Form 8835 Renewable Electricity, Refined Coad, and Indian Coal Pro

2006 Form 8835
Renewable Electricity, Refined Coal, and Indian Coal
Production Credit
Purpose:

This is the first circulated draft of the 2006 Form 8835 and its instructions for
your review and comments. Major changes made to the form are explained
below.

TPCC meeting:

No meeting is planned, but you may request one by contacting Sharon
Dewsbury

Prior Revisions

The 2005 Form 8835 and its instructions may be accessed at:
http://publish.no.irs.gov/FORMS/PUBLIC/PDF/14954Y05.PDF

Other products

Circulations of draft tax forms and instructions are posted at
http://taxforms.web.irs.gov/draft_products.html . Draft publications are not
available.

Comments

Please email, fax, call, or mail any comments by May 22, 2006.

Sharon Dewsbury
Tax Law Specialist,
SE:W:CAR:MP:T:B:P
Phone: 202-622-3838
Fax: 202-622-3262
Email: [email protected]

Major changes to the 2006 Form 8835
Line reference changes were made throughout the form to reflect the changes below.
•

Section A. The heading for Part I was deleted.

•

Section A. The text on line 9 was revised to delete the references to codes.

•

Section A. The text “Current year credit” was deleted from line 10. Reporting
instructions were added to this line.

•

Section A. New lines 11 and 12 were added to allocate portions of the credit to
patrons and beneficiaries.

•

Section A. Part II was deleted since the allowable credit is now figured on Form
3800.

•

Section B The text on line 23 was revised to delete the references to codes.

•

Section B. Reporting instructions were added to line 24 for partnerships and S
corporations.

•

Section B, The text “Current year credit” was deleted from line 30. Reporting
instructions were added to this line.

•

Section B. New lines 31 and 32 were added to allocate portions of the credit to
patrons and beneficiaries. The subsequent lines were renumbered accordingly.

•

Section B. The possessions tax credit and nonconventional source fuel credit were
deleted from renumbered lines 36c and 36d. The specified credits are now shown
on lines 36c through 36e.

•

Section B. The text on line 43 was revised to clarify the reporting instructions for
cooperatives, estates, and trusts.
Page 3. The What’s New section was revised to highlight current changes to the
form.

•

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Date

Form

I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8835, PAGE 1 OF 4
MARGINS; TOP 13mm (1⁄ 2 "), CENTER SIDES. PRINTS: HEAD TO HEAD
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

8835

Department of the Treasury
Internal Revenue Service

Name(s) shown on return

Action

Date

Signature

O.K. to print
Revised proofs
requested

OMB No. 1545-1362

Renewable Electricity, Refined Coal,
and Indian Coal Production Credit

2006

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©

Attachment
Sequence No.

Attach to your tax return.

95

Identifying number

Section A. Electricity produced at qualified facilities placed in service prior to October 23, 2004
1
2
3
4
5
6
7
8
9
10
11
12

Kilowatt-hours produced and sold (see instructions)
3 0.019
$
Phaseout adjustment (see instructions)
3
Credit before reduction. Subtract line 2 from line 1
Reduction for government grants, subsidized financing, and other credits:
Total of government grants, proceeds of tax-exempt government obligations, subsidized energy
financing, and any other credits allowed for the project for this and all prior tax years
Total of additions to the capital account for the project for this and all prior tax years
Divide line 4 by line 5. Show as a decimal carried to at least 4 places
Multiply line 3 by line 6
Subtract line 7 from line 3
Section A, renewable electricity production credit from partnerships, S corporations,
cooperatives, estates, and trusts
Add lines 8 and 9. Cooperatives, estates, and trusts, go to line 11; partnerships and S corporations,
report this amount on Schedule K; all others, report this amount on Form 3800, line 1h
Amount allocated to patrons of the cooperative or beneficiaries of the estate or trust (see instructions)
Cooperatives, estates, and trusts. Subtract line 11 from line 10. Report the credit on
Form 3800, line 1h

1
2
3

4
5
6
7
8

.

