Form 3800, General Business Credit

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Instructions for Form 3800

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2009

Department of the Treasury
Internal Revenue Service

Instructions for Form 3800
General Business Credit

Who Must File

below to determine which credits are
allowed first.
If you have an unused credit after
carrying it back, carry it forward to each of
the 20 tax years after the year of the
credit. Any qualified business credits (as
defined in section 196(c)) that are unused
after the last tax year of the 20-year
carryforward period (or at the time an
individual taxpayer dies or other taxpayer,
such as a corporation or partnership,
ceases to exist) may be taken as a
deduction in the earlier of:
• The tax year following the last tax year
of the 20-year carryforward period or
• The tax year in which the individual
taxpayer dies or other taxpayer ceases to
exist.
Carryforward of the energy credit and
the renewable electricity credit. If a
grant is paid under Public Law 111-5,
section 1603, for investment in energy
property or renewable electricity property,
any carryforward of the energy credit or
renewable electricity credit related to that
property is reduced to recapture the
unused portion of the credit.

You must file Form 3800 to claim any of
the general business credits.

Change in Filing or Marital
Status

If your only source of credits listed on
Form 3800, Part I, is from pass-through
entities, you may not be required to
complete the source credit form. Instead,
you may be able to report the credit
directly on Form 3800. For more details,
see Part I. Current Year Credit on page 2.

Your general business credit is limited to
your tax liability. Therefore, if you filed a
joint return in a carryback or carryforward
year and your marital status or filing
status has changed, you may need to
figure your separate tax liability in that
carryback or carryforward year. This
would apply if:
• You filed as single in the credit year,
but filed a joint return in the carryback or
carryforward year;
• You filed a joint return in the credit
year, but filed a joint return with a different
spouse in the carryback or carryforward
year; or
• You were married and filed a separate
return in the credit year, but filed a joint
return with the same or a different spouse
in the carryback or carryforward year.
Determine your separate tax liability in
the carryback or carryforward year as
follows.
1. Figure your tax for the carryback or
carryforward year as though you were
married filing a separate return.
2. Figure your spouse’s tax in that
year as though he or she was married
filing a separate return.
3. Add the amounts in steps 1 and 2.
4. Divide the amount in step 1 by the
amount in step 3. The result should be
rounded to at least three decimal places.
5. Multiply the decimal in step 4 by the
total tax shown on your joint return for the
carryback or carryforward year. The result
is your separate tax liability and a

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

What’s New
• The election to accelerate the research
credit in lieu of the special depreciation
allowance for eligible qualified property is
extended to apply to extension property
that is generally placed in service during
2009. See the instructions for line 18b on
page 3.
• The limitation for the credit for
increasing research activities is now
figured on line 1c instead of line 19.
• The following new credits are added to
line 1.
1. Line 1y - Qualified plug-in electric
drive motor vehicle credit (Form 8936).
2. Line 1z - Qualified plug-in electric
vehicle credit (Form 8834, Part I only).

General Instructions

Carryback and
Carryforward of Unused
Credit
If you cannot use part or all of the credit
because of the tax liability limit (line 32 is
less than the sum of lines 8, 24, and 30),
carry the unused credit back one tax year.
To carry back an unused credit, file an
amended return (Form 1040X, Amended
U.S. Individual Income Tax Return,
1120X, Amended U.S. Corporation
Income Tax Return, or other amended
return) for the prior tax year or an
application for tentative refund (Form
1045, Application for Tentative Refund, or
Form 1139, Corporation Application for
Tentative Refund). Generally, if you file
an application for a tentative refund, it
must be filed by the end of the tax year
following the tax year in which the credit
arose.
Note. No part of the unused credit for
any year attributable to any credit can be
carried back to any tax year before the
first tax year for which that credit was first
allowable. See Credit Ordering Rule

Cat. No. 10622Q

carryback or carryforward credit is applied
against this amount only.
Although your carryback or
carryforward of the credit is limited to your
separate tax liability, the amount of your
refund resulting from the carryback or
carryforward is further limited to your
share of the joint overpayment. This is
found by subtracting your separate tax
liability (as determined above) from your
contribution toward the payment.
Unless you have an agreement or
clear evidence of each spouse’s
contribution toward the payment of the
joint liability, your contribution includes
the tax withheld on your wages and your
share of the joint estimated tax or tax paid
with the return. Your share of these
payments is found by using the same
formula used in determining your
separate tax liability. Substitute the joint
estimated tax, or tax paid with the return,
for the tax in step 5. If the original return
for the carryback year resulted in an
overpayment, reduce your contribution by
your share of the refund.
Attach a copy of the computation to
your amended return or application for
tentative refund.

