against loss, or if you borrowed money from a person who is
related or who has an interest (other than as a creditor) in the
business activity. The cost or basis must be reduced by the
amount of the nonqualified nonrecourse financing related to the
property as of the close of the tax year in which the property is
placed in service. If, at the close of a tax year following the year
property was placed in service, the nonqualified nonrecourse
financing for any property has increased or decreased, then the
credit base for the property changes accordingly. The changes
may result in an increased credit or a recapture of the credit in
the year of the change. See sections 49 and 465 for details.
Investment Credit Property
Investment credit property is any depreciable or amortizable
property that qualifies for the qualifying advanced coal project
credit, qualifying gasification project credit, qualifying advanced
energy project credit, advanced manufacturing investment credit,
energy credit, or rehabilitation credit.
You can't claim a credit for property that is:
Used mainly outside the United States (except for property
described in section 168(g)(4));
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Recapture of Credit
Used by a governmental unit or foreign person or entity (see
exceptions below);
You may have to refigure the investment credit and recapture all
or a portion of it if:
Used for lodging or in the furnishing of lodging (see section
50(b)(2) for exceptions); or
You dispose of investment credit property before the end of
5 full years after the property was placed in service
(recapture period);
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Certain MACRS business property to the extent it has been
expensed under section 179.
You change the use of the property before the end of the
recapture period so that it no longer qualifies as investment
credit property;
Exceptions
Investment credit property used by a governmental unit or
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The business use of the property decreases before the end
of the recapture period so that it no longer qualifies (in whole
or in part) as investment credit property;
foreign person or entity for a qualified rehabilitated building
leased to that unit, person, or entity; and property used
under a lease with a term of less than 6 months;
Any building to which section 47(d) applies will no longer be
a qualified rehabilitated building when placed in service;
Any property to which section 48(b), 48A(b)(3), 48B(b)(3),
48C(b)(2), or 48D(b)(5) applies will no longer qualify as
investment credit property when placed in service;
Before the end of the recapture period, your proportionate
interest is reduced by more than 1/3 in an S corporation,
partnership, estate, or trust that allocated the cost or basis of
property to you for which you claimed a credit;
You return leased property (on which you claimed a credit)
to the lessor before the end of the recapture period;
A net increase in the amount of nonqualified nonrecourse
financing occurs for any property to which section 49(a)(1)
applied;
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A tax-exempt organization or governmental entity which is
generally unable to claim an investment credit must
complete and attach Form 3468 and Form 3800 to Form
990-T, or other applicable income tax return, to claim a
section 48C credit or section 48 credit for which an election
is made under section 6417 for any tax year. See the
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Qualified Progress Expenditures
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Qualified progress expenditures are those expenditures made
before the property is placed in service and for which the
taxpayer has made an election to treat the expenditures as
progress expenditures. Qualified progress expenditure property
is any property that is being constructed by or for the taxpayer
and which (a) has a normal construction period of 2 years or
more, and (b) it is reasonable to believe that the property will be
new investment credit property in the hands of the taxpayer
when it is placed in service. The placed-in-service requirement
doesn't apply to qualified progress expenditures.
You engage in an applicable transaction, as defined in
section 50(a)(6)(D).
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Exceptions to recapture. Recapture of the investment credit
doesn't apply to any of the following.
1. A transfer due to the death of the taxpayer.
Qualified progress expenditures for:
2. A transfer between spouses or incident to divorce under
section 1041. However, a later disposition by the transferee
is subject to recapture to the same extent as if the transferor
had disposed of the property at the later date.
Self-constructed property means the amount that is properly
chargeable (during the tax year) to a capital account with
respect to that property; or
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Non-self-constructed property means the lesser of (a) the
amount paid (during the tax year) to another person for the
construction of the property; or (b) the amount that
represents the proportion of the overall cost to the taxpayer
of the construction by the other person, which is properly
attributable to that portion of the construction that is
completed during the tax year.
3. A transaction to which section 381(a) applies (relating to
certain acquisitions of the assets of one corporation by
another corporation).
4. A mere change in the form of conducting a trade or
business if:
a. The property is retained as investment credit property in
that trade or business, and
For more information on qualified progress expenditures, see
section 46(d) (as in effect on November 4, 1990). For details on
qualified progress expenditures for the rehabilitation credit, see
section 47(d).
b. The taxpayer retains a substantial interest in that trade
or business.
A mere change in the form of conducting a trade or business
includes a corporation that elects to be an S corporation and a
corporation whose S election is revoked or terminated.
For details on qualified progress expenditures for the
advanced manufacturing investment credit, see section 48D(b)
(5).
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Instructions for Form 3468 (2023)
Any required recapture is reported on Form 4255, Recapture
of Investment Credit. For more information, see the form and
instructions for Form 4255.
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 section 46(g)(4) (as in effect on November 4, 1990),
and related regulations, if you made a withdrawal from a
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CAUTION
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.
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.
Specific Instructions
S Corporations, Partnerships,
Estates, and Trusts
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.
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,
Applicable entities making the elective payment election for
the investment credits under section 48C or section 48 must file
the following.
2. You didn’t elect to treat section 48D credit as a payment
under section 48D(d), or
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.
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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.
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.
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).
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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).
Elective Payment Under Section
48D(d)
Part VII, lines 1a through 1g, 1k, and 2 (if applicable).
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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.
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.
Form 3468; and
Form 3800.
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For more information on elective payment elections under
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.
section 48D see Elective Payment of Certain Business Credits
Under Section 6417 or Section 48D in the Instructions for Form
3800.
Credit Transfers
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.
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.
This information and the partner's, shareholder's, or
beneficiary's distributive share of amounts should not
Pre-filing Registration Requirement
For Payments and Transfers
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CAUTION
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.
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
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
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)
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Instructions for Form 3468 (2023)
Payment and Transfer Elections in the Instructions for Form
Filers Completing Part III
3800.
For an increased tax credit under section 48C, a taxpayer must
meet the prevailing wage and apprenticeship requirements with
respect to any qualified advanced energy project.
Part I—Facility Information
If you’re claiming an investment credit with respect to a facility or
property, use the table below to enter the facility information that
corresponds to your credit(s).
As part of a section 48C(e) application, an applicant must
confirm that it intends to meet the prevailing wage and
apprenticeship requirements by filing the “Initial PWA
Confirmation” statement with the Department of Energy (DOE).
When the taxpayer notifies the DOE that it has placed the project
in service, the taxpayer must also confirm that it met the
prevailing wage and apprenticeship requirements by filing the
“Final PWA Confirmation” statement with the DOE.
If You Are Completing. . . Then Complete Part I . . .
Part II
Lines 1–5, and 14
Lines 1–5, and 8
Lines 1–5, and 14
Part III
Part IV
Part VI
Lines 1–14 (and Line A for credit
figured in section M)
If a taxpayer doesn't provide an Initial and Final PWA
Confirmation statement to the DOE, the taxpayer will be required
to claim the section 48C credit at the 6% credit rate and the
remainder of the section 48C credits allocated to the project will
be forfeited.
Part VII
Lines 1–5, and 14
See Notice 2022-61 and Notice 2023-18 for more detailed
information. Also see Frequently asked questions about the
Act.
Line A
Provisional emissions rate. Indicate that you petitioned the
Secretary for a provisional emissions rate (PER) by checking the
box on Line A of Part I. As part of the process to petition for a
PER, you must have submitted an application to the DOE for an
emissions value that you used to figure your energy credit for a
reporting requirements.
Prevailing wage requirements. In general, the taxpayer must
ensure that laborers and mechanics employed by the taxpayer
(or contractor or subcontractor) in the re-equipping, expansion,
or establishment of a manufacturing facility are paid wages at
rates not less than the prevailing rates for construction,
alteration, or repair of similar character in the locality in which the
project is located, as most recently determined by the Secretary
of Labor.
Line 1
For Part II, Part III, and Part VI filers. Enter a detailed
technical description of the facility or property that is an integral
part of such facility.
See Notice 2022-61 and Notice 2023-18 for more
information.
Apprenticeship requirements. Each taxpayer (or contractor or
subcontractor) who employs four or more workers to perform
construction, alteration, or repair work on a facility must employ
one or more qualified apprentices from a registered
apprenticeship program.
For Part IV filers. Enter a detailed technical description of the
manufacturing process(es) and end product(s) for the advanced
manufacturing investment credit.
For Part VII filers. Enter a detailed description of the
A minimum percentage of the total labor hours of the
construction, alteration, or repair work must be performed by the
qualified apprentices. This percentage is:
rehabilitated building.
Note. If the owner of the facility in Part II, III, IV, VI, or VII is
different from the filer, also include the owner name and taxpayer
identification number in the description.
10% for facilities beginning construction before 2023,
12.5% for facilities beginning construction in 2023, and
15% for facilities beginning construction in 2024 or after.
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Line 2a
Taxpayers (or contractors or subcontractors) must also
If applicable, enter your pre-filing registration number for the
facility or property that you received from the IRS prior to making
an election under section 48D(d), section 6417, or section 6418.
ensure that any applicable ratios of apprentices to
journeyworkers established by the registered apprenticeship
program are met. An exception may apply when a taxpayer (or
contractor or subcontractor) has requested qualified apprentices
from a registered apprenticeship program and no apprentices
are available. See sections 48C(e)(6), 45(b)(8), Notice 2022-61,
and Notice 2023-18 for more detailed information.
Lines 3a and 3b
On line 3a, enter the address of the facility or property. If there is
no address, enter the longitude and latitude coordinates of the
facility or property on line 3b.
Lines 7 and 8. For line 7, check box 7c. For line 8, check
box 8a or 8c, as appropriate.
Lines 7 and 8
Notice 2022-61 explains how filers receive increased tax credit
amounts under section 48C and section 48 by meeting the
prevailing wage and apprenticeship requirements. The notice
also provides guidance for determining the beginning of
construction of a section 48 energy project. See Notice 2022-61,
Filers Completing Part VI
For an increased tax credit under section 48(a)(9)(A)(i), a
taxpayer needs to meet one of the project requirements in an
energy project.
If you are claiming a credit in Part III or Part VI, see
information below about which box to check.
