Form 3468 Investment Credit

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I.R.S. SPECIFICATIONS
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INSTRUCTIONS TO PRINTERS
FORM 3468, PAGE 1 OF 6
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
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3468

Department of the Treasury
Internal Revenue Service (99)

Action

Date

O.K. to print
Revised proofs
requested

OMB No. 1545-0155

Investment Credit

2005

Attach to your tax return.

Attachment
Sequence No.

Name(s) shown on return

Part I
1

Signature

52

Identifying number

Current Year Credit

Rehabilitation credit (see instructions for requirements that must be met):
a Check this box if you are electing under section 47(d)(5) to take your qualified rehabilitation
expenditures into account for the tax year in which paid (or, for self-rehabilitated property,
when capitalized). See instructions. Note: This election applies to the current tax year and to


all later tax years. You may not revoke this election without IRS consent
Enter the amount of qualified rehabilitation expenditures and multiply by the percentage shown
(*For property located in the Gulf Opportunity Zone, multiply by applicable percentage in the instructions.):

$
b Pre-1936 buildings
× 10% (.10)*
$
c Certified historic structures
× 20% (.20)*
(1) Enter the assigned NPS project number or the pass-through entity’s
employer identification number (see instructions)
(2) Enter the date that the NPS approved the Request for Certification of
/
/
Completed Work (see instructions)
d (1) Enter the date on which the 24- or
/
/
/
/
60-month measuring period begins
and ends
(2) Enter the adjusted basis of the building as of the beginning date above
$
(or the first day of your holding period, if later)
(3) Enter the amount of the qualified rehabilitation expenditures incurred,
$
or treated as incurred, during the period on line 1d(1) above
e Rehabilitation credit from an electing large partnership (Schedule K-1 (Form 1065-B), box 9)
2 Energy credit for periods ending before January 1, 2006. Basis of property using solar or geothermal
energy placed in service during the tax year (see instructions) $
× 10% (.10)
3 Energy credit for periods ending after December 31, 2005:
a Basis of property using geothermal energy placed in service during
3a
$
the tax year (see instructions)
× 10% (.10)
b Basis of property using solar illumination or solar energy placed in service
3b
during the tax year (see instructions) $
× 30% (.30)
Qualified fuel cell property (see instructions):
c Basis of property installed during the tax
3c
year $
× 30% (.30)
d Kilowatt capacity of property in c
3d


above
× $1,000
3e
e Enter the lesser of line 3c or 3d
Qualified microturbine property (see instructions):
f Basis of property installed during the tax
3f
year $
× 10% (.10)
g Kilowatt capacity of property in f
3g


above
× $200
3h
h Enter the lesser of line 3f or 3g
i Total. Add lines 3a, 3b, 3e, and 3h
4 Qualifying advanced coal project credit for periods ending after August 8, 2005 (see instructions):
a Basis of qualified investment in integrated gasification combined cycle property
4a
placed in service during the tax year $
× 20% (.20)
b Basis of qualified investment in property other than in a above placed
4b
$
in service during the tax year
× 15% (.15)
c Total. Add lines 4a and 4b
5 Qualifying gasification project credit for periods ending after August 8, 2005 (see instructions). Basis of qualified
$
investment in property placed in service during the tax year
× 20% (.20)
6 Credit from cooperatives. Enter the unused investment credit from cooperatives
7 Current year credit. Add lines 1b through 6
For Paperwork Reduction Act Notice, see instructions.

Cat. No. 12276E

1b
1c

1e
2

3i

4c
5
6
7
Form

3468

(2005)

11
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 3468, PAGE 2 OF 6
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PRINTS: HEAD to HEAD
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 203mm (8")
279mm (11")
PERFORATE: NONE
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 3468 (2005)

Part II
8

9

10
11a
b
c
d
e
f
12
13
14
15
16
17
18

Page

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Allowable Credit (See Who must file Form 3800 to find out if you complete Part II or file Form 3800.)