9

10
11
12

Section B. Electricity and refined coal produced at qualified facilities placed in service after
Part I

1

2
3
4
5
6
7
8
9
10
11
12
13
14
15

16
17
18
19
20
21

October 22, 2004, and Indian coal produced at facilities placed in service after August 8, 2005
Current Year Credit

Electricity produced at qualified facilities using wind, closed-loop biomass not modified
for co-fire purposes, geothermal, and solar
Kilowatt-hours produced and sold (see instructions)
3 0.019
Electricity produced at qualified facilities using open-loop biomass, small irrigation power,
landfill gas, trash combustion, and hydropower
Kilowatt-hours produced and sold (see instructions)
3
.009
Add lines 1 and 2
$
Phaseout adjustment (see instructions)
3
Subtract line 4 from line 3
Refined coal produced at a qualified refined coal production facility
3 $5.481
Tons produced and sold (see instructions)
$
3
Phaseout adjustment (see instructions)
Subtract line 7 from line 6
Indian Coal produced at a qualified Indian coal production facility
Tons produced and sold (see instructions)
3
$1.50
Credit before reduction. Add lines 5, 8, and 9
Reduction for government grants, subsidized financing, and other credits:
Total of government grants, proceeds of tax-exempt government obligations, subsidized energy
financing, and any other credits allowed for the project for this and all prior tax years
Total of additions to the capital account for the project for this and all prior tax years
Divide line 11 by line 12. Show as a decimal carried to at least 4 places
Multiply line 10 by the lesser of 1⁄ 2 or line 13
Subtract line 14 from line 10
Electricity produced at qualified closed-loop biomass facilities modified to co-fire with
coal, other biomass, or both
Thermal content of closed-loop biomass used in the facilities
Thermal content of all fuels used in the facilities
Divide line 16 by line 17. Show as a decimal carried to at least two places
Kilowatt-hours produced and sold (see instructions)
3 0.019
Multiply line 19 by line 18
Phaseout adjustment (see instructions)
$
3

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 14954R

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10

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.

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Form

8835

(2006)

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8835, PAGE 2 OF 4
MARGINS; TOP 13mm (1⁄ 2 "), CENTER SIDES. PRINTS: HEAD TO HEAD
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8835 (2006)

Part I

Continued

Page

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22
23

Subtract line 21 from line 20
Section B, renewable electricity, refined coal, and Indian coal production credit from partnerships,
S corporations, cooperatives, estates, and trusts

24

Add lines 15, 22, and 23. Partnerships and S corporations, report this amount on Schedule K;
all others continue to line 25

25

Renewable electricity, refined coal, and Indian coal production credit included on line 24 from
passive activities (see instructions)
Subtract line 25 from line 24
Renewable electricity, refined coal, and Indian coal production credit allowed for 2006 from a
passive activity (see instructions)
Carryforward of renewable electricity and refined coal production credit to 2006. (Note. If you
have a credit from Form 8884, see instructions.)
Carryback of renewable electricity, refined coal, and Indian coal production credit from 2007 (see
instructions)
Add lines 26 through 29. (Note. If you also have a credit from Form 6478, see instructions.)
Cooperatives, estates, and trusts, go to line 31; all others, go to Part II
Amount allocated to patrons of the cooperative or beneficiaries of the estate or trust (see instructions)
Cooperatives, estates, and trusts. Subtract line 31 from line 30. Use this amount to complete Part II

26
27
28
29
30
31
32

Part II
33
34
35
36a
b
c
d
e
f
37
38
39
40
41
42
43

Allowable Credit

Regular tax before credits (see instructions)
Alternative minimum tax (see instructions)
Add lines 33 and 34
36a
Foreign tax credit
36b
Credits from Form 1040, lines 48 through 54
36c
Qualified electric vehicle credit (Form 8834, line 20)
36d
Alternative motor vehicle credit (Form 8910, line 18)
36e
Alternative fuel vehicle refueling property credit (Form 8911, line 19)
Add lines 36a through 36e
Net income tax. Subtract line 36f from line 35. If zero, skip lines 38 through 41 and enter-0- on line 42
Net regular tax. Subtract line 36f from line 33. If zero or less, enter -0Enter 25% (.25) of the excess, if any, of line 38 over $25,000 (see instructions)
Subtract line 39 from line 37. If zero or less, enter -0General business credit (see instructions)
Subtract line 41 from line 40. If zero or less, enter -0Credit allowed for the current year. Cooperatives, estates, and trusts. Enter the smaller of
line 32 or line 42. Report this amount on Form 1041, Schedule G, line 2c; or Form 1120-C,
Schedule J, line 5c. If line 42 is smaller than line 32, see instructions. All others. Enter the smaller
of line 30 or line 42. Report this amount on Form 1040, line 55; Form 1120, Schedule J, line 5c;
Form 1120-A, Part I, line 2; or the applicable line of your return. If line 42 is smaller than line 30,
see instructions