See Notice 2022-61 for more information. Also see
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Instructions for Form 3468 (2023)
Increased Credit Amount Statement
Energy project. An energy project is a project consisting of one
or more energy properties that are part of a single project under
section 48.
If you checked the box on line 7a or 8b to claim an increased tax
credit amount in Part VI, you must also attach a statement for
each facility or property, at the time of filing your return. The
statement should include the following.
A project meets the project requirements if it's any of the
following.
1. It has a maximum net output of less than 1 megawatt of
electrical (as measured in alternating current) or thermal
energy;
1. Your name, taxpayer identification number, the facility
description (including the owner information, if different from
the filer), and, if applicable, the IRS-issued registration
number from Part I, line 2a.
2. Construction began before January 29, 2023; or
3. The energy project meets the prevailing wage and
apprenticeship requirements in sections 48(a)(10)(A) and
(11).
2. For the facility or property that began construction before
January 29, 2023, indicate that you met the continuity
requirement under the physical work test or the 5% safe
harbor to establish the beginning of construction.
Beginning of construction. There are two methods that can
be used to establish that construction of a qualified facility has
started, the physical work test and the 5% safe harbor. Although
both methods can be used, only one method is needed to
establish that construction of a qualified facility has begun.
2022-61, 2022-52 I.R.B. 560, or its successor for more
information.
Physical work test. Under this test, construction of a facility
begins when physical work of a significant nature begins,
provided that the filer maintains a continuous program of
construction.
5% safe harbor. Using this safe harbor, construction of a
facility will be considered as having begun if:
3. For the facility or property that began construction on or
after January 29, 2023, include the following.
a. The applicable wage determinations (as defined below).
b. The wages paid (including any correction payments as
defined in section 45(b)(7)(B)(i)(l)) and hours worked for
each of the laborer or mechanic classifications engaged
in the construction of the facility or property.
c. The number of workers who received correction
payments.
d. The wages paid and hours worked by qualified
apprentices for each of the laborer or mechanic
classifications engaged in the construction of the facility
or property.
1. A taxpayer pays or incurs (within the meaning of
Regulations section 1.461-1(a)(1) and (2)) 5% or more of
the total cost of the facility, and
e. The total labor hours for the construction of the facility or
property by any laborer or mechanic employed by the
taxpayer or any contractor or subcontractor.
2. Thereafter, the taxpayer makes continuous efforts to
complete the facility.
4. A declaration, applicable to the statement and any
accompanying documents, signed by you, or signed by a
person currently authorized to bind you in such matters, in
the following form: “Under penalties of perjury, I declare that
I have examined this statement, including accompanying
documents, and to the best of my knowledge and belief, the
facts presented in support of this statement are true,
correct, and complete.”
Prevailing wage requirements. In general, the taxpayer must
ensure, with respect to any energy project, that laborers and
mechanics employed by the taxpayer or its contractor or
subcontractor (and for the 5-year period beginning on the date
such project is placed in service, the alteration or repair of the
project) are paid the prevailing wages, which includes basic
hourly rate and any fringe benefits rate, established by the
Secretary of Labor when performing construction, alteration, or
repair of a qualified facility, project, or property. See Notice
2022-61 for more information.
Applicable wage determinations. Applicable wage
determinations are the wage listed for a particular classification
of laborer or mechanic for the type of construction and the
geographic area, or other applicable wage as determined by the
Secretary of Labor. See Notice 2022-61 for more information.
Apprenticeship requirements. Each taxpayer (or contractor or
subcontractor) who employs four or more workers to perform
construction, alteration, or repair work on a facility must employ
one or more qualified apprentices from a registered
apprenticeship program.
Line 9
Notice 2023-38 proposes rules for how filers receive a domestic
content bonus credit amount for certain investments in section
48 energy projects. This notice describes certain rules regarding
the domestic content bonus credit requirements, related
recordkeeping, and certification requirements. It also describes a
safe harbor regarding the classification of certain components in
representative types of qualified facilities, energy projects, or
energy storage technologies. See Notice 2023-38, 2023-22
A minimum percentage of the total labor hours of the
construction, alteration, or repair work must be performed by the
qualified apprentices. This percentage is:
12.5% for facilities beginning construction in 2023, and
15% for facilities beginning construction in 2024 or after.
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Taxpayers (or contractors or subcontractors) must also
ensure that any applicable ratios of apprentices to
journeyworkers established by the registered apprenticeship
program are met. An exception may apply when a taxpayer (or
contractor or subcontractor) has requested qualified apprentices
from a registered apprenticeship program and no apprentices
are available. See Notice 2022-61 for more information.
Domestic content bonus credit amount. Section 48(a)(12)
(C) provides a domestic content bonus credit amount for a
section 48 energy project by increasing the energy percentage
provided in section 48(a)(2), by 10% if the domestic content
requirement is met and the requirement in either 2a, 2b, or 2c,
below, is also met.
Lines 7 and 8. For line 7, if you are completing section M,
check box 7c. If completing any other section of Part VI, check
the applicable box.
1. The domestic content requirement is met with respect to
any energy project under Notice 2023-38, if the taxpayer
certified to the Secretary (see Domestic Content
For line 8, check box 8b or 8c, as appropriate.
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Instructions for Form 3468 (2023)
Certification Statement, later) that any steel, iron, or
manufactured product that is a component of the facility
(upon completion of construction) was produced in the
United States. A qualified facility meets the domestic
content requirement if the steel or iron requirements and the
manufacturing products requirements are met. See Notice
2023-38 for definitions and more information.
to the special rule for beginning of construction under section
4.01(2) of Notice 2023-29. See Notice 2023-45, 2023-29 I.R.B.
317.
Notice 2023-47 has information that taxpayers may use to
determine whether they meet certain requirements under the
Statistical Area Category or the Coal Closure Category as
described in Notice 2023-29 to qualify for energy community
bonus credit rates under section 48. See Notice 2023-47,
2. Any of the following requirements is met:
a. The energy project has a maximum net output of less
than 1 megawatt of electrical (as measured in
alternating current or thermal energy);
Energy community bonus credit rate. An energy community
bonus credit rate increase is allowed under section 48(a)(14) for
an energy project eligible for the credit under section 48 that is
placed in service during the tax year within an energy community
(EC Project). For energy property that is part of an EC Project,
the energy percentage of the basis of each energy property
under section 48(a)(2) is increased by 2% if none of the following
requirements are met, and by 10% if any one of the following
requirements is met:
b. Construction of the energy project began before
January 29, 2023; or
c. The energy project meets the prevailing wage and
apprenticeship requirements in sections 48(a)(10)(A)
and (11).
Note. If the domestic content requirement in 2a, 2b, or 2c,
above, is met, the energy percentage provided in section 48(a)
(2) is increased by 2% instead of 10%.
1. The energy project has a maximum net output of less than 1
megawatt of electrical (as measured in alternating current)
or thermal energy;
Line 9. Check the appropriate box on line 9. If you checked
line 9c, you can’t claim the domestic content bonus credit
amount.
2. Construction of the energy project began before January
29, 2023; or
3. The energy project meets the prevailing wage and
apprenticeship requirements in sections 48(a)(10)(A) and
(11).
Domestic Content Certification Statement
If you checked line 9a or 9b to claim a domestic content bonus
credit amount in Part VI, you must also attach a domestic content
certification statement to Form 3468 at the time of filing your
return, for each applicable project. The domestic content
certification statement should include the following.
Energy community categories. Energy community means the
following:
1. A brownfield site as defined in subparagraphs (A), (B), and
(D)(ii)(III) of section 101(39) of the Comprehensive
Environmental Response, Compensation, and Liability Act
of 1980 (42 U.S.C. 9601(39));
1. Your name and taxpayer identification number shown on the
return.
2. A metropolitan statistical or non-metropolitan statistical area
that:
2. The facility description (including the owner information, if
different from the filer) and the IRS-issued registration
number (if applicable) of the applicable project from Part I,
line 2a.
a. Has (or, at any time during the period beginning after
2009, had) .17% or greater direct employment or 25%
or greater local tax revenues related to the extraction,
processing, transport, or storage of coal, oil, or natural
gas (as determined by the Secretary); and
3. A statement that any steel, iron, or manufactured product
that is a component of the facility (upon completion of
construction) was produced in the United States (as
determined under section 661 of Title 49, Code of Federal
Regulations).
b. Has an unemployment rate at or above the national
average unemployment rate for the previous year (as
determined by the Secretary); or
4. A declaration, applicable to the statement and any
accompanying documents, signed by you, or signed by a
person currently authorized to bind you in such matters, in
the following form: “Under penalties of perjury I declare that
I have examined the information contained in this Domestic
Content Certification Statement and to the best of my
knowledge and belief, it is true, correct, and complete.”
3. A census tract, or a census tract directly adjoining to such
census tract in which:
a. After 1999, a coal mine has closed; or
b. After 2009, a coal-fired electric generating unit has been
retired.
Line 10. Check the appropriate box on line 10. If you checked
the box on line 10c, you can’t claim the energy community bonus
credit amount.
Line 10
Notice 2023-29 proposes rules on how filers receive the energy
community bonus credit rate for certain investments in section
48 energy property. The notice describes certain rules for
determining what constitutes an energy community as defined in
section 45(b)(11)(B) and as adopted by section 48(a)(14) and for
determining whether an energy project, or an energy storage
Lines 11 and 12
If you received an allocation and a control number under the
low-income community program, you may increase the amount
of your energy credit for a qualified solar or wind facility
computed in Part VI, sections B, F, I, or L. Only filers who applied
for and received an allocation of environmental justice solar and
wind capacity limitation and properly placed in service a
qualified solar or wind facility are eligible to claim an increased
credit.
Notice 2023-45 clarifies section 5.02(3) of Notice 2023-29
which describes requirements for a brownfield site safe harbor
for projects with a nameplate capacity of not greater than 5
megawatts in alternating current. This notice also describes a
prior modification that was made via an online update pertaining
Notice 2023-17 establishes the program to allocate
environmental justice solar and wind capacity limitation, as
6
Instructions for Form 3468 (2023)
required under section 48(e). This notice also provides initial
program guidance for potential applicants for allocations of
calendar year 2023 capacity limitation. See Notice 2023-17,
appropriate box on line 12 and enter the nameplate capacity or
storage capacity installed in connection with your property.