Regular tax before credits:
● Individuals. Enter the amount from Form 1040, line 44
● Corporations. Enter the amount from Form 1120, Schedule J, line 3; Form 1120-A,
Part I, line 1; or the applicable line of your return
● Estates and trusts. Enter the sum of the amounts from Form 1041, Schedule G, lines
1a and 1b, or the amount from the applicable line of your return
Alternative minimum tax: Enter the alternative minimum tax (AMT) from the following line of the
appropriate form or schedule
● Individuals: Form 6251, line 35
● Corporations: Form 4626, line 14
● Estates and trusts: Form 1041, Schedule I, line 56
Add lines 8 and 9
11a
Foreign tax credit
11b
Credits from Form 1040, lines 48 through 54
11c
Possessions tax credit (Form 5735, line 17 or 27)
11d
Nonconventional source fuel credit (Form 8907, line 23)
11e
Other specified credits (see instructions)
Add lines 11a through 11e
Net income tax. Subtract line 11f from line 10. If zero, skip lines 13 through 16 and enter -0- on
line 17
Net regular tax. Subtract line 11f from line 8. If zero or less, enter -0- 13
Enter 25% (.25) of the excess, if any, of line 13 over $25,000 (see
14
instructions)
15
Tentative minimum tax (see instructions)
Enter the greater of line 14 or line 15
Subtract line 16 from line 12. If zero or less, enter -0Credit allowed for the current year. Enter the smaller of line 7 or line 17 here and on Form
1040, line 55; Form 1120, Schedule J, line 6d; Form 1120-A, Part I, line 2; Form 1041, Schedule
G, line 2c; or the applicable line of your return. If line 17 is smaller than line 7, see instructions




General Instructions

Purpose of Form

Section references are to the Internal
Revenue Code unless otherwise noted.

Use Form 3468 to claim the investment
credit. The investment credit consists of
the rehabilitation, energy, qualifying
advanced coal project, and qualifying
gasification project credits.

What’s New
The Gulf Opportunity Zone Act of 2005
increased the rehabilitation credit for
certain properties located in the Gulf
Opportunity Zone (GO Zone) for qualified
expenditures paid or incurred after
August 27, 2005, and before January 1,
2009. For the definition of the GO Zone,
see section 1400M and Pub. 4492,
Information for Taxpayers Affected by
Hurricanes Katrina, Rita, and Wilma.
The Energy Policy Act of 2005:
● Added two new investment credits for
property placed in service after August
8, 2005—the qualifying advanced coal
project credit and qualifying gasification
project credit.
● Added two new energy properties for
the energy credit for property placed in
service after December 31,
2005—qualified fuel cell and qualified
microturbine property.
● Revised energy property to include
equipment placed in service after
December 31, 2005, that uses solar
energy for illumination.
● Increased the energy percentage from
10 to 30% for solar property placed in
service after December 31, 2005.

Investment Credit Property
Investment credit property is any
depreciable or amortizable property that
qualifies for the rehabilitation credit,
energy credit, qualifying advanced coal
project credit, or qualifying gasification
project credit.
You cannot claim a credit for property
that is:
● Used mainly outside the United States
(except for property described in section
168(g)(4));
● Used by a governmental unit or
foreign person or entity (except 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);
● Used by a tax-exempt organization
(other than a section 521 farmers’
cooperative) unless the property is used
mainly in an unrelated trade or business
or is a qualified rehabilitated building
leased by the organization;

8
9

10

11f
12

16
17

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● Used for lodging or in the furnishing of
lodging (see section 50(b)(2) for
exceptions); or
● That is energy property used in a
facility that qualifies for a credit under
section 45.

Election for Certain Leased
Property
If you lease property to someone else,
you may elect to treat all or part of your
investment in new property as if it were
made by the person who is leasing it
from you. Lessors and lessees should
see section 48(d) (as in effect on
November 4, 1990) and related
regulations for rules on making this
election. For limitations, see sections
46(e)(3) and 48(d) (as in effect on
November 4, 1990).

At-Risk Limit for Individuals
and Closely Held Corporations
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 other than a
creditor interest in the business activity.
The cost or basis must be reduced by
the amount of this “nonqualified
nonrecourse” financing related to the

11
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 3468, PAGE 3 OF 6
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PRINTS: HEAD to HEAD
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 203mm (8")
279mm (11")
PERFORATE: NONE
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Form 3468 (2005)

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.

Recapture of Credit
You may have to refigure the investment
credit and recapture all or a portion of it if:
● You dispose of investment credit
property before the end of 5 full years
after the property was placed in service
(recapture period);
● You change the use of the property
before the end of the recapture period
so that it no longer qualifies as
investment credit property;
● 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;
● 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)
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 one-third in an S corporation,
partnership (other than an electing large
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; or
● A net increase in the amount of
nonqualified nonrecourse financing
occurs for any property to which section
49(a)(1) applied.
Exceptions to recapture. Recapture of
the investment credit does not apply to
any of the following.
● A transfer due to the death of the
taxpayer.
● 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.
● A transaction to which section 381(a)
applies (relating to certain acquisitions of
the assets of one corporation by another
corporation).