Section references are to the Internal Revenue
Code.

for the sale of electricity, refined coal, or Indian
coal produced in the United States or U.S.
possessions from qualified energy resources
at a qualified facility (see Definitions below).

What’s New

How To Figure the Credit

● We deleted Part II of Section A since the tax
liability limit and the allowable credit for
Section A is no longer figured on this form;
instead, it must be figured on Form 3800,
General Business Credit.
● Taxpayers that are not partnerships, S
corporations, cooperatives, estates, or trusts,
and whose only source of this credit is from
those pass-through entities, are not required
to complete or file Section A of this form.
Instead, they can report this credit directly on
line 1h of Form 3800.

Generally, the credit is 1.5 cents per
kilowatt-hour (kWh) for the sale of electricity
produced by the taxpayer from qualified
energy resources at a qualified facility during
the credit period (see Definitions below). The
1.5 cents credit amount is reduced by 1/2 for
open-loop biomass, small irrigation, landfill
gas, trash combustion, and hydropower
facilities. In the case of a closed-loop biomass
facility, the 1.5 cent amount is multiplied by
the ratio of the thermal content of the
closed-loop biomass used in the facility to the
thermal content of all fuels used in the facility.
The credit is $4.375 per ton for the sale of
refined coal produced at a qualified facility
during the credit period; see section
45(e)(8)(A). The credit is $1.50 per ton for the

General Instructions

Purpose of Form
Use Form 8835 to claim the renewable
electricity, refined coal, and Indian coal
production credit. The credit is allowed only

2

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23

24

25
26
27
28
29

30
31
32

33
34
35

36f
37
38
39
40
41
42

43

sale of Indian coal produced at a qualified
facility during the credit period.
The credit for electricity produced is
proportionately phased out over a 3-cent
range when the reference price exceeds the
8-cent threshold price. The refined coal credit
is proportionately phased out over an $8.75
range when the reference price of fuel used as
feedstock exceeds 1.7 times the 2002
reference price. The 1.5-cent credit rate, the
8-cent threshold price, the $4.375 refined coal
rate, and the reference price of fuel used as a
feedstock are adjusted for inflation. The
reference price and the inflation adjustment
factor (IAF) for each calendar year are
published during the year in the Federal
Register. If the reference price is less than the
threshold price (adjusted by the IAF), there is
no reduction. For electricity produced, if the
reference price is more than 3 cents over the
adjusted threshold price, there is no credit; if
the reference price is more than the threshold
price, but not more than 3 cents over the
Form

8835

(2006)

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8835, PAGE 3 OF 4
MARGINS; TOP 13mm (1⁄ 2 "), CENTER SIDES. PRINTS: HEAD TO HEAD
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8835 (2006)

adjusted threshold price, there is a phaseout
adjustment on line 2 of Section A and lines 4
and 21 of Section B. For refined coal
produced, if the reference price is more than
$8.75 over the adjusted threshold price, there
is no credit; if the reference price is more than
the threshold price, but not more than the
$8.75 over the adjusted threshold price, there
is a phaseout adjustment on line 7 of
Section B.
Note. For calendar year 2006, the credit for
electricity, refined coal, and Indian coal
produced and sold is, respectively, 1.9 cents
per kWh, $5.481 per ton and $1.50 per ton;
there is no phaseout adjustment.
Section A example. If the reference price of
electricity is 10.0¢ and the adjusted threshold
price is 9.0¢, reduce the credit by 1/3 ((10.0¢ –
9.0¢) 4 3¢ = .3333). Enter the line 1 credit in
the first entry space on line 2, .3333 in the
second entry space, and multiply to figure the
reduction.