Credit Ordering Rule
General business credits reported on
Form 3800 are treated as used on a
first-in, first-out basis by offsetting the
earliest-earned credits first. Therefore, the
order in which the credits are used in any
tax year is:
• Carryforwards to that year, the earliest
ones first,
• The general business credit earned in
that year, and
• The carryback to that year.
When relevant, the components of the
general business credit reported on Form
3800 arising in a single tax year are used
in the following order.

Part I, line 1

• Investment credit (in the following
order — rehabilitation credit, energy
credit, qualifying advanced coal project
credit, qualifying gasification project
credit, and qualifying advanced energy
project credit).
• Welfare-to-work credit.
• Credit for increasing research activities.
• Low-income housing credit.
• Disabled access credit.
• Renewable electricity production credit.
• Indian employment credit.
• Orphan drug credit.
• New markets credit.
• Credit for small employer pension plan
startup costs.
• Credit for employer-provided child care
facilities and services.

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• Biodiesel and renewable diesel fuels

credit.
• Low sulfur diesel fuel production credit.
• Distilled spirits credit.
• Nonconventional source fuel credit.
• Energy efficient home credit.
• Energy efficient appliance credit.
• Alternative motor vehicle credit.
• Alternative fuel vehicle refueling
property credit.
• Credits for affected Midwestern
Disaster Area employers.
• Mine rescue team training credit.
• Agricultural chemicals security credit.
• Credit for employer differential wage
payments.
• Carbon dioxide sequestration credit.
• Qualified plug-in electric drive motor
vehicle credit.
• Qualified plug-in electric vehicle credit.
• Credit for contributions to selected
community development corporations.
• General credits from an electing large
partnership.

Part II, lines 24 and 29

• Empowerment zone and renewal
community employment credit.
• Investment credit (in the following order
- rehabilitation credit and energy credit).
• Work opportunity credit.
• Alcohol and cellulosic biofuel fuels
credit.
• Low income housing credit.
• Renewable electricity, refined coal,
and Indian coal production credit.
• Employer social security and Medicare
taxes paid on certain employee tips.
• Qualified railroad track maintenance
credit.
Although these credits are aggregated
on Form 3800, keep a separate record of
each credit to ensure proper accounting
of the credits.

Specific Instructions
Part I. Current Year Credit
Complete and attach the appropriate
credit forms used to figure your current
year credit. Generally, if you are a
taxpayer that is not a partnership or S
corporation, and your only source for a
credit listed in Part I of this form is from a
partnership, S corporation, estate, trust,
or cooperative, you are not required to
complete the source credit form or attach
it to Form 3800. The following exceptions
apply:
• You are claiming the investment credit
(Form 3468) or biodiesel and renewable
diesel fuels credit (Form 8864).
• The taxpayer is an estate or trust and
the source credit can be allocated to
beneficiaries. For more details, see the
Instructions for Form 1041, U.S. Income
Tax Return for Estates and Trusts,
Schedule K-1, box 13.
• The taxpayer is a cooperative and the
source credit can or must be allocated to
patrons. For more details, see the
Instructions for Form 1120-C, U.S.
Income Tax Return for Cooperative
Associations, Schedule J, line 5c.

Lines 1a and 29a
If you are a cooperative described in
section 1381(a), you must allocate to your
patrons the investment credit in excess of
your tax liability limit. Allocate to your
patrons the portion, if any, of the
investment credit on line 8 or line 30 in
excess of line 18a or line 28, respectively.
While any excess is allocated to patrons,
any credit recapture applies as if you as
the cooperative had claimed the entire
credit.