Page

● A mere change in the form of
conducting a trade or business if:
1. The property is retained as
investment credit property in that trade
or business, and
2. 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.
See section 46(g)(4) (as in
effect on November 4, 1990) if
you made a withdrawal from a
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.
For details, see Form 4255, Recapture
of Investment Credit.

Specific Instructions
S Corporations, Partnerships
(Other Than Electing Large
Partnerships), Estates, and
Trusts
If you are a shareholder, partner, or
beneficiary of a pass-through entity, the
entity will provide to you the information
necessary to complete the following:
● Lines 1b, 1c, and 1d for the
rehabilitation credit.
● The basis of energy property for lines
2, 3a, and 3b.
● The basis for energy property for lines
3c and 3f and the kilowatt capacity for
lines 3d and 3g, respectively.
● The basis of the qualifying investment
in advanced coal project property for
lines 4a and 4b.
● The basis of the qualifying investment in
a gasification project property for line 5.

Regulated Investment
Companies and Real Estate
Investment Trusts
For regulated investment companies and
real estate investment trusts, the following
amounts are limited to a percentage of the
amounts otherwise determined.
● The qualified rehabilitation
expenditures on lines 1b and 1c.
● The basis of energy property for lines
2, 3a, 3b, 3c, and 3f.
● The basis of the qualifying investment
in advanced coal project property for
lines 4a and 4b.
● The basis of the qualifying investment in
gasification project property for line 5.
● The $25,000 amount used to figure the
tax limitation on line 14.

3

Figure this percentage by dividing
taxable income for the year by taxable
income figured without regard to the
deduction for dividends paid. For details,
see Regulations section 1.46-4(b).

Part I. Current Year Credit
Lines 1a through 1e. Rehabilitation
Credit
You are allowed a credit for qualified
rehabilitation expenditures made for any
qualified rehabilitated building. You must
reduce your depreciable basis by the
amount of the credit.
The credit for purposes of line 1b is
10% of the expenditures for any qualified
rehabilitated building other than a certified
historic structure. The credit for purposes
of line 1c is 20% of the expenditures for a
certified historic structure. The Gulf
Opportunity Zone Act of 2005 increases
the rehabilitation credit by substituting
13% for 10% and 26% for 20% with
respect to qualified expenditures paid or
incurred after August 27, 2005, and before
January 1, 2009, on qualified properties
located in the Gulf Opportunity Zone (GO
Zone). For the definition of the GO Zone,
see section 1400M and Pub. 4492,
Information for Taxpayers Affected by
Hurricanes Katrina, Rita, and Wilma.
If you have a credit associated with (a)
property located in the GO Zone, or (b) a
combination of (a) and property not
located in the GO Zone, do the following.
Do not enter the amount of qualified
expenditures and do not alter the
percentages in the captions to the left of
line 1b or 1c. Instead, attach a schedule of
the amount(s) of qualified expenditures and
percentage(s) showing your computations.
Enter the totals in the applicable entry
space on line 1b or 1c on the return.
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 the taxpayer, see Regulations section
1.48-12(b)(2)(viii) for additional information
that must be attached.
To be a qualified rehabilitated building,
your building must meet all four of the
following requirements.
1. The building was originally placed in
service before 1936 or it is a certified
historic structure. A certified historic
structure is any building (a) listed in the
National Register of Historic Places, or
(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. Certification requests are made
through your State Historic Preservation
Officer on National Park Service (NPS)
Form 10-168a, Historic Preservation
Certification Application. The request for
certification must be made prior to the
building being placed in service.

11
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 3468, PAGE 4 OF 6
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PRINTS: HEAD to HEAD
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 203mm (8")
279mm (11")
PERFORATE: NONE
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Form 3468 (2005)

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.”
3. 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.
4. For a building other than a certified
historic structure (a) at least 75% of the
external walls must be retained with
50% or more kept in place as external
walls, and (b) at least 75% of the
existing internal structural framework of
the building must be retained in place.
To be qualified rehabilitation
expenditures, your expenditures must
meet all six of the following
requirements.
1. The expenditures must be for
(a) nonresidential rental property,
(b) residential rental property (but only if
a certified historic structure—see
Regulations section 1.48-1(h)), or (c) real
property that has a class life of more
than 12 years.
2. The expenditures must be incurred
in connection with the rehabilitation of a
qualified rehabilitated building.
3. The expenditures must be
capitalized and depreciated using the
straight line method.
4. The expenditures cannot include the
costs of acquiring or enlarging any
building.
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
does not apply to a building in a
registered historic district if (a) the
building is not a certified historic
structure, (b) the Secretary of the Interior
certifies that the building is not of historic
significance to the district, and (c) if the

