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

2007 Form 8835, Renewable Electricity, Refined Coal,
and Indian Coal Production Credit
Purpose: This is the first circulated draft of the 2007 Form 8835, Renewable
Electricity, Refined Coal, and Indian Coal Production Credit, for your review and
comments. The major changes are listed below.
TPCC Meeting: None, but one may be arranged if requested.
Prior Version: The 2006 Form 8835 is available at:
http://www.irs.gov/pub/irs-pdf/f8835.pdf
Other Products: Circulations of draft tax forms, instructions, notices, and
publications are posted at:
http://taxforms.web.irs.gov/draft_products.html
Comments: Please email, fax, call, or mail any comments to me or email the
reviewer, Sharon Dewsbury, [email protected] by June 23, 2007.
Mike Cyrus
Tax Forms and Publications
SE:W:CAR:MP:T:B:C
Email: [email protected]
Ph: 202.927.9545
Fax: 202.622.3262

2007 Form 8835 Major Changes
On the Form
1] On lines 1 (section A), 1 (section B), and 19 (section B), the factor used to
calculate the credit for kilowatt-hours of electricity produced and sold is adjusted
for inflation and changed to 0.020 (IRC sec. 45(b)(2); Notice 2007-40).
2] The Form 3800 line reference on lines 10 and 12 is changed from "1h" to "1g"
because the lines on the 2007 Form 3800 are renamed.
3] On line 6 (section B) the factor used to calculate the credit for tons of refined
coal produced and sold is adjusted for inflation and changed to $5.877 (IRC sec.
45(e)(8)(C) and (A); IRC sec.45(e)(2); Notice 2007-40).
4] On line 9 (section B) the factor used to calculate the credit for tons of Indian
coal produced and sold is adjusted for inflation and changed to $1.544 (IRC sec.
45(e)(10)(B) ; IRC sec.45(e)(2); Notice 2007-40).
5] The years are updated on lines 27, 28, and 29.
6] Two changes regarding lines 36a and 36b:
• Lines 36a and 36b (representing the foreign tax credit and the personal tax
credits from Forms 1040 (or 1040NR)) are switched in place (re-ordered)
because IRC 26(a)(2) does not (yet) provide for the old ordering of the
credits/lines.
• On Line 36a (old line 36b), the Form 1040 and 1040NR line references are
changed to conform to Work Request Notification (WRN) changes on the 2007
forms.
7] On line 36c the text is changed to: Credits from Forms 5735 and 8834. This is
to allow for the new American Samoa economic development credit (PL 109-432,
sec. 119(a)).
8] On line 43, the reference to Form 1120-A is removed because the form is
obsolete for 2007.
In the Instructions
1] The What’s New area is removed except for the second bulleted item, which
is rewritten and moved to the second column as the 2nd paragraph under
Purpose of Form. It reads: “Generally, if you are not a partnership or S
corporation, and your only source of this credit is from a partnership, S
corporation, estate, trust, or cooperative, you are not required to complete
Section A of this form. Instead, you can report this credit directly on line 1g of
form 3800. The following exceptions apply.

•
•

You are an estate or trust and the source credit can be allocated to
beneficiaries. For more details, see the Instructions for Form 1041,
Schedule K-1, box 13.
You are a cooperative and the source credit can or must be allocated to
patrons. For more details, see the Instructions for Form 1120-C, Schedule
J, line 5c.”

3] (page 3, top of the first column) In the Note, the year is updated, and the factor
used to calculate the credit for kilowatt-hours of electricity produced and sold is
adjusted for inflation and changed to 2.0 cents. Similarly the factor used to
calculate the credit for tons of refined coal produced and sold is adjusted for
inflation and changed to $5.877, and for tons of Indian coal produced and sold
the new factor is $1.544. These revisions are repeated in the 3rd column of page
3, in the instructions for lines 1 and 6.
4] (3rd column, page 3) The text “of Section A” is removed from the paragraph
headed Fiscal year taxpayers to correspond to the Note at the heading, and to
be consistent with rest of the discussion.
5] The years are updated in the usual places, and particularly in the 3rd column,
page 3, and the 1st column, page 4.
6] In the Line 33, Section B, instructions on page 4, the reference to Form 1120A is removed because the form is obsolete for 2007.
7] The Line 36a, Section B instructions are rewritten as Line 36c, Section B. The
instructions now indicate the American Samoa economic development and
qualified electric vehicle credits.

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transmitted all R
text files for this
cycle update?

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

2007

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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 0.02
$
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 federal tax credits allowed for the project for this and all prior tax years (see instructions)
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 1g
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 1hg

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)
0.02
3
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
.01
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 $5.877
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 $1.544
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 federal tax credits allowed for the project for this and all prior tax years (see instructions)
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 0.02
Multiply line 19 by line 18
Phaseout adjustment (see instructions)
$
3

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 14954R

1

2
3
4
5
6
7
8
9
10

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12
13
14
15

.

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Form

8835

(2007)

2
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 (2007)

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 2007 from a
passive activity (see instructions)
Carryforward of renewable electricity, refined coal, and Indian coal production credit to 2007.
(Note. If you have a credit from Form 8884, see instructions.)
Carryback of renewable electricity, refined coal, and Indian coal production credit from 2008 (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
Credits from Form 1040, lines 47 through 50 and lines 52 through
36a
54 (or Form 1040NR, lines 44, 45, and 47 through 49)
36b
Foreign tax credit
36c
Credits from Forms 5735 and 8834
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 1040NR, line 50; Form 1120,
Schedule J, line 5c; or the applicable line of your return. If line 42 is smaller than line 30, see
instructions

General Instructions
Section references are to the Internal
Revenue Code.