Line 14
Generally, for purposes of eligibility for and figuring the amount of
the investment credit, a lessor of property may elect to treat the
lessee as having acquired the property. Once the election is
made, the lessee will be entitled to an investment credit for that
property for the tax year in which the property is placed in
service and the lessor will not be entitled to such a credit.
Rev. Proc. 2023-27 provides the process under section 48(e)
to apply for an allocation of environmental justice solar and wind
capacity limitation. See Rev. Proc. 2023-27, 2023-35 I.R.B. 655
and Regs 1.48(e)-1.
Low-income communities bonus credit amount. Section
48(e) provides a low-income community bonus credit for certain
qualified solar and wind facility energy projects by increasing the
energy percentage provided in section 48(a)(2), by either 10% or
20%, depending on the category of the facility.
If the leased property is disposed of or otherwise ceases to
be investment credit property, the property will generally be
subject to the recapture rules for early dispositions.
Energy percentage. The increased energy percentage with
The lessor will provide the lessee with all the information
needed to complete Part VII, lines 1a through 1g, and 1k, if
applicable.
respect to categories of eligible property and limitation is:
Percentage For a . . .
For information on making the election, see section 48(d) (as
in effect on November 4, 1990) and related regulations. For
limitations, see sections 46(e)(3) and 48(d) (as in effect on
November 4, 1990).
Facility that is located in a low-income
10%
community (as defined in section 45D(e))
Facility that is located on Indian land (as
defined in section 2601(2) of the Energy Policy
Act of 1992 (25 U.S.C. 3501(2)))
Line 14b
10%
Enter the lessor's full address on line 14b. Enter the address of
the lessor's principal office or place of business. Include the
suite, room, or other unit number after the street address. If the
post office doesn't deliver mail to the street address and the
lessor has a P.O. box, show the box number instead.
Facility that is part of a qualified low-income
residential building project
20%
20%
Facility that is a qualified low-income economic
benefit project
Do not use the address of the registered agent for the state in
which the lessor is incorporated. For example, if a business is
incorporated in Delaware or Nevada and the lessor's principal
place of business is located in Little Rock, AR, you should enter
the Little Rock address.
Credit reduction. The increase in the credit will not exceed the
amount that bears the same ratio as the environmental justice
solar and wind capacity limitation allocated to such facility, bears
to the total megawatt nameplate capacity of such facility, as
measured in direct current or in the case of wind, alternating
current will be treated as direct current.
If the lessor receives its mail in care of a third party (such as
an accountant or attorney), enter on the street address line “C/O”
followed by the third party's name and street address or P.O. box.
Eligible property and requirements. For purposes of this
Part II—Qualifying Advanced Coal
Project Credit and Qualifying
Gasification Project Credit
increase, eligible energy property includes:
Wind facility property defined in section 45(d)(1) for which
an election was made to treat qualified facilities as energy
property;
•
Solar energy property to generate electricity defined in
section 48(a)(3)(i);
•
•
•
Section A—Qualifying Advanced Coal Project
Credit Under Section 48A
Qualified small wind energy property defined in section
48(a)(3)(vi); and
A qualifying advanced coal project is a project that:
Energy storage technology described in section 48(a)(3)(A)
(ix) installed in connection with the above facility properties.
Uses advanced coal-based generation technology (as
defined in section 48A(f)) to power a new electric generation
unit or to refit or repower an existing electric generation unit
(including an existing natural gas-fired combined cycle unit);
Has fuel input that, when completed, will be at least 75%
coal;
•
The property also has to meet the following eligibility
requirements:
•
•
•
•
1. A maximum net output of less than 5 megawatts as
measured in alternating current; and
Has an electric generation unit or units at the site that will
generate at least 400 megawatts;
2. The facility is one of the following:
Has a majority of the output that is reasonably expected to
be acquired or utilized;
a. Located in a low-income community (as defined in
section 45D(e));
Is to be constructed and operated on a long-term basis
when the taxpayer provides evidence of ownership or
control of a site of sufficient size;
b. On Indian land (as defined in section 2601(2) of the
Energy Policy Act of 1992 (25 U.S.C. 3501(2)));
Will be located in the United States; and
•
•
c. Is part of a qualified low-income residential building
project; or
Includes equipment that separates and sequesters at least
65% (70% in the case of an application for reallocated
credits) of the project's total carbon dioxide emissions for
project applications described in section 48A(d)(2)(A)(ii).
d. A qualified low-income economic benefit project.
Lines 11 and 12. Check the appropriate box on line 11. If you
checked the box on line 11a, 11b, 11c, or 11d, you must enter
the section 48(e) control number on line 11e. Check the
For more information on the new allocation round for section
7
Instructions for Form 3468 (2023)
Section B—Qualifying Gasification Project
Credit Under Section 48B
Basis. The qualified investment for any tax year is the basis of
eligible property placed in service by the taxpayer during the tax
year that is part of a qualifying advanced coal project. Eligible
property is limited to property that can be depreciated or
amortized and that was constructed, reconstructed, or erected
and completed by the taxpayer; or that is acquired by the
taxpayer if the original use of such property commences with the
taxpayer.
A qualifying gasification project is a project that:
Employs gasification technology (as defined in section
48B(c)(2)),
•
•
•
Is carried out by an eligible entity (as defined in section
48B(c)(7)), and
Includes a qualified investment of which an amount not to
exceed $650 million is certified under the qualifying
gasification program as eligible for credit.
Basis reduction for certain financing. If property is financed
in whole or in part by subsidized energy financing or by
tax-exempt private activity bonds, the amount that you can claim
as basis is the basis that would otherwise be allowed multiplied
by a fraction that is 1 reduced by a second fraction, the
numerator of which is that portion of the basis allocable to such
financing or proceeds, and the denominator of which is the basis
of the property.
For example, if the basis of the property is $100,000 and the
portion allocable to such financing or proceeds is $20,000, the
fraction of the basis that you may claim the credit on is 4/5 (that
is, 1 minus $20,000/$100,000).
The total amount of credits that may be allocated under the
qualifying gasification project program may not exceed $600
million.
For more information on the qualifying gasification project and
the qualifying gasification program, see Notice 2009-23,
603.
Basis reduction. If property is financed in whole or in part by
subsidized energy financing or by tax-exempt private activity
bonds, figure the credit by using the basis of such property
reduced under the rules described in Basis reduction for certain
financing, earlier.
Subsidized energy financing means financing provided under
a federal, state, or local program, a principal purpose of which is
to provide subsidized financing for projects designed to
conserve or produce energy.
Line 4a
Line 1a
Enter the qualified investment in qualifying gasification project
property placed in service during the tax year for which credits
were allocated or reallocated after October 3, 2008, and that
includes equipment that separates and sequesters at least 75%
of the project's carbon dioxide emissions. Qualified investment is
the basis of eligible property placed in service during the tax
year that is part of a qualifying gasification project.
Enter the qualified investment in integrated gasification
combined cycle property placed in service during the tax year for
projects described in section 48A(d)(3)(B)(i). Eligible property is
any property that is part of a qualifying advanced coal project
using an integrated gasification combined cycle and is
necessary for the gasification of coal, including any coal
handling and gas separation equipment.
For purposes of this credit, eligible property includes any
property that is part of a qualifying gasification project and
necessary for the gasification technology of such project. The
IRS is required to recapture the benefit of any allocated credit if a
project fails to attain or maintain these carbon dioxide separation
and sequestration requirements. See section 48B(f) and Notice
Integrated gasification combined cycle is an electric
generation unit that produces electricity by converting coal to
synthesis gas, which in turn is used to fuel a combined cycle
plant to produce electricity from both a combustion turbine
(including a combustion turbine/fuel cell hybrid) and a steam
turbine.
Line 2a
Line 5a
Enter the qualified investment in advanced coal-based
generation technology property placed in service during the tax
year for projects described in section 48A(d)(3)(B)(ii). Eligible
property is any property that is part of a qualifying advanced coal
project (defined earlier) not using an integrated gasification
combined cycle.
Enter the qualified investment, other than any amount included in
line 4a, in qualifying gasification project property (defined earlier)
placed in service during the tax year.
Line 6
Patrons, including cooperatives that are patrons in other
cooperatives, enter the unused investment credit from the
qualifying advanced coal project credit or qualifying gasification
project credit allocated from cooperatives. If you are a
cooperative, see the instructions for Form 3800, Part III, line 1a,
for allocating the investment credit to your patrons.
Line 3a
Enter the qualified investment in advanced coal-based
generation technology property placed in service during the tax
year for projects described in section 48A(d)(3)(B)(iii). Eligible
property is any certified property located in the United States
and that is part of a qualifying advanced coal project (defined
earlier) that has equipment that separates and sequesters at
least 65% of the project's total carbon dioxide emissions. This
percentage increases to 70% if the credits are later reallocated
by the IRS.
any unused credits from cooperatives.
TIP
The credit will be recaptured if a project fails to attain or
maintain the carbon dioxide separation and sequestration
requirements. For details, see section 48A(i) and Notice
8
Instructions for Form 3468 (2023)
Was not placed in service prior to being awarded an
allocation of section 48C credits under the section 48(c)
•
Part III—Qualifying Advanced Energy
Project Credit Under Section 48C
Certification. To be eligible for the qualifying advanced energy
project credit, some or all of the qualified investment in the
qualifying advanced energy project must be certified by the IRS
for more information on the certification and program.
See Notice 2023-44 for additional guidance for applicants
seeking section 48C credit allocations in the qualifying advanced
energy project credit allocation program under IRA 2022. See
Qualifying advanced energy project means a project that:
Re-equips, expands, or establishes an industrial or a
manufacturing facility for the production or recycling of
specified advanced energy property;
•
Re-equips any industrial or manufacturing facility, with
equipment designed to reduce greenhouse gas emissions
by at least 20% through the installation of:
•
• Low- or zero-carbon process heat systems;
• Carbon capture, transport, utilization, and storage
systems;
Line 1a
• Energy efficiency and reduction in waste from
industrial processes; or
Enter the qualified investment in qualifying advanced energy
project property placed in service during the tax year. Qualified
investment is the basis of eligible property placed in service
during the tax year that is part of a qualifying advanced energy
project.