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certification in (b) occurs after the
rehabilitation began, the taxpayer
certifies in good faith that he or she was
not aware of that certification
requirement at the time the rehabilitation
began.
6. The expenditures cannot include
any costs allocable to the part of the
property that is (or may reasonably
expect to be) tax-exempt use property
(as defined in section 168(h)).
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 (a) the
normal rehabilitation period for the
building is at least 2 years, and (b) it is
reasonable to expect that the building
will be a qualified rehabilitated building
when placed in service. For details, see
section 47(d). To make this election,
check the box on line 1a.
If you are claiming a credit for a
certified historic structure on line 1c,
enter the assigned NPS project number
on line 1c(1). If the qualified rehabilitation
expenditures are from an S corporation,
partnership, estate, or trust, enter on line
1c(1) the employer identification number
of the pass-through entity instead of the
assigned NPS project number, and skip
lines 1c(2) and 1d and the instructions
below.
Enter the date of the final certification
of completed work received from the
Secretary of the Interior on line 1c(2). If
the final certification has not 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 10-168a, 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 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.
You must retain a copy of the final
certification of completed work as long
as its contents may be needed for the

4

administration of any provision of the
Internal Revenue Code.
If the final certification is denied by the
Department of Interior, the credit is
disallowed for any tax year in which it
was claimed, and you must file an
amended return if necessary. See
Regulations section 1.48-12(d)(7)(ii) for
details.

Lines 2 and 3a through 3i. Energy
Credit
If energy 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). 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.
To qualify, energy property must be
constructed, reconstructed, or erected
by the taxpayer. If acquired by the
taxpayer, the original use of such
property must begin with the taxpayer.
The property must 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. Energy
property does not include any property
that is public utility property as defined
by section 46(f)(5) (as in effect on
November 4, 1990).
You must reduce the depreciable
basis by 50% of the energy credit
determined.
You also must reduce the basis of
energy property by any amount
attributable to qualified rehabilitation
expenditures.

Line 2
Enter the basis of any property using
solar or geothermal energy placed in
service during the tax year and before
January 1, 2006.
For purposes of line 2, solar energy
property is equipment that uses solar
energy to:
● Generate electricity,

11
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 3468, PAGE 5 OF 6
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PRINTS: HEAD to HEAD
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 203mm (8")
279mm (11")
PERFORATE: NONE
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Form 3468 (2005)

● Heat or cool (or provide hot water for
use in) a structure, or
● Provide solar process heat (but not to
heat a swimming pool).
Geothermal energy property is
equipment that uses geothermal energy
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.

Line 3a.
Enter the basis of any property using
geothermal energy placed in service
after December 31, 2005. See line 2
instructions for the definition of
geothermal energy property.

Line 3b.
Enter the basis of any solar energy
property placed in service after
December 31, 2005.
For purposes of line 3b, solar energy
property includes solar energy property
as defined in the line 2 instructions and
equipment which uses solar energy to
illuminate the inside of a structure using
fiber-optic distributed sunlight.

Line 3c.
Enter the basis of any qualified fuel cell
property placed in service after
December 31, 2005. Qualified fuel cell
property is a fuel cell power plant that
generates at least 0.5 kilowatt of
electricity using an electrochemical
process and has electricity-only
generation efficiency greater than 30
percent. See section 48(c)(1) for further
details.

Line 3f.
Enter the basis of any qualified
microturbine property placed in service
after December 31, 2005. Qualified
microturbine property is a stationary
microturbine power plant which
generates less than 2,000 kilowatts and
has an electricity-only generation
efficiency of not less than 26 percent at
International Standard Organization
conditions. See section 48(c)(2) for
further details.

Lines 4a through 4c and Line 5.
Qualifying advanced coal and
gasification project credit
The basis of property may have to be
reduced for certain financing received
under rules similar to section 48(a)(4) and
described in the first paragraph under
Lines 2 and 3a through 3i. Energy Credit.

Page

5

Qualified investment for any tax year is
the basis of eligible property placed in
service by the taxpayer during the tax
year which is part of the qualifying
project. Eligible property is limited to
property for which depreciation or
amortization is available and the
construction, reconstruction, or erection
of which is completed by the taxpayer,
or which is acquired by the taxpayer if
the original use of such property
commences with the taxpayer.

● Is carried out by an eligible entity (as
defined in section 48B(c)(7), and

Line 4a.

