Summary of changes for Form 8827

IMPLEMENTATION PLAN for 8827
Run by User SD_8R7DB

December 15, 2008

Page 2 of 2

P.L. 110-289, Housing and Economic Recovery Act of 2008
Action
Number
66.00032

Act
Section
3081

IRC
Section
168(k)

Total Action Items: 1

Description of Action
Revise product to reflect election to accelerate the minimum tax credit
in lieu of bonus depreciation.

Date Type Effective Date Target Date Actual Date
TYEA

31-MAR-2008 17-NOV-2008

need to add iplan
item to delete the
election for
property placed in
service after
December 31,
2009 (JAM)

Major Changes to 2008 Form 8827, Credit for Prior Year Minimum
Tax – Corporations
Page 1
We revised lines 7 and 8 to reflect section 3081 of the Housing and Economic Recovery
Act of 2008 (P.L. 110-289). That section provided that corporations may elect to claim
increased minimum tax credits instead of claiming the additional first year depreciation
under section 168(k) for certain property. The increase in allowable credit is treated as
refundable.
We also added instructions for new line 7b to explain the election to accelerate the prior
year minimum tax credit. Detail is provided in those instructions regarding application of
the credit against the built-in gains tax, if any, for corporations that file Form 1120-S,
Form 1120-REIT, or Form 1120-RIC, and that elect to accelerate the credit.

Page 2
We added a worksheet to facilitate calculation of the refundable minimum tax credit and
its interplay with the refundable research credit per the provisions of section 3081 of the
Housing and Economic Recovery Act of 2008 (P. L. 110-289). That section provided
that corporations may elect to claim increased minimum tax credits instead of claiming
the additional first year depreciation under section 168(k) for certain property.