• Any other industrial technology designed to reduce
greenhouse gas emissions, as determined by the
Secretary;
Re-equips, expands or establishes an industrial facility for
the processing, refining or recycling of critical materials (as
defined in section 7002(a) of the Energy Act of 2020);
The Secretary has certified per section 48C(e)(3) that part
or all of the qualified investment in the qualifying advanced
energy project is eligible for a section 48C credit; and
The project does not include any portion of a project for the
production of any property that is used in the refining or
blending of any transportation fuels (other than renewable
fuels).
•
•
•
Line 1b
If you met the prevailing wage and apprenticeship requirements
described earlier, and the certification for prevailing wage and
apprenticeship requirements was met, as part of the 48C(e)
application per Notice 2023-18, section 5.07, then enter 30%.
Otherwise, enter 6%.
Line 1d
Enter your 48C allocation control number for the qualifying
advanced energy property.
Specified advanced energy property. The term specified
advanced energy property means any of the following:
Property designed for use in the production of energy from
the sun, water, wind, geothermal deposits (within the
meaning of section 613(e)(2)), or other renewable
resources;
•
Line 2
Patrons, including cooperatives that are patrons in other
cooperatives, enter the unused investment credit from the
qualifying advanced energy property credit allocated from
cooperatives. If you are a cooperative, see the instructions for
Form 3800, Part III, line 1d, for allocating the investment credit to
your patrons.
Fuel cells, microturbines, or energy storage systems and
components;
•
Electric grid modernization equipment or components;
Property designed to capture, remove, use, or sequester
carbon oxide emissions;
•
•
Equipment designed to refine, electrolyze, or blend any fuel,
chemical, or product which is renewable, or low-carbon and
low-emission;
•
•
•
•
•
any unused credits from cooperatives.
TIP
Property designed to produce energy conservation
technologies (including residential, commercial, and
industrial applications);
Line 3
If you’re a partnership or S corporation requesting an election to
transfer a qualifying advanced energy credit with respect to a
project (or portion of) under section 6418(c), you must report the
total credit amount on line 3 and Form 3800, Part III, line 1d.
Light-, medium-, or heavy-duty electric or fuel cell vehicles,
as well as technologies, components, or materials for such
vehicles, and associated charging or refueling infrastructure;
Hybrid vehicles with a gross vehicle weight rating of not less
than 14,000 pounds as well as technologies, components,
or materials for such vehicles; or
Part IV—Advanced Manufacturing
Investment Credit Under Section 48D
Other advanced energy property designed to reduce
greenhouse gas emissions as may be determined by the
Secretary.
The advanced manufacturing investment credit is equal to 25%
of the qualified investment with respect to any advanced
manufacturing facility of an eligible taxpayer in the tax year.
Eligible property. Eligible property is property that:
Is necessary for the production or recycling of property
described in section 48C(c)(1)(A)(i); re-equipping an
industrial or manufacturing facility described in section
48C(c)(1)(A)(ii); or re-equipping, expanding, or establishing
an industrial facility described in section 48C(c)(1)(A)(iii);
Which depreciation or amortization is allowable;
•
Eligible taxpayer. An eligible taxpayer is a taxpayer who isn't a
foreign entity of concern (as defined in section 9901(6) of P. L.
116-283), and hasn't made an applicable transaction (as defined
in section 50(a)) during the tax year.
Qualified investment. The qualified investment for any
advanced manufacturing facility is the basis of any qualified
property placed in service by the taxpayer during the tax year
that is part of an advanced manufacturing facility.
•
•
Is tangible personal property or other tangible property (not
including a building or its structural components), but only if
the property is used as an integral part of the qualifying
advanced energy project; and
Advanced manufacturing facility. Advanced manufacturing
facility means a facility whose primary purpose is the
9
Instructions for Form 3468 (2023)
manufacturing of semiconductors or semiconductor
manufacturing equipment.
Energy storage technology property.
Qualified biogas property.
•
•
•
•
Microgrid controllers property.
Qualified property. Qualified property includes any building or
Qualified investment credit facility treated as energy
property under section 48(a)(5).
its structural components and all of the following.
Property that is tangible property.
•
•
•
Clean hydrogen production facility treated as energy
property under section 48(a)(15).
•
Property that is allowed depreciation or amortization.
Property that is constructed, reconstructed, or erected by
the taxpayer or acquired by the taxpayer if the original use of
the property commences with the taxpayer.
Property that is integral to the operation of the advanced
manufacturing facility.
Property requirements. To qualify as energy property as
defined in section 48(a)(3), it must:
•
1. Meet the performance and quality standards, if any, that
have been prescribed by regulations and are in effect at the
time the property is acquired;
Exception. Qualified property doesn't include a building or a
portion of a building used for offices, administrative services, or
other functions unrelated to manufacturing.
2. Be property for which depreciation (or amortization in lieu of
depreciation) is allowable; and
Coordination with rehabilitation credit. The qualified
investment with respect to any advanced manufacturing facility
for any tax year can’t include the portion of the basis of any
property that is attributable to qualified rehabilitation
expenditures (as defined in section 47(c)(2)).
3. Be property either:
a. The construction, reconstruction, or erection of which is
completed by the taxpayer; or
b. Acquired by the taxpayer if the original use of such
property commences with the taxpayer.
Certain progress expenditure rules made applicable. Rules
similar to the rules of section 46(c)(4) and 46(d) (as in effect on
the day before the date of the enactment of P.L. 101-158) apply
for purposes of the advanced manufacturing investment credit.
Energy property doesn’t include any property that is part of a
production credit under section 45 for the tax year or any prior
tax year.
Energy property doesn't include any property acquired before
February 14, 2008, or to the extent of basis attributable to
construction, reconstruction, or erection before February 14,
2008, that is public utility property, as defined by section 46(f)(5)
(as in effect on November 4, 1990), and related regulations.
Line 1b
Enter the basis in qualified property as part of the advanced
manufacturing facility (defined above) placed in service during
the tax year.
The basis of property placed in service during the tax
You must reduce the basis of energy property by 50% of the
year, but the construction of which began prior to 2023,
!
energy credit determined.
CAUTION
includes the portion of basis attributable to the
construction, reconstruction, or erection after August 9, 2022.
You must reduce the basis of energy property used for
figuring the credit by any amount attributable to qualified
rehabilitation expenditures.
Line 2
Patrons, including cooperatives that are patrons in other
cooperatives, enter the unused investment credit from the
advanced manufacturing investment credit allocated from
cooperatives. If you are a cooperative, see the instructions for
Form 3800, Part III, line 1o, for allocating the investment credit to
your patrons.
Basis reduction. If energy property (acquired before 2009, or
to the extent of its basis attributable to construction,
reconstruction, or erection before 2009) is financed in whole or in
part by subsidized energy financing or by tax-exempt private
activity bonds, reduce the basis of such property under the rules
For energy property which was constructed, reconstructed, or
erected after August 16, 2022, see the instructions for section N
to reduce the amount of the credit with respect to any facility for
tax-exempt bonds.
any unused credits from cooperatives.
TIP
Line 3
Coordination with Department of Treasury grants. In the
case of any property where the Secretary makes a grant under
section 1603 of the American Recovery and Reinvestment Tax
Act of 2009, no credit will be determined under section 48 or
section 45 with respect to the property for the tax year in which
the grant is made or any subsequent tax year.
If you are a partnership or S corporation requesting elective
payment with respect to the advanced manufacturing investment
credit under section 48D(d)(2)(A), you must report the credit
amount on line 3 and Form 3800, Part III, line 1o.
Recapture. If a credit was determined with respect to a
property for any tax year ending before the grant is made:
Part VI—Energy Credit Under Section
48
The tax imposed on the taxpayer for the tax year in which
the grant is made will be increased by the credit amount
allowed under section 38,
•
•
•
The energy credit for the tax year is the energy percentage of the
basis of each energy property placed in service during the tax
year. The energy properties include the following.
The general business carryforwards under section 39 will be
adjusted to recapture the portion of the credit that was not
allowed, and
Geothermal energy property.
•
Solar energy property to generate electricity, or solar energy
property to illuminate.
•
The amount of the grant will be determined without regard to
any reduction in the basis of the property by the credit.
Qualified fuel cell property.
•
•
•
•
•
•
Treatment of grants. Any grant will not be included in the
gross income or alternative minimum taxable income of the
taxpayer, but will be taken into account in determining the basis
of the property to which the grant relates, except that the basis of
Qualified microturbine property.
Combined heat and power system property.
Qualified small wind energy property.
Waste energy recovery property.
Geothermal heat pump system property.
10
Instructions for Form 3468 (2023)
such property will be reduced under section 50(c) in the same
manner as a credit allowed.
If the facility or property did not meet the requirements for the
domestic content bonus credit, leave line 1d blank, skip line 1e,
and go to line 1f.
Interconnection property. For purposes of determining the
energy credit, energy property shall include amounts paid or
incurred by the taxpayer for qualified interconnection property in
connection with the installation of energy property placed in
service during the tax year that:
Line 1f
Enter your applicable energy community bonus credit
line 10, for more information.
Has a maximum net output of not greater than 5 megawatts
(as measured in alternating current), to provide for the
transmission or distribution of the electricity produced or
stored by such property; and
•
If the facility or property was not placed in service within an
energy community, leave line 1f blank, skip line 1g, and go to
line 2.
Are properly chargeable to the capital account of the
taxpayer.
•
Qualified interconnection property. Qualified
Section B—Solar Energy Credit
interconnection property is, with respect to an energy project that
isn't a microgrid controller, any tangible property that:
Solar energy. Solar energy property is property that has the
Is part of an addition, modification, or upgrade to a
transmission or distribution system that is required at or
beyond the point at which the energy project interconnects
to such transmission or distribution system in order to
accommodate such interconnection;
•
following.
1. Equipment that uses solar energy to illuminate the inside of
a structure using fiber-optic distributed sunlight.
2. Electrochromic glass that uses electricity to change its light
transmittance properties in order to heat or cool a structure.