Line 1bb
Enter the total of the amounts shown in
box 7 of the Schedules K-1 (Form
1065-B), Partner’s Share of Income
(Loss) From an Electing Large
Partnership, you received from electing
large partnerships (ELPs).

Line 1c
Research credit limitation. If you are
an individual, the amount of the research
credit that may be included on line 1c is
limited to the amount of tax attributable to
your taxable income from the sole
proprietorship or your interest in the
pass-through entity (partnership, S
corporation, estate, or trust) generating
the credit. Figure the research credit
limitation separately for each sole
proprietorship or pass-through entity by
using the following formula:
Taxable income attributable to the sole
proprietorship or your interest in the
pass-through entity
Line 13 X
Your taxable income for the year

The sum of the fractions used for
determining the limits cannot exceed one.
The research credit used to determine the
limitation is the sum of the current year
credit (determined without regard to the
limitation), any carryforwards of the credit
not used in prior years, and any carryback
of the credit from 2010. For information
on how to compute your taxable income
for the year, your taxable income
attributable to the sole proprietorship, or
your interest in the pass-through entity,
see Regulations sections 1.41-7(c) and
1.53-3.
If in the current tax year you had no
taxable income attributable to a particular
business interest, you cannot claim any
research credit this year related to that
business.
If any of your research credit is not
allowed to be used because of this
limitation, see Carryback and
Carryforward of Unused Credit on page 1.

8835, line 31. Generally, a passive
activity is a trade or business in which you
did not materially participate. Generally,
rental activities are passive activities,
whether or not you materially participated.
See Form 8582-CR, Passive Activity
Credit Limitations, or Form 8810,
Corporate Passive Activity Loss and
Credit Limitations, for details.

Line 5
Enter the passive activity credit allowed
from Form 8582-CR or Form 8810. Do
not include any amount on line 5 that is
from Form 8835, line 33. See the
instructions for the applicable form for
details.

Line 6
Add all carryforwards to 2009 of unused
credits that are reported on Form 3800,
Part I. Do not include any amount on line
6 that is from Form 8835, line 34.
Note. Individuals claiming the research
credit from a sole proprietorship or
pass-through entity do not include any
carryforward of that credit on line 6.
Instead, include the carryforward when
figuring the research credit limitation on
line 1c.
Also include any carryforward to 2009
of any unused credit from:
• Form 3468 (for years prior to 2008 for
the rehabilitation credit) (for tax years
beginning before October 4, 2008, for the
energy credit);
• Form 5884 for years prior to 2007;
• Form 6478 for years prior to 2005;
• Form 8846 for years prior to 2007; or
• Form 8900 for years prior to 2008.
For each credit, attach a detailed
computation showing: (a) the tax year the
credit originated, the amount of the credit,
and the amount allowed for that year; (b)
for each carryback year, the year and the
amount of the credit allowed after you
applied the carryback; and (c) for each
carryforward year, the year and the
amount of the credit allowed after you
applied the carryforward.

Line 7
Use line 7 only when you amend your
2009 return to carry back unused credits
from 2010. Do not include any amount on
line 7 that is from Form 8835, line 35.
Note. Individuals claiming the research
credit from a sole proprietorship or
pass-through entity do not include any
carryback of that credit on line 7. Instead,
include the carryback when figuring the
research credit limitation on line 1c.

Part II. Allowable Credit

Line 1f
Cooperatives, estates, and trusts: enter
the amount from Form 8835, line 12, and
the applicable part of the amount from
Form 8835, line 38. All others: enter the
amount from Form 8835, line 10, and the
applicable part of the amount from Form
8835, line 36. Do not enter an amount
from Form 8835 that is included on Form
3800, line 29e.

Line 3
Enter the credits included on line 2 that
are from passive activities. Do not include
any amount on line 3 that is from Form

-2-

Line 15
See section 38(c)(5) for special rules that
apply to married couples filing separate
returns, controlled corporate groups,
regulated investment companies, real
estate investment trusts, estates, and
trusts.

Line 16
Although you may not owe AMT, you
generally must still compute the tentative
minimum tax (TMT) to figure your credit.
Enter zero on line 16 if:

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Instructions for Form 3800

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• You are a small corporation exempt

from the AMT under section 55(e) or
• The only general business credit you
are claiming is on line 29.
Otherwise, complete and attach the
appropriate AMT form or schedule and
enter the TMT on line 16.