Definitions
Resources means wind, closed-loop biomass,
poultry waste, open-loop biomass, geothermal
energy, solar energy, small irrigation power,
municipal solid waste, hydropower production,
refined coal, and Indian coal.
Closed-loop biomass is any organic
material from a plant that is planted exclusively
for use at a qualified facility to produce
electricity.
Poultry waste is poultry manure and litter,
including wood shavings, straw, rice hulls, and
other bedding material for the disposition of
manure.
Open-loop biomass is cellulosic, lignin, or
agricultural livestock waste materials as
defined in section 45(c)(3).
Geothermal energy is energy derived from
a geothermal deposit as defined by section
613(e)(2).
Small irrigation power is power generated
without any dam or impoundment of water.
See section 45(c)(5).
Municipal solid waste is solid waste as
defined under paragraph 27 of 42 U.S.C. 6903.
Refined coal is a liquid, gaseous, or solid
synthetic fuel produced from coal or high
carbon fly ash meeting the requirements of
section 45(c)(7).
Hydropower production means the
incremental hydropower production for the tax
year from any hydroelectric dam placed in
service on or before 8/8/2005 and the
hydropower production from any
nonhydroelectric dam described in section
45(c)(8)(C).
Indian coal means coal which is produced
from coal reserves which on 6/14/05 were
owned by an Indian tribe or held in trust by the
United States for the benefit of an Indian tribe
or its members.
Qualified facility is any of the following
facilities owned by the taxpayer and used to
produce electricity or, in the case of coal
production facilities, refined and Indian coal.
The facilities are broken down by form section.
Section A
● Poultry waste facility placed in service after
12/31/99 and before 1/1/05.
● Wind facility placed in service after
12/31/93 and before 10/23/04.
● Closed-loop biomass facility placed in
service after 12/31/92 and before 10/23/04.

Page

Section B
● Wind facility placed in service after 10/22/04
and before 1/1/08.
● Closed-loop biomass facility placed in
service after 10/22/04 and before 1/1/08.
● Closed-loop biomass facility modified to
co-fire with coal or other biomass (or both),
placed in service before 1/1/08. See section
45(d)(2).
● Open-loop biomass facility using cellulosic
waste placed in service before 1/1/08.
● Open-loop biomass facility using agricultural
livestock waste placed in service after
10/22/04 and before 1/1/08 and the nameplate
capacity rating is not less than 150 kilowatts.
● Geothermal energy facility placed in service
after 10/22/04 and before 1/1/08.
● Solar energy facility placed in service after
10/22/04 and before 1/1/06.
● Small irrigation power facility placed in
service after 10/22/04 and before 1/1/08.
● Landfill gas or trash combustion facility
using municipal solid waste placed in service
after 10/22/04 and before 1/1/08.
● A refined coal production facility originally
placed in service after 10/22/04 and before
1/1/09.
● Hydropower facility producing incremental
hydroelectric production attributable to
efficiency improvements or additions to
capacity described in section 45(c)(8)(B)
placed in service after 8/8/05 and before
1/1/08 and any other facility producing
qualified hydroelectric production described in
section 45(c)(8) placed in service after 8/8/05
and before 1/1/08.
● Indian coal production facility placed in
service before 1/1/09.
A qualified facility does not include a refined
coal production facility or landfill gas facility
using municipal solid waste to produce
electricity, if the production from that facility is
allowed as a credit under section 45K.

3

over which the United States has exclusive
rights according to international law.

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Credit period is:
● 10 years for a wind, poultry waste,
closed-loop biomass (not modified for co-fire
purposes), or refined coal production facility,
beginning on the date the facility was placed
in service.
● 10 years for a closed-loop biomass facility
modified to co-fire with coal, other biomass
(or both), beginning on the date the facility
was placed in service, but not earlier than
10/22/04.
● 10 years for a hydropower facility, beginning
on the date the efficiency improvements or
additions to capacity are placed in service.
● 7 years for an Indian coal production facility,
beginning on the date the facility was placed
in service, but not before 1/1/2006.
● 5 years for an open-loop biomass facility
using agricultural livestock waste, geothermal,
solar energy, small irrigation power, landfill
gas, or trash combustion facility, beginning on
the date the facility placed in service, if placed
in service during the period after 10/22/04 and
before 8/9/05. The credit period is 10 years if
placed in service after 8/8/05.
● 5 years for an open-loop biomass facility
using cellulosic waste, beginning on the date
the facility was placed in service, but not
earlier than 1/1/05.
United States and U.S. possessions include
the seabed and subsoil of those submarine
areas that are adjacent to the territorial waters

Who Can Take the Credit
Generally, the owner of the facility is allowed
the credit. In the case of closed-loop biomass
and open-loop biomass facilities, if the owner
is not the producer of the electricity, the lessee
or the operator of the facility is eligible for the
credit.