Purpose of Form
Use Form 8835 to claim the renewable
electricity, refined coal, and Indian coal
production credit. The credit is allowed only
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
on page 3).
Generally, if you are a taxpayer that is not a
partnership or S corporation, and your only
source of this credit is from a partnership,
S corporation, estate, trust, or cooperative,
you are not required to complete Section A of
this form. Instead, you can report this credit
directly on line 1g of Form 3800. The following
exceptions apply.

2

● You are an estate or trust and the source
credit can be allocated to beneficiaries. For
more details, see the Instructions for Form
1041, Schedule K-1, box 13.
● You are a cooperative and the source credit
can or must be allocated to patrons. For more
details, see the Instructions for Form 1120-C,
Schedule J, line 5c.

How To Figure the Credit
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 on page 3).
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

22
23

24

25
26
27
28
29

30
31
32

33
34
35

36f
37
38
39
40
41
42

43

during the credit period; see section
45(e)(8)(A). The credit is $1.50 per ton for the
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

(2007)

2
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 (2007)

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 2007, the effective
credit rate for electricity, refined coal, and
Indian coal produced and sold is, respectively,
2.0 cents per kWh, $5.877 per ton and $1.544
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 solid, nonhazardous,
cellulosic waste material; lignin material; or
agricultural livestock waste nutrients as
defined in section 45(c)(3). See Notice
2006-88, 2006-42 I.R.B. 686, for rules related
to open-loop biomass, including an expanded
definition of a qualified facility and rules
related to sales.
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
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.

Page

● Closed-loop biomass facility placed in
service after 12/31/92 and before 10/23/04.

3

areas that are adjacent to the territorial waters
over which the United States has exclusive
rights according to international law.

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Section B
● Wind facility placed in service after 10/22/04
and before 1/1/09.
● Closed-loop biomass facility placed in
service after 10/22/04 and before 1/1/09.
● Closed-loop biomass facility modified to
co-fire with coal or other biomass (or both),
placed in service before 1/1/09. See section
45(d)(2).
● Open-loop biomass facility using cellulosic
waste placed in service before 1/1/09.
● Open-loop biomass facility using agricultural
livestock waste placed in service after
10/22/04 and before 1/1/09 and the nameplate
capacity rating is not less than 150 kilowatts.
● Geothermal energy facility placed in service
after 10/22/04 and before 1/1/09.
● 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 1/1/09.
● Landfill gas or trash combustion facility
using municipal solid waste placed in service
after 10/22/04 and before 1/1/09.
● 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
1/1/09 and any other facility producing
qualified hydroelectric production described in
section 45(c)(8) placed in service after 8/8/05
and before 1/1/09.
● 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.
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 was 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

Who Can Take the Credit
Generally, the owner of the facility is allowed
the credit. In the case of closed-loop biomass
facilities modified to co-fire with coal, other
biomass, or both 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
2007 and 2008 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 2008, 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 (lines 1, 2, 6, 9, or 19 of
Section B)—or the phaseout adjustment
line(s)—line 2 (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 (Line 19, Section B)
Enter the kilowatt-hours of electricity produced
at qualified facilities and multiply by $.02.
Fiscal year filers with 2008 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
$.01. Fiscal filers with 2008 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 2008
also enter zero if the published 2008 reference
price is equal to or less than the 2008 adjusted
threshold price. See How To Figure the Credit
on page 2 to figure the adjustment.
Line 6, Section B only
Enter the tons of refined coal produced and
sold during 2007 from a qualified refined coal
production facility and multiply by $5.877.
Fiscal filers with 2008 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 2008 also enter zero if
the published 2008 reference price is equal to
or less than 1.7 times the 2002 reference
price. See How To Figure the Credit on page 2
to figure the adjustment.

2
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 (2007)

Line 9, Section B only
Enter the tons of Indian coal produced and
sold from a qualified Indian coal facility and
multiply by $1.544.
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 federal tax credit
allowable for any property that is part of the
project.
Line 25, Section B
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
Enter the passive activity credit allowed for the
2007 renewable electricity, refined coal, and
Indian coal production credit from
Form 8582-CR or Form 8810.
Line 28, Section B
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
Use only if you amend your 2007 return to
carry back an unused renewable electricity,
refined coal, and Indian coal production credit
from 2008.
Line 30, Section B
Credit from Form 6478. If you have a current
year credit from Form 6478 (line 13 for
cooperatives, estates, and trusts; line 11 for all
others), include that amount 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

The cooperative is deemed to have made
the election by completing line 11 or line 31,
as applicable. However, the election is not
effective unless (a) made on a timely filed
return (including extensions) and (b) 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.
Estates and trusts. Allocate the credit on line
10 (line 30 of Section B) between the estate or
trust and the beneficiaries in the same
proportion as income was allocated and enter
the beneficiaries’ share on line 11 (line 31 of
Section B).

Line 41, Section B
Enter the amount of the general business
credit allowed for the current year. For
purposes of this line, that amount is the total
of line 19 of Form 3800 and line 26 of Form
8844.

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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 (or Form 1040NR, line 41).
● Corporations. Enter the amount from
Form 1120, Schedule J, line 2, 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 36c, Section B
Enter any American Samoa economic
development credit and any qualified electric
vehicle credit allowed for the current year.

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.

4

Line 43, Section B
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,
refined coal, and Indian 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, carry any unused
current year credit back 1 year and then
forward up to 20 years.
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 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
21 hr., 16 min.
Learning about the law
or the form
1 hr.
Preparing and sending
the form to the IRS
1 hr., 22 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.