Line 18b
Section 168(k)(4) allows a corporation to
elect to claim a refundable credit for
certain unused research credits in lieu of
the special depreciation allowance for
eligible qualified property.

If the corporation made an election to
increase the research credit or minimum
tax credit limitations for its first tax year
ending after March 31, 2008, it can
choose not to have the election apply to
certain extension property (defined
below). Otherwise, the original election
continues to apply to both eligible
qualified property and extension property.
However, in this case, separate bonus
depreciation amounts, maximum increase
amounts, and maximum amounts are
computed for eligible qualified property
and for extension property. If the
corporation did not make the election for

Worksheet for Calculating the Refundable
Minimum Tax Credit and Research Credit
Amounts

Keep for Your
Records
(a)
Eligible
qualified
property

1. Enter depreciation (including the special depreciation
allowance) that would have been allowed for eligible
qualified property or extension property (as
appropriate) placed in service during the tax year if
section 168(k)(1) had applied to such property. . . . . .
2. Enter depreciation for eligible qualified property or
extension property (as appropriate) placed in service
during the tax year and figured without regard to
section 168(k)(1). . . . . . . . . . . . . . . . . . . . . . . . .
3. Subtract line 2 from line 1. . . . . . . . . . . . . . . . . . .
4. Multiply line 3 by 20%. . . . . . . . . . . . . . . . . . . . . .
5. Enter any unused research credit carryforward from
tax years beginning before 2006. . . . . . . . . . . . . . .
6. Enter any unused minimum tax credit carryforward
from tax years beginning before 2006. . . . . . . . . . .
7. Add line 5 and line 6. . . . . . . . . . . . . . . . . . . . . . .
8. Multiply line 7 by 6% . . . . . . . . . . . . . . . . . . . . . .
9. Enter the smaller of line 8 or $30,000,000. . . . . . . . .
10. Enter any bonus depreciation amounts determined
under section 168(k)(4)(C) attributable to eligible
qualified property (or extension property, as
appropriate) for all preceding tax years ending after
March 31, 2008. . . . . . . . . . . . . . . . . . . . . . . . . .
11. Subtract line 10 from line 9. If zero or less, enter -0-.
12. Bonus depreciation amount. Enter the smaller of line 4
or line 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note: If you do not have a research credit
carryforward, or if you choose not to allocate bonus
depreciation amounts to research credit carryforwards,
skip lines 13 and 14 and enter -0- on line 15. . . . . . .
13. Enter the amount from line 10 allocated to the
research credit carryforward shown on line 5. . . . . . .
14. Maximum bonus depreciation amount allocable to the
research credit. Subtract line 13 from line 5. . . . . . . .
15. Refundable research credit. Enter the smaller of line
14 or the amount on line 12 that you choose to
allocate to the research credit. If you have a minimum
tax credit, continue to line 16. All others, enter the total
of line 15, columns (a) and (b), on your 2009 Form
3800, line 18b. . . . . . . . . . . . . . . . . . . . . . . . . . .
16. Subtract line 15 from line 12. . . . . . . . . . . . . . . . . .
17. Enter the amount from line 10 allocated to the
minimum tax credit carryforward shown on line 6. . . .
18. Maximum bonus depreciation amount allocable to the
minimum tax credit. Subtract line 17 from line 6. . . . .
19. Refundable minimum tax credit. Enter the smaller of
line 18 or line 16 in appropriate columns. Enter the
total of line 19, columns (a) and (b), on your 2009
Form 8827, line 7b. . . . . . . . . . . . . . . . . . . . . . . .

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8.
9.

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18.

19.