Specific Instructions for
Section A and Section B
Note. Where line references between Section
A and B differ, the Section B line references
are in parentheses.
Figure any renewable electricity, refined
coal, and Indian coal production credit from
your trade or business on lines 1 through 8
(lines 1 through 22 of Section B). Skip lines 1
through 8 (lines 1 through 22 of Section B) if
you are only claiming a credit that was
allocated to you from an S corporation,
partnership, cooperative, estate, or trust.
Fiscal year taxpayers. If you have sales in
2006 and 2007 and the credit rate on line 1
(lines 1, 2, 6, 9, or 19 of Section B) or the
phaseout adjustment on line 2 (lines 4, 7, or 21
of Section B) is different for 2007, make
separate computations for each line. Use the
respective sales, credit rate, and phaseout
adjustment for each calendar year. Enter the
total of the two computations on the credit
rate line(s)—line 1 of Section A (lines 1, 2, 6, 9,
or 19 of Section B)—or the phaseout
adjustment line(s)—line 2 of Section A (lines 4,
7, or 21 of Section B). Attach the
computations to Form 8835 and write FY in
the margin.

Part I—Current Year Credit
Line 1, Section A (Line 19, Section B)
Enter the kilowatt-hours of electricity produced
at qualified facilities and multiply by $.019.
Fiscal year filers with 2007 sales may have to
refigure lines 1 and 19 as explained under
Fiscal year taxpayers above.
Line 2, Section B only
Enter the kilowatt-hours of electricity produced
and sold at qualified facilities and multiply by
$.009. Fiscal filers with 2007 sales must figure
line 2 as explained under Fiscal year taxpayers
above.
Line 2, Section A (Lines 4 and 21, Section B)
Calendar year filers enter zero on lines 2, 4,
and 21. Fiscal year filers with sales in 2007
also enter zero if the published 2007 reference
price is equal to or less than the 2007 adjusted
threshold price. See How To Figure the Credit
to figure the adjustment.
Line 6, Section B only
Enter the tons of refined coal produced and
sold during 2006 from a qualified refined coal
production facility and multiply by $5.481.
Fiscal filers with 2007 sales must figure line 6
as explained under Fiscal year taxpayers
above.
Line 7, Section B only
Calendar year filers enter zero on line 7. Fiscal
year filers with sales in 2007 also enter zero if
the published 2007 reference price is equal to
or less than 1.7 times the 2002 reference
price. See How To Figure the Credit to figure
the adjustment.

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8835, PAGE 4 OF 4
MARGINS; TOP 13mm (1⁄ 2 "), CENTER SIDES. PRINTS: HEAD TO HEAD
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8835 (2006)