Is either constructed, reconstructed, or erected by the
taxpayer, or that the cost with respect to the construction,
reconstruction, or erection of such property is paid or
incurred by the taxpayer; and
•
•
3. Equipment that uses solar energy to:
a. Generate electricity,
The original use, pursuant to an interconnection agreement,
commences with a utility.
b. Heat or cool (or provide hot water for use in) a structure,
or
Interconnection agreement. Interconnection agreement
means an agreement with a utility for the purposes of
interconnecting the energy property owned by the taxpayer to
the transmission or distribution system of the utility.
Utility. For the purposes of section 48(a)(8), utility means the
owner or operator of an electrical transmission or distribution
system that is subject to the regulatory authority of any the
following.
c. Provide solar process heat (but not to heat a swimming
pool).
Line 3b
Enter your applicable energy percentage. See Increased Credit
Amount Statement, in Part I, lines 7 and 8, earlier, for more
information.
A state or political subdivision thereof.
•
•
•
Any agency or instrumentality of the United States.
A public service or public utility commission or other similar
body of any state or political subdivision thereof.
The governing or ratemaking body of an electric
cooperative.
Line 3d
•
Enter your applicable low-income community bonus credit
percentage in connection with your solar energy facility.
However, if you checked the box for Part I, line 11f; or Part I,
line 12e (in relation to Part I, lines 11a, 11b, 11c, or 11d) you do
not qualify for the low-income community bonus credit in
connection with a solar energy facility. Enter -0- (zero) on lines
3d and 3j, and go to line 3k.
Special rule for interconnection property. In the case of
expenses paid or incurred for interconnection property, amounts
otherwise chargeable to a capital account with respect to such
expenses will be reduced under rules similar to the rules of
section 50(c).
Section A—Geothermal Energy Credit
Geothermal energy. Geothermal energy property is used to
produce, distribute, or use energy derived from a geothermal
deposit (within the meaning of section 613(e)(2)). For electricity
produced by geothermal power, equipment qualifies only up to,
but not including, the electrical transmission stage.
lines 11 and 12, earlier, for more information.
Line 3k
Enter the applicable domestic content bonus credit percentage.
earlier, for more information.
Line 1b
Enter your applicable energy percentage. See Increased Credit
Amount Statement, in Part I, lines 7 and 8, earlier, for more
information.
If the facility or property did not meet the requirements for the
domestic content bonus credit, leave line 3k blank, skip line 3l,
and go to line 3m.
Line 1d
Line 3m
Enter your applicable domestic content bonus credit percentage.
earlier, for more information.
Enter the applicable energy community bonus credit percentage.
earlier, for more information.
11
Instructions for Form 3468 (2023)
If the facility or property was not placed in service within an
energy community, leave line 3m blank, skip line 3n, and go to
line 4.
If the facility or property did not meet the requirements for the
domestic content bonus credit, leave line 5i blank, skip line 5j,
and go to line 5l.
Section C—Qualified Fuel Cell Property
Line 5l
Qualified fuel cell property. Qualified fuel cell property is a
fuel cell power plant that has a nameplate capacity of at least 0.5
kilowatts (1 kilowatt in the case of a fuel cell plant with a linear
generator assembly) of electricity using an electrochemical or
electromechanical process and has electricity-only generation
efficiency greater than 30%. See section 48(c)(1) for further
details.
Fuel cell power plant. Fuel cell power plant means an
integrated system comprised of a fuel cell stack assembly or
linear generator assembly, and associated balance of plant
components that converts a fuel into electricity using
electrochemical or electromechanical means.
Linear generator assembly. Linear generator assembly
doesn’t include any assembly that contains rotating parts.
Enter the applicable energy community bonus credit percentage.
earlier, for more information.
If the facility or property was not placed in service within an
energy community, leave line 5l blank, skip line 5m, and go to
line 5n.
Line 5o
Enter the applicable number of kilowatts of capacity attributable
to the basis on line 5f. This entry must be a whole number.
Section D—Qualified Microturbine Property
Qualified fuel cell property that uses electromechanical
process or a fuel cell power plant that is comprised of a
!
Qualified microturbine property. Qualified microturbine
property is a stationary microturbine power plant that has a
nameplate capacity of less than 2,000 kilowatts and has an
electricity-only generation efficiency of not less than 26% at
International Standard Organization conditions. See section
48(c)(2) for further details.
CAUTION
linear generator assembly are for property placed in
service after 2022.
Line 5a
Stationary microturbine power plant. Stationary
microturbine power plant means an integrated system comprised
of a gas turbine engine, a combustor, a recuperator or
regenerator, a generator or alternator, and associated balance of
plant components that converts a fuel into electricity and thermal
energy. It also includes all secondary components located
between the existing infrastructure for fuel delivery and the
existing infrastructure for power distribution, including equipment
and controls for meeting relevant power standards, such as
voltage, frequency, and power factors.
Enter the basis, attributable to periods after 2005 and before
October 4, 2008, of any qualified fuel cell property placed in
service during the tax year, if the property was acquired after
2005 and before October 4, 2008, or to the extent of basis
attributable to construction, reconstruction, or erection by the
taxpayer after 2005 and before October 4, 2008.
Line 5c
Enter the applicable number of kilowatts of capacity attributable
to the basis on line 5a. This entry must be a whole number.
Line 7a
Line 5f
Enter the basis, attributable to periods after 2005, of any
qualified microturbine property placed in service during the tax
year, if the property was acquired after 2005, or to the extent of
basis attributable to construction, reconstruction, or erection by
the taxpayer after 2005.
Enter the basis, attributable to periods after October 3, 2008,
and the construction of which began before 2021 or after 2022,
of any qualified fuel cell property placed in service during the tax
year.
Line 7b
construction, earlier.
Enter your applicable energy percentage. See Increased Credit
Amount Statement, in Part I, lines 7 and 8, earlier, for more
information.
Basis is attributable to periods after October 3, 2008, if
the property was acquired after October 3, 2008, or to
!
CAUTION
the extent of basis attributable to construction,
reconstruction, or erection by the taxpayer after October 3, 2008.
Line 7d
Enter your applicable domestic content bonus credit percentage.
earlier, for more information.
Line 5g
Enter your applicable energy percentage. See Increased Credit
Amount Statement, in Part I, lines 7 and 8, earlier, for more
information.
If the facility or property did not meet the requirements for the
domestic content bonus credit, leave line 7d blank, skip line 7e,
and go to line 7g.
Line 5i
Line 7g
Enter your applicable domestic content bonus credit percentage.
earlier, for more information.
Enter the applicable energy community bonus credit percentage.
earlier, for more information.
12
Instructions for Form 3468 (2023)
If the facility or property was not placed in service within an
energy community, leave line 7g blank, skip line 7h, and go to
line 7i.
Combined heat and power system property doesn't include
property used to transport the energy source to the facility or to
distribute energy produced by the facility.
Biomass systems. Systems designed to use biomass for at
least 90% of the energy source are eligible for a credit that is
reduced in proportion to the degree to which the system fails to
meet the efficiency standard. For more information, see section
48(c)(3)(D).
Line 7j
Enter the applicable number of kilowatts of capacity attributable
to the basis on line 7a. This entry must be a whole number.
Section E—Combined Heat and Power System
Property
Combined heat and power system property. Combined heat
and power system property means property comprising a system
that:
Line 9d
Enter your applicable energy percentage. See Increased Credit
Amount Statement, in Part I, lines 7 and 8, earlier, for more
information.
1. Uses the same energy source for the simultaneous or
sequential generation of electrical power, mechanical shaft
power, or both; in combination with the generation of steam
or other forms of useful thermal energy (including heating
and cooling applications); and
Line 9f
Enter your applicable domestic content bonus credit percentage.
earlier, for more information.
2. Has an energy efficiency percentage determined on a
British thermal unit (BTU) basis over 60% and it produces:
If the facility or property did not meet the requirements for the
domestic content bonus credit, leave line 9f blank, skip line 9g,
and go to line 9h.
a. At least 20% (determined on a BTU basis) of its total
useful energy in the form of thermal energy that isn't
used to produce electrical and/or mechanical power,
and
Line 9h
b. At least 20% (determined on a BTU basis) of its total
useful energy in the form of electrical and/or mechanical
power.
Enter the applicable energy community bonus credit percentage.
earlier, for more information.
For details, see section 48(c)(3).
If the facility or property was not placed in service within an
energy community, leave line 9h blank, skip line 9i, and go to
line 10.
Taxpayers cannot take a credit for both combined heat
and power system property and waste energy recovery
!
CAUTION
property for the same property. Taxpayers must elect not
to treat such property as combined heat and power system
property for section 48 purposes.
Section F—Qualified Small Wind Energy
Property
Limitation. In the case of combined heat and power system
property with an electrical capacity in excess of the applicable
capacity placed in service during the tax year, the credit for that
year shall be equal to the amount that bears the same ratio to the
credit as the applicable capacity bears to the capacity of such
property.
Qualified small wind energy property. Qualified small wind
energy property means property that uses a qualifying small
wind turbine to generate electricity. For this purpose, a qualifying
small wind turbine means a wind turbine that has a nameplate
capacity of not more than 100 kilowatts. For details, see section
48(c)(4). In addition, for small wind energy property acquired (or
placed in service in the case of property constructed,
reconstructed, or erected) after February 2, 2015, see Notice
2015-31 I.R.B. 133, for performance and quality standards that
small wind energy property must meet to qualify for the energy
credit.
Applicable capacity. Applicable capacity means the
following:
15 megawatts;
•
A mechanical energy capacity of more than 20,000
horsepower; or
•
An equivalent combination of electrical and mechanical
•
energy capacities.
Line 11a
Maximum capacity. Combined heat and power system
property shall not include any property comprising a system if:
Enter the basis, attributable to periods after October 3, 2008,
and before 2009, of any qualified small wind energy property
placed in service during the tax year, if the property was
acquired after October 3, 2008, and before 2009, or to the extent
of basis attributable to construction, reconstruction, or erection
by the taxpayer after October 3, 2008, and before 2009.
The system has a capacity of more than 50 megawatts,
A mechanical energy capacity of more than 67,000
horsepower, or
•
•
An equivalent combination of electrical and mechanical
energy capacities.