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(b)
Extension
property

its first tax year ending after March 31,
2008, it can make the election only for
extension property for its first tax year
ending after December 31, 2008.
S corporations that make the election
to accelerate the credit can use the credit
only against the built-in gains tax. For
corporations that file Form 1120-REIT,
see the instructions for Schedule D (Form
1120S), line 20. Corporations that file
Form 1120-REIT or Form 1120-RIC must
apply the credit first against the built-in
gains tax, if any, and reduce the
refundable credit by the amount so
applied. See the instructions for line h of
the Built-in Gains Tax Worksheet in the
separate instructions for those forms.
Eligible qualified property. Generally,
eligible qualified property is:
• Qualified property under section
168(k)(2) that is acquired after March 31,
2008, and placed in service before
January 1, 2009, or
• Qualified property described in either
section 168(k)(2)(B) (long production
period property) or section 168(k)(2)(C)
(certain aircraft) that is acquired after
March 31, 2008, and placed in service in
2009.
This does not include property acquired
pursuant to a written binding contract in
effect before April 1, 2008. See section
168(k)(4)(G)(iii) for special rules for
written binding contracts involving certain
passenger aircraft.
Extension property. Generally,
extension property is:
• Qualified property under section
168(k)(2) that is acquired after March 31,
2008, placed in service in 2009, and that
is not property described in section
168(k)(2)(B) or (C), and
• Qualified property described in sections
168(k)(2)(B) and (C), that is acquired after
March 31, 2008, and placed in service in
2010.
This does not include property acquired
pursuant to a written binding contract in
effect before April 1, 2008. See section
168(k)(4)(G)(iii) for special rules for
written binding contracts involving certain
passenger aircraft.
For corporations electing to accelerate
the use of unused research credit
carryforwards and obtain a refundable
credit in lieu of the special depreciation
allowance, figure the bonus depreciation
amount attributable to the research credit
by using the Worksheet for Calculating
the Refundable Minimum Tax Credit and
Research Credit Amounts on this page.
Allocations of bonus depreciation
amounts to research credits may be
revoked only with the consent of the IRS.
Separate worksheet computations must
be made for eligible qualified property and
for extension property. All others enter
zero on line 18b.
How to make the election not to apply
section 168(k)(4) to extension
property. To make the election not to
apply section 168(k)(4) to extension
property, the corporation must attach a
statement to its timely filed tax return
(including extensions) for its first tax year
ending after December 31, 2008; and
provide written notification to any
partnership in which it is a partner. The

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Instructions for Form 3800

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statement and the written notification to
the partnership must indicate that the
corporation is making the election not to
apply section 168(k)(4) to extension
property. Generally, the notification to a
partnership in which the corporation is a
partner must be made on or before the
due date (including extensions) of the
corporation’s tax return for its first tax
year ending after December 31, 2008. If
the corporation makes a late election, the
notification to the partnership must be
made no later than the date the late
election is filed. If the corporation timely
filed its tax return without making this
election, it can still make the election by
filing an amended return within 6 months
of the due date of the return (excluding
extensions). Attach the statement to the
amended return and write ‘‘Filed pursuant
to section 301.9100-2’’ at the top of the
amended return. If the corporation does
not meet the requirements of Regulations
section 301.9100-2, it can still file a
request for extension of time to make the
election under Regulations section
301.9100-3.
How to make the extension property
election. To make the section 168(k)(4)
extension property election, a corporation
claims the refundable credit on line 32g of
Form 1120, U.S. Corporation Income Tax
Return, for its first tax year ending after
December 31, 2008, and attaches Form
3800 and Form 4562, Depreciation and
Amortization (Including Information on
Listed Property). The corporation must
also provide written notification to the
partnership in which it is a partner. The
notification must indicate that the
corporation is making the section
168(k)(4) extension property election.
Generally, the notification to a partnership
in which the corporation is a partner must
be made on or before the due date
(including extensions) of the corporation’s
tax return for its first tax year ending after
December 31, 2008. If the corporation
makes a late election, the notification to
the partnership must be made no later
than the date the late election is filed. If
the corporation timely filed its tax return
without making this election, it can still
make the election by filing an amended
return within 6 months of the due date of
the return (excluding extensions). Attach
the statement to the amended return and

write ‘‘Filed pursuant to section
301.9100-2’’ at the top of the amended
return. If the corporation does not meet
the requirements of Regulations section
301.9100-2, it can still file a request for
extension of time to make the election
under Regulations section 301.9100-3.
For more information on the election to
accelerate the research credit in lieu of
the special depreciation allowance,
including how to make the elections
regarding extension property