Line 9, Section B only
Enter the tons of Indian coal produced and
sold from a qualified Indian coal facility and
multiply by $1.50.
Line 4, Section A (Line 11, Section B)
Enter the sum, for this and all prior tax years,
of:
● Grants provided by the United States, a
state, or political subdivision of a state for the
project;
● Proceeds of a tax-exempt issue of state or
local government obligations used to provide
financing for the project;
● Total of subsidized energy financing
provided directly or indirectly under a federal,
state, or local program provided for the
project; and
● The amount of any other credit allowable
for any property that is part of the project.
Line 24, Section B only
S corporations and partnerships. Allocate
the credit on line 24 to the shareholders and
partners as the current year credit. Attach
Form 8835 to the S corporation or partnership
return and show on Schedule K-1 each
shareholder’s or partner’s credit. Electing large
partnerships include this credit in “general
credits.”
Line 25, Section B only
Enter the amount included on line 24 that is
from a passive activity. Generally, a passive
activity is a trade or business in which you did
not materially participate. Rental activities are
generally considered passive activities,
whether or not you materially participate. For
details, see Form 8582-CR, Passive Activity
Credit Limitations (for individuals, trusts, and
estates), or 8810, Corporate Passive Activity
Loss and Credit Limitations (for corporations).
Line 27, Section B only
Enter the passive activity credit allowed for the
2006 renewable electricity, refined coal, and
Indian coal production credit from
Form 8582-CR or Form 8810.
Line 28, Section B only
Carryforward credit from Form 8884. If you
have a carryforward credit from Form 8884,
include that amount in the total for line 28. On
the dotted line next to line 28, enter “From
Form 8884” and the amount.
Line 29, Section B only
Use only if you amend your 2006 return to
carry back an unused renewable electricity,
refined coal, and Indian coal production credit
from 2007.
Line 10, Section A (Line 30, Section B)
Credit from Form 6478 (Section B only). If
you have a current year credit from
Form 6478, include that amount (line 10 of
Form 6478) in the total for line 30. On the
dotted line next to line 30, enter “From
Form 6478” and the amount.
Line 11, Section A (Line 31, Section B)
Cooperative Election to Allocate Credit to
Patrons. A cooperative described in section
1381(a) can elect to allocate any part of the
renewable electricity, refined coal, and Indian
coal production credit among the patrons of
the cooperative. The credit is allocated among
the patrons eligible to share in patronage
dividends on the basis of the quantity or value
of business done with or for such patrons for
the tax year.

Page

To make an election, attach a statement to
your timely filed return (including extensions)
indicating the amount you are electing to
allocate to patrons. The election will not take
effect unless the organization designates the
apportionment in a written notice mailed to its
patrons during the payment period described
in section 1382(d).
If you timely file your return without making
an election, you can still make the election by
filing an amended return within 6 months of
the due date of the return (excluding
extensions). Enter “Filed pursuant to section
301.9100-2” on the amended return.
Once made, the election cannot be revoked.
Enter the amount allocated to patrons of the
cooperative.

4

Line 41, Section B only
Enter the amount of all other allowed credits
for the current year included in the general
business credit. If you are filing Form 3800,
enter the amount from line 19 of that form
plus the amount, if any, from Form 8844, line
24. Otherwise, enter the amount from the last
line of any separate general business credit
form you are filing.

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Line 11, Section A (Line 31, Section B)
Estates and trusts. Allocate the line 10
(line 30 of Section B) credit between the estate
or trust and the beneficiaries in proportion to
the income allocated to each. Report on
Schedule K-1 each beneficiary’s share of the
credit. Enter the amount allocated to
beneficiaries of the estate or trust.

Part II—Allowable Credit

The credit allowed for the current year may be
limited based on your tax liability. If you are
completing Section B, you must complete
Part II to figure the allowable credit. If you are
completing Section A, you must file
Form 3800, General Business Credit to figure
the allowable credit.
Line 33, Section B
Enter the regular tax before credits from
the following line of the appropriate form or
schedule.
● 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.
Line 34, Section B
Enter the alternative minimum tax (AMT) from
the following line of the appropriate form or
schedule.
● Individuals. Enter the amount from
Form 6251, line 35.
● Corporations. Enter the amount from
Form 4626, line 14.
● Estates and trusts. Enter the amount from
Form 1041, Schedule I, line 56.
Line 36e, Section B
Include on line 36e 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.

Line 39, Section B
See section 38(c)(5) for special rules that apply
to married couples filing separate returns,
controlled groups, regulated investment
companies, real estate investment trusts, and
estates and trusts.

Line 21, Section A (Line 43, Section B)
If you are completing Section A, and cannot
use all of the credit because of the tax liability
limit (line 20 is smaller than line 10) carry the
unused credit back 1 year and then forward
20 years.
If you are completing Section B, enter on
line 41 the smaller of line 30 or line 40. The
credit allowed for the current year must be
applied in the following order.
● Carryforward of the New York Liberty Zone
business employee credit.
● Carryforward of the renewable electricity
and refined coal production credit from
Section B.
● Current year credit from Section B and any
current year credit from Form 6478. Note.
There is no ordering rule to differentiate
between these two credits.
If you cannot use all of the credit because
of the tax liability limit (line 40 is smaller than
line 30), carry any unused current year credit
back 1 year and then forward up to 20 years.
However, the current year credit from Form
6478 cannot be carried back; it must be
carried forward up to 20 years.
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