•
Energy efficiency percentage. The energy efficiency
percentage of a combined heat and power system property is
the fraction of which the numerator is the total useful electrical,
thermal, and mechanical power produced by the system at
normal operating rates (and expected to be consumed in its
normal application), and the denominator is the lower heating
value of the fuel sources for the system.
Line 11d
Enter the basis, attributable to periods after 2008 and the
construction of which began before 2021 or after 2022, of any
qualified small wind energy property placed in service during the
tax year, if the property was acquired by the taxpayer or the basis
is attributable to construction, reconstruction, or erection by the
taxpayer.
13
Instructions for Form 3468 (2023)
Line 13d
Enter your applicable domestic content bonus credit percentage.
earlier, for more information.
Line 11e
Enter your applicable energy percentage. See Increased Credit
Amount Statement, in Part I, lines 7 and 8, earlier, for more
information.
If the facility or property did not meet the requirements for the
domestic content bonus credit, leave line 13d blank, skip
line 13e, and go to line 13f.
Line 11g
Line 13f
Enter your applicable low-income community bonus credit
percentage in connection with your small wind energy facility.
However, if you checked the box for Part I, line 11f, or you
checked the box for Part I, line 12e (in relation to Part I, lines 11a,
11b, 11c, or 11d) you don't qualify for the low-income community
business credit in connection with a small energy wind facility.
Enter -0- (zero) on lines 11g and 11m, and go to line 11n.
Enter the applicable energy community bonus credit percentage.
earlier, for more information.
If the facility or property was not placed in service within an
energy community, leave line 13f blank, skip line 13g, and go to
line 14.
for more information.
Section H—Geothermal Heat Pump Systems
Geothermal heat pump systems. Geothermal heat pump
systems constitute equipment that uses the ground or ground
water as a thermal energy source to heat a structure or as a
thermal energy sink to cool a structure. For details, see section
48(a)(3)(A)(vii).
Line 11n
Enter your applicable domestic content bonus credit percentage.
earlier, for more information.
Line 15b
If the facility or property did not meet the requirements for the
domestic content bonus credit, leave line 11n blank, skip
line 11o, and go to line 11p.
Enter your applicable energy percentage. See Increased Credit
Amount Statement, in Part I, lines 7 and 8, earlier, for more
information.
Line 11p
Line 15d
Enter the applicable energy community bonus credit percentage.
earlier, for more information.
Enter your applicable domestic content bonus credit percentage.
earlier, for more information.
If the facility or property was not placed in service within an
energy community, leave line 11p blank, skip line 11q, and go to
line 12.
If the facility or property did not meet the requirements for the
domestic content bonus credit, leave line 15d blank, skip
line 15e, and go to line 15f.
Section G—Waste Energy Recovery Property
Line 15f
Waste energy recovery property. Qualified waste energy
recovery property means property that generates electricity
solely from heat from buildings or equipment if the primary
purpose of such building or equipment is not the generation of
electricity. The term “waste energy recovery property” shall not
include any property that has a capacity in excess of 50
megawatts. For details, see section 48(c)(5).
Enter the applicable energy community bonus credit percentage.
earlier, for more information.
If the facility or property was not placed in service within an
energy community, leave line 15f blank, skip line 15g, and go to
line 16.
Taxpayers cannot take a credit for both combined heat
and power system property and waste energy recovery
!
CAUTION
property for the same property. Taxpayers must elect not
Section I—Energy Storage Technology Property
Energy storage technology. Energy storage technology is:
to treat such property as combined heat and power system
property for section 48 purposes.
Property (other than property primarily used in the
transportation of goods or individuals and not for the
production of electricity) that receives, stores, and delivers
energy for conversion to electricity (or, in the case of
hydrogen, stores energy), and has a nameplate capacity of
not less than 5 kilowatt hours; and
•
Note. The transitional rules of section 48(m) (as in effect on
November 4, 1990) apply to waste energy recovery property for
periods after 2020.
Thermal energy storage property.
Line 13b
•
Modifications of certain property. In the case of any
energy storage technology property described above that was
either (1) placed in service before August 16, 2022, and that has
a capacity of less than 5 kilowatt hours and is modified to where
the property has a nameplate capacity of at least 5 kilowatt
Enter your applicable energy percentage. See Increased Credit
Amount Statement, in Part I, lines 7 and 8, earlier, for more
information.
14
Instructions for Form 3468 (2023)
hours; or (2) is modified in a manner that increases the
nameplate capacity to at least 5 kilowatt hours, the modified
property will be treated as energy storage technology property,
except for the treatment of the basis of the existing property prior
to the modification.
1. Converts biomass (as defined in section 45K(c)(3), as in
effect on August 16, 2022), into a gas that:
a. Consists of not less than 52% methane by volume, or
b. Is concentrated by such system into a gas that consists
of not less than 52% methane, and
Thermal energy storage property. Thermal energy storage
property is property comprising a system that:
2. Captures such gas for sale or productive use, and not for
disposal by means of combustion.
Is directly connected to a heating, ventilation, or air
conditioning system;
•
•
•
Removes heat from, or adds heat to, a storage medium for
subsequent use; and
Qualified biogas property includes any property, described
above, that is part of a system that cleans or conditions gas.
Provides energy for the heating or cooling of the interior of a
residential or commercial building.
Line 19a
Thermal energy storage property doesn’t include:
A swimming pool,
Enter the basis of any qualified biogas energy property placed in
service during the tax year, to the extent of basis attributable to
construction, reconstruction, or erection by the taxpayer.
•
•
•
Combined heat and power system property, or
A building or its structural components.
Line 17a
Line 19b
Enter your applicable energy percentage. See Increased Credit
Amount Statement, in Part I, lines 7 and 8, earlier, for more
information.
Enter the basis of any energy storage technology property
placed in service during the tax year, to the extent of basis
attributable to construction, reconstruction, or erection by the
taxpayer.
Line 19d
Line 17b
Enter your applicable domestic content bonus credit percentage.
earlier, for more information.
Enter your applicable energy percentage. See Increased Credit
Amount Statement, in Part I, lines 7 and 8, earlier, for more
information.
If the facility or property did not meet the requirements for the
domestic content bonus credit, leave line 19d blank, skip
line 19e, and go to line 19f.
Line 17d
Enter your applicable low-income community bonus credit
percentage in connection with your solar or wind facility.
However, if you checked the box for Part I, line 11f, or you
checked the box for Part I, line 12e (in relation to Part I, lines 11a,
11b, 11c, or 11d) you don't qualify for the low-income community
business credit in connection to a solar or wind energy facility.
Enter -0- (zero) on lines 17d and 17j and go to line 17k.
Line 19f
Enter the applicable energy community bonus credit percentage.
earlier, for more information.
If the facility or property was not placed in service within an
energy community, leave line 19f blank, skip line 19g, and go to
line 20.
described in Part I, lines 11 and 12, earlier, for more information.
Section K—Microgrid Controllers Property
Line 17k
Microgrid controller. Microgrid controller means equipment
that is:
Enter your applicable domestic content bonus credit percentage.
earlier, for more information.
Part of a qualified microgrid, and
•
Designed and used to monitor and control the energy
resources and loads on such microgrid.
•
If the facility or property did not meet the requirements for the
domestic content bonus credit, leave line 17k blank, skip line 17l,
and go to line 17m.
Qualified microgrid. A qualified microgrid is an electrical
system that:
1. Includes equipment that is capable of generating not less
than 4 kilowatts and not more than 20 megawatts of
electricity;
Line 17m
Enter the applicable energy community bonus credit percentage.
earlier, for more information.
2. Is capable of operating:
a. In connection with the electrical grid and as a single
controllable entity with respect to such grid,
If the facility or property was not placed in service within an
energy community, leave line 17m blank, skip line 17n, and go to
line 18.
b. Independently (and disconnected) from such grid, and
3. Is not part of a bulk-power system (as defined in section 215
of the Federal Power Act (16 U.S.C. 824o)).
Section J—Qualified Biogas Property
Qualified biogas property. Qualified biogas property is
property comprising a system that:
15
Instructions for Form 3468 (2023)
f. Trash facility under section 45(d)(7).
Line 21a
g. Qualified hydropower facility under section 45(d)(9).
Enter the basis of any qualified microgrid controller property
placed in service during the tax year, to the extent of basis
attributable to construction, reconstruction, or erection by the
taxpayer.
h. Marine and hydrokinetic renewable energy facility under
section 45(d)(11).
2021-03 I.R.B. 479, for more information on beginning
of construction requirements applied to offshore and
federal land projects.
Line 21b
Enter your applicable energy percentage. See Increased Credit
Amount Statement, in Part I, lines 7 and 8, earlier, for more
information.
2. No credit has been allowed under section 45 for that facility
(see Note below); and
3. An irrevocable election was made to treat the facility as
energy property.
Line 21d
Note. If a taxpayer retrofits an energy property that previously
received a credit under section 45 by meeting the 80/20 Rule
the taxpayer may claim an investment tax credit based on its
investment. However, if the energy property is within the
recapture period for the section 45 credit, the taxpayer may have
to recapture all or part of such section 45 credit accordingly.
Qualified offshore wind facility. For purposes of section
48(a)(5), qualified offshore wind facility means a qualified facility
(within the meaning of section 45(d)(1)) that is located in the
inland navigable waters of the United States or in the coastal
waters of the United States.
Enter your applicable domestic content bonus credit percentage.
earlier, for more information.
If the facility or property did not meet the requirements for the
domestic content bonus credit, leave line 21d blank, skip
line 21e, and go to line 21f.
Line 21f
Enter the applicable energy community bonus credit percentage.
earlier, for more information.
Section 48(a)(5) Election Statement
If the facility or property was not placed in service within an
energy community, leave line 21f blank, skip line 21g, and go to
line 22.
If you are electing to treat a qualified investment credit facility as
energy property, you must attach an election statement to Form
3468 for each qualified facility. The election statement must
include the following information.
Section L—Qualified Investment Credit Facility
Property
1. Your name and taxpayer identification number shown on the
return.
Qualified investment credit facility property. Qualified
investment credit facility property is property:
2. For each qualified facility, include the following:
That is tangible personal property or other tangible property
(not including a building or its structural components), but
only if the property is used as an integral part of the qualified
investment credit facility;
•
a. The facility description (including the owner information,
if different from the filer) and the IRS-issued registration
number (if applicable) of the qualified facility from Part I,
line 2a.