Section 1381(a) cooperative
organizations may claim the investment
credit. If the cooperative cannot use any
of the credit because of the tax liability
limit, the unused credit must be
allocated to the patrons of the
cooperative. The recapture provisions of
section 50 apply as if the cooperative
had kept the credit and not allocated it.
Patrons should enter their unused
investment credit from cooperatives.

Enter the basis of any qualifying
investment in integrated gasification
combined cycle property placed in
service after August 8, 2005. Eligible
property is any property which 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.
A qualifying advanced coal project is a
project:
● Using advanced coal-based generation
technology (as defined in section 48A(f)),
and
● Part of a certified advanced coal
project program (as defined in sections
48A(d)(2) and 48A(e)).

● The portion of the qualified investment
does not exceed $650,000,000 and is
certified under section 48B(d).
A qualifying gasification project credit
is not allowed for any qualified
investment for which a qualifying
advanced coal project credit is allowed.

Line 6. Credit From Cooperatives

Part II. Allowable Credit
The credit allowed for the current year
may be limited based on your tax
liability. Use Part II to figure the
allowable credit unless you must file
Form 3800, General Business Credit.
Who must file Form 3800. You must file
Form 3800 if you have:

Integrated gasification combined cycle
is an electric generation unit which
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.

● An investment credit from a passive
activity,

Line 4b.

See the instructions for Form 3800 to
find out which credits are included in the
general business credit.

Enter the basis of any qualifying
investment, other than in line 4a, in an
advanced coal project property service
after August 8, 2005. Eligible property is
any property which is part of a qualifying
advanced coal project (defined above)
not using an integrated gasification
combined cycle.

Line 5.
Enter the basis of the qualified
investment in qualifying gasification
project property placed in service after
August 8, 2005. For the 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. A qualifying gasification project
is any project that:
● Employs gasification technology (as
defined in section 48B(c)(2)),

● More than one credit included in the
general business credit (other than a
credit from Form 8844, Form 6478, or
Section B of Form 8835), or
● A carryback or carryforward of any of
those credits.

C corporations that are required to file
Form 4626, Alternative Minimum Tax—
Corporations, may also use Schedule A
of Form 3800 to determine if they are
entitled to an additional general business
credit for any regular investment credit
carryforward to 2005 for property placed
in service before January 1, 1991, under
section 38(c)(2) (as in effect on
November 4, 1990).

Line 11e. Other Specified Credits
Include on line 11e any amounts claimed
on:
● Form 8834, Qualified Electric Vehicle
Credit, line 20;
● Form 8910, Alternative Motor Vehicle
Credit, line 18; and
● Form 8911, Alternative Fuel Vehicle
Refueling Property Credit, line 19.

11
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 3468, PAGE 6 OF 6
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PRINTS: HEAD to HEAD
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 203mm (8")
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PERFORATE: NONE
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 3468 (2005)

Line 14.
If a husband and wife file separate
returns, each must use $12,500 instead
of $25,000. But if one of them has no
general business credits (and no
carryforwards or carrybacks to the
current year), then the other may use the
entire $25,000.
A member of a controlled group must
use only its apportioned share of the
$25,000.
A regulated investment company or a
real estate investment trust should see
Regulated Investment Companies and
Real Estate Investment Trusts on page 3.
For estates and trusts, the $25,000
amount is reduced by the same
proportionate share of income that was
allocated to the beneficiaries.

Line 15. Tentative Minimum Tax
Although you may not owe AMT, you
generally must still compute the tentative
minimum tax (TMT) to figure your credit.
For a small corporation exempt from
the AMT under section 55(e), enter zero.
Otherwise, complete and attach the

Page

applicable AMT form or schedule. Enter
on line 12 the TMT from the line shown
below.
● Individuals: Form 6251, line 33.
● Corporations: Form 4626, line 12.
● Estates and trusts: Form 1041,
Schedule I, line 54.

Line 18. Current Year Credit
If you cannot use all of the credit
because of the tax liability limit (line 17
is smaller than line 7), carry the unused
credit back 1 year and then forward up
to 20 years. See the instructions for
Form 3800 for details.
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

Printed on Recycled Paper

6

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 taxpayers filing this
form is approved under OMB control
number 1545-0074 and is included in
the estimates shown in the instructions
for their individual income tax return. The
estimated burden for all other taxpayers
who file this form is shown below:
Recordkeeping

13 hr., 9 min.

Learning about the
law or the form

3 hr., 34 min.

Preparing and sending
the form to the IRS

3 hr., 57 min.

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.