That is constructed, reconstructed, erected, or acquired by
the taxpayer;
•
•
•
b. An accounting of your basis in the energy property.
With respect to which depreciation or amortization is
allowable; and
c. A depreciation schedule reflecting your remaining basis
in the energy property after the energy credit is claimed.
For which the original use begins with the taxpayer.
See section 48(a)(5) for details.
3. A statement that you haven’t and won’t claim a section 1603
grant for new investment in the property for which you are
claiming the energy credit.
Note. The transitional rules of section 48(m) (as in effect on
November 4, 1990) apply to offshore wind facilities for periods
after 2016. Under the transitional rules of section 48(m) (as in
effect on November 4, 1990), the phaseout of the section 48
credit provided for other types of qualified investment credit
facilities under section 48(a)(5)(E), does not apply to qualified
offshore wind facilities.
4. A declaration, applicable to the statement and any
accompanying documents, signed by you, or signed by a
person currently authorized to bind you in such matters that
states the following: “Under penalties of perjury, I declare
that I have examined this statement, including
accompanying documents, and to the best of my knowledge
and belief, the facts presented in support of this statement
are true, correct, and complete.”
Qualified investment credit facility. A qualified investment
credit facility is a facility that:
1. Is one of the following qualified facilities that is placed in
Line 23b
a. Wind facility under section 45(d)(1).
Enter your applicable energy percentage. See Increased Credit
Amount Statement, in Part I, lines 7 and 8, earlier, for more
information.
b. Closed-loop biomass facility under section 45(d)(2).
c. Open-loop biomass facility under section 45(d)(3).
d. Geothermal or solar energy facility under section 45(d)
(4).
e. Landfill gas facility under section 45(d)(6).
16
Instructions for Form 3468 (2023)
An unrelated third party has verified (in such form or manner
as the Secretary may prescribe) that such facility produces
hydrogen through a process that results in lifecycle
greenhouse gas emissions that are consistent with the
hydrogen that the facility was designed and expected to
produce as specified in the Section 48(a)(15) Election
Statement, described below.
•
Line 23d
Enter your applicable low-income community bonus credit
percentage in connection with your wind facility. However, if you
checked the box for Part I, line 11f, or you checked the box for
Part I, line 12e (in relation to Part I, lines 11a, 11b, 11c, or 11d)
you don't qualify for the low-income community bonus credit in
connection with a wind facility. Enter -0- (zero) on lines 23d and
23j and go to line 23k.
Qualified clean hydrogen. Qualified clean hydrogen means
hydrogen that is produced through a process that results in a
lifecycle greenhouse gas emissions rate of not greater than 4
kilograms of CO2e per kilogram of hydrogen.
lines 11 and 12, earlier, for more information.
Qualified clean hydrogen also requires the following.
Hydrogen is produced in the United States (as defined in
section 638(1)) or a territory of the United States (as defined
in section 638(2)).
•
Line 23k
Enter your applicable domestic content bonus credit percentage.
earlier, for more information.
Hydrogen is produced in the ordinary course of a trade or
business of the taxpayer.
•
Hydrogen is produced for sale or use.
•
•
The production and sale or use of such hydrogen is verified
by an unrelated party.
If the facility or property did not meet the requirements for the
domestic content bonus credit, leave line 23k blank, skip line 23l,
and go to line 23m.
Section 48(a)(15) Election Statement
Line 23m
If you are electing to treat qualified property that is part of a
specified clean hydrogen production facility as energy property,
you must attach a statement to Form 3468 for each qualified
facility. The election statement must include the following
information.
Enter the applicable energy community bonus credit percentage.
earlier, for more information.
If the facility or property was not placed in service within an
energy community, leave line 23m blank, skip line 23n, and go to
line 24.
1. Your name and taxpayer identification number shown on the
return.
2. For each qualified facility, include the following:
Section M—Clean Hydrogen Production
Facilities as Energy Property
Election to treat clean hydrogen production facilities as en-
ergy property. In the case of any qualified property (as defined
in section 48(a)(5)(D)) that is part of a specified clean hydrogen
production facility, such property will be treated as energy
property for purposes of this section, and the energy percentage
with respect to such property is as follows.
a. The facility description (including the owner information,
if different from the filer) and the IRS-issued registration
number (if applicable) of the qualified facility from Part I,
line 2a.
b. The lifecycle greenhouse gas (GHG) emission rate of
the facility for the tax year.
c. A copy of the required verification report and if you are
petitioning for a provisional emissions rate, a copy of the
documentation obtained from the Department of Energy
providing an emissions value.
1.2% in the case of a facility that is designed and reasonably
expected to produce qualified clean hydrogen that is
described in section 45V(b)(2)(A).
•
•
•
•
3. An attestation that the facility produced hydrogen through a
process that results in a lifecycle GHG emissions rate that is
consistent with, or lower than, the lifecycle GHG emissions
rate of the hydrogen that such facility was designed and
expected to produce.
1.5% in the case of a facility that is designed and reasonably
expected to produce qualified clean hydrogen that is
described in section 45V(b)(2)(B).
2% in the case of a facility that is designed and reasonably
expected to produce qualified clean hydrogen that is
described in section 45V(b)(2)(C).
4. A statement that you haven’t and won’t claim a section 45V
or 45Q credit for the facility which you are claiming the
energy credit.
6% in the case of a facility that is designed and reasonably
expected to produce qualified clean hydrogen that is
described in section 45V(b)(2)(D).
5. A declaration, applicable to the statement and any
accompanying documents, signed by you, or signed by a
person currently authorized to bind you in such matters that
states the following: “Under penalties of perjury, I declare
that I have examined this statement, including
Denial of production credit. No credit will be allowed under
section 45V or section 45Q for any tax year with respect to any
specified clean hydrogen production facility or any carbon
capture equipment included at such facility.
Specified clean hydrogen production facility. Specified
clean hydrogen production facility means any qualified clean
hydrogen production facility that meets the following.
accompanying documents, and to the best of my knowledge
and belief, the facts presented in support of this statement
are true, correct, and complete.”
Owned by the taxpayer.
•
•
•
•
•
•
Produces qualified clean hydrogen.
Construction begins before 2033.
Line 25a
Is placed in service after 2022.
No credit has been allowed under section 45V or 45Q.
The taxpayer makes an irrevocable election to treat clean
hydrogen production facility as energy property under
section 48(a)(15).
Enter the basis of property placed in service during the tax year
for the facility that is designed and reasonably expected to
produce, through a process, qualified clean hydrogen that results
in a lifecycle greenhouse gas emission rate no greater than 4
17
Instructions for Form 3468 (2023)
kilograms of CO2e per kilogram of hydrogen and not less than
2.5 kilograms as described in section 45V(b)(2)(A).
by the amount that is the product of the amount so determined
for such year and the lesser of one of the following.
15%, or
•
A fraction, which the numerator is the sum for the tax year
and all prior tax years, of proceeds of an issue of any
obligations the interest on which is exempt from tax under
section 103 and that is used to provide financing for the
qualified facility over the denominator, which is the
aggregate amount of additions to the capital account for the
qualified facility for the tax year and all prior tax years as of
the close of the tax year.
•
Line 25b
Enter your applicable energy percentage. See Increased Credit
Amount Statement, in Part I, lines 7 and 8, earlier, for more
information.
Line 25d
Enter the basis of property placed in service during the tax year
for the facility that is designed and reasonably expected to
produce, through a process, qualified clean hydrogen that results
in a lifecycle greenhouse gas emission rate less than 2.5
kilograms of CO2e per kilogram of hydrogen and not less than
1.5 kilograms as described in section 45V(b)(2)(B).
Note. The credit reduced for tax-exempt bonds, lines 29a
through 29e, applies to construction, reconstruction, or erection
of an energy property which began after August 16, 2022.
Line 31
Patrons, including cooperatives that are patrons in other
cooperatives, enter the unused investment credit from the
energy credit allocated from cooperatives. If you are a
cooperative, see the instructions for Form 3800, Part III, line 4a,
for allocating the investment credit to your patrons.
Line 25e
Enter your applicable energy percentage. See Increased Credit
Amount Statement, in Part I, lines 7 and 8, earlier, for more
information.
any unused credits from cooperatives.
TIP
Line 25g
Enter the basis of property placed in service during the tax year
for the facility that is designed and reasonably expected to
produce, through a process, qualified clean hydrogen that results
in a lifecycle greenhouse gas emission rate less than 1.5
kilograms of CO2e per kilogram of hydrogen and not less than
0.45 kilograms as described in section 45V(b)(2)(C).
Line 32
Elective payment phaseout for applicable entities. If you
are making an elective payment election for a facility whose
construction began in calendar year 2024, and the facility does
not satisfy the rules of section 48(a)(12)(B) or does not have a
maximum net output of less than 1 megawatt (as measured in
alternating current), multiply line 30 by 90% (0.90) and enter the
amount on line 32.
Line 25h
Exception to elective payment phaseout. For facilities
whose construction began during calendar year 2024, Notice
2024-09 provides transitional procedures to claim the statutory
exceptions to the elective payment phaseout related to the
domestic content requirement.
To substantiate your claim of exception to the elective
payment phaseout, you must complete and attach a statement to
Form 3468. The statement must say, under penalties of perjury,
that you have reviewed the requirements for the increased cost
exception and the non-availability exception under section 45(b)
(10)(D), and have made a good faith determination that the
qualified facility meets the requirements for the increased cost
exception and/or the non-availability exception, as applicable.
The statement must be signed by a person with the legal
authority to bind the applicable entity in federal tax matters. For
Enter your applicable energy percentage. See Increased Credit
Amount Statement, in Part I, lines 7 and 8, earlier, for more
information.
Line 25j
Enter the basis of property placed in service during the tax year
for the facility that is designed and reasonably expected to
produce, through a process, qualified clean hydrogen that results
in a lifecycle greenhouse gas emission rate less than 0.45
kilograms of CO2e per kilogram of hydrogen as described in
section 45V(b)(2)(D).
Line 25k
Enter your applicable energy percentage. See Increased Credit
Amount Statement, in Part I, lines 7 and 8, earlier, for more
information.
Partnership or S corporation. If you are a partnership or S
corporation electing to transfer the energy credit with respect to
a facility or property (or portion of) under section 6418(c), you
must report the total credit amount with respect to your facility on
line 32 and Form 3800, Part III, line 4a.
Section N—Totals and Credit Reduction for Tax
Exempt
Line 28
Part VII—Rehabilitation Credit Under
Section 47
If proceeds of tax-exempt bonds were used to finance your
facility, continue to line 29. If proceeds were not used to finance
your facility, skip lines 29a through 29e, and go to line 30.
You are allowed a credit for qualified rehabilitation expenditures
made for any qualified rehabilitated building. You must reduce
your basis by the amount of the credit determined for the tax
year. See Regulations section 1.47-7.
Line 29
Credit reduced for tax-exempt bonds. The amount of the
If the adjusted basis of the building is determined in whole or
in part by reference to the adjusted basis of a person other than
credit with respect to any facility for any tax year will be reduced
18
Instructions for Form 3468 (2023)
the taxpayer, see Regulations section 1.48-12(b)(2)(viii) for
additional information that must be attached.
5. If the expenditures are in connection with the rehabilitation
of a certified historic structure or a building in a registered
historic district, the rehabilitation must be certified by the
Secretary of the Interior as being consistent with the historic
character of the property or district in which the property is
located. This requirement doesn't apply to a building in a
registered historic district if:
Qualified rehabilitated building. To be a qualified
rehabilitated building, your building must meet all five of the
following requirements.
1. The building must be a certified historic structure. A
certified historic structure is any building:
a. The building isn't a certified historic structure;
a. Listed in the National Register of Historic Places, or
b. The Secretary of the Interior certifies that the building
isn't of historic significance to the district; and
b. Located in a registered historic district (as defined in
section 47(c)(3)(B)) and certified by the Secretary of the
Interior as being of historic significance to the district.
c. If the certification in (b) occurs after the rehabilitation
began, the taxpayer certifies in good faith that the
taxpayer wasn't aware of that certification requirement
at the time the rehabilitation began.
Certification requests are made through your State
Historic Preservation Officer on National Park Service
(NPS) Form 10-168, Historic Preservation Certification
Application. The request for certification should be made
prior to physical work beginning on the building. For
6. The expenditures can't include any costs allocable to the
part of the property that is (or may reasonably be expected
to be) tax-exempt use property (as defined in section 168(h)
except that “50%” shall be substituted for “35%” in
paragraph (1)(B)(iii)). This exclusion doesn't apply for
line 1f.
2. The building must be substantially rehabilitated. A
building is considered substantially rehabilitated if your
qualified rehabilitation expenditures during a self-selected
24-month period that ends with or within your tax year are
more than the greater of $5,000 or your adjusted basis in
the building and its structural components. Figure adjusted
basis on the first day of the 24-month period or the first day
of your holding period, whichever is later. If you are
rehabilitating the building in phases under a written
architectural plan and specifications that were completed
before the rehabilitation began, substitute “60-month period”
for “24-month period.”
Line 1a
Check the appropriate box whether there was any charitable
conservation contribution deduction under section 170(h)
claimed for the property on which you are claiming a credit for a
certified historic structure.
Line 1b
If you checked “Yes” to line 1a, you must provide the NPS project
number. The NPS project number is assigned:
By NPS to a certified historic structure;
•
To a building on a property that has multiple buildings which
is individually listed in the National Register of Historic
Places referenced in section 170(h)(4)(C)(i); or
To a building that is in a historic district referenced in section
170(h)(4)(C)(ii).
•
3. Depreciation must be allowable with respect to the
building. Depreciation isn't allowable if the building is
permanently retired from service. If the building is damaged,
it isn't considered permanently retired from service where
the taxpayer repairs and restores the building and returns it
to actual service within a reasonable period of time.
•
If the property is a single building individually listed in the
National Register of Historic Places, enter five zeros (“00000”) in
the NPS project number field. For more details on the NPS
project number for easements on certified historic structures,
see the Instructions for Form 8283, Noncash Charitable
Contributions. For more information on charitable conservation
contribution deduction of certified historic structures, see Pub.
526, Charitable Contributions.
4. The building must have been placed in service before
the beginning of rehabilitation. This requirement is met if
the building was placed in service by any person at any time
before the rehabilitation began.
5. For a building under the transition rule:
a. At least 75% of the external walls must be retained with
50% or more kept in place as external walls, and
Line 1c
b. At least 75% of the existing internal structural framework
of the building must be retained in place.
For credit purposes, the expenditures are generally taken into
account for the tax year in which the qualified rehabilitated
building is placed in service. However, with certain exceptions,
you may elect to take the expenditures into account for the tax
year in which they were paid (or, for a self-rehabilitated building,
when capitalized) if:
Qualified rehabilitation expenditures. To be qualified
rehabilitation expenditures, your expenditures must meet all six
of the following requirements.
1. The expenditures must be for:
a. Nonresidential real property,
The normal rehabilitation period for the building is at least 2
years, and
•
It is reasonable to expect that the building will be a qualified
rehabilitated building when placed in service.
•
b. Residential rental property (but only if a certified historic
structure; see Regulations section 1.48-1(h)), or
For details, see section 47(d). To make this election, check
the box on line 1c. The credit, as a percent of expenditures paid
or incurred during the tax year for any qualified rehabilitated
building, depends on the type of structure and its location.
c. Real property that has a class life of more than 12.5
years.
2. The expenditures must be incurred in connection with the
rehabilitation of a qualified rehabilitated building.
Lines 1h, 1i, and 1j
3. The expenditures must be capitalized and depreciated
using the straight line method.
Transitional rule for amounts paid or incurred after 2017.
The 10% credit for pre-1936 buildings no longer applies and the
20% credit for a certified historic structure is generally modified
to allow 100% of qualified rehabilitation expenditures ratably
4. The expenditures can't include the costs of acquiring or
enlarging any building.
19
Instructions for Form 3468 (2023)
over a 5-year period for amounts paid or incurred after 2017. For
qualified rehabilitation expenditures paid or incurred during the
transitional period stated below, the taxpayer can claim the 10%
credit for pre-1936 buildings and the 20% credit for a certified
historic structure (under section 47(a), as in effect before
December 22, 2017). The transitional rule applies to amounts
paid or incurred as follows.
In the case of qualified rehabilitation expenditures with
respect to any building (a) owned or leased by the taxpayer
during the entirety of the period after 2017; and (b) with respect
to the 24-month period selected by the taxpayer under section
47(c)(1)(B)(i) (as in effect after December 21, 2017) (or the
60-month period applicable under section 47(c)(1)(B)(ii)), which
begins no later than 180 days after December 22, 2017, the
transitional rule applies to expenditures paid or incurred after the
end of the tax year in which the 24-month period (or the
60-month period) ends.
Officer, together with proof that the building is a certified historic
structure (or that such status has been requested).
After the final certification of completed work has been
received, file Form 3468 with the first income tax return filed after
receipt of the certification and enter the assigned NPS project
number and the date of the final certification of completed work
on the appropriate lines on the form. Also, attach an explanation
and indicate the amount of credit claimed in prior years.
Failure to receive final certification of completed work with-
in 30 months. If you didn’t receive final certification of
completed work prior to the date that is 30 months after the date
that you filed the tax return on which the credit was claimed, you
must submit, before the last day of the 30th month, a written
statement to the IRS stating that fact. You will be asked to
consent to an agreement under section 6501(c)(4) extending the
period of assessment for any tax relating to the time for which
the credit was claimed.
If you have more than one property that qualifies for the
rehabilitation credit, attach a schedule showing the type of
property (pre-1936 building or certified historic structure), NPS
number, date of final certification, and the partnership employer
identification number (EIN), if applicable. Also, indicate if the
transitional rule applies.
Mail the written statement to:
Internal Revenue Service
Technical Services
31 Hopkins Plaza, Room 1108
Baltimore, MD 21201
Line 1k
Final certification of completed work. You must retain a copy
of the final certification of completed work as long as its contents
may be needed for the administration of any provision of the
Code.
If you are claiming a credit for a certified historic structure on
line 1i or 1j, enter the assigned NPS project number on line 1k.
If the qualified rehabilitation expenditures are from an S
corporation, partnership, estate, or trust, enter on line 1k the EIN
of the pass-through entity instead of the assigned NPS project
number, and skip the second line assigned for the date on
line 1k.
The lessor will provide the lessee with the NPS project
number to enter on line 1k.
If the final certification is denied by the Department of
the Interior, the credit is disallowed for any tax year in
!
CAUTION
which it was claimed, and you must file an amended
return if necessary. See Regulations section 1.48-12(d)(7)(ii) for
details.
For the second line on line 1k, enter the date of the final
certification of completed work received from the Secretary of
the Interior.
Line 2
Patrons, including cooperatives that are patrons in other
cooperatives, enter the unused investment credit from the
rehabilitation investment credit allocated from cooperatives. If
you are a cooperative, see the instructions for Form 3800, Part
III, line 4k, for allocating the investment credit to your patrons.
Certification of completed work not received by time of fil-
ing. If the final certification hasn't been received by the time the
tax return is filed for a year in which the credit is claimed, attach
a copy of the first page of NPS Form 10-168, Historic
Preservation Certification Application (Part 2—Description of
Rehabilitation), with an indication that it was received by the
Department of the Interior or the State Historic Preservation
any unused credits from cooperatives.
TIP
20
Instructions for Form 3468 (2023)
Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United
States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to
figure and collect the right amount of tax.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form
displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents
may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential,
as required by section 6103.
The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for individual
and business taxpayers filing this form is approved under OMB control number 1545-0074 and 1545-0123 and is included in the
estimates shown in the instructions for their individual and business income tax return. The estimated burden for all other taxpayers
who file this form is shown below.
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18 hr., 39 min.
6 hr., 21 min.
10 hr., 55 min.
Learning about the law or the form.
Preparing and sending the form to the IRS
If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be
happy to hear from you. See the instructions for the tax return with which this form is filed.
21
Instructions for Form 3468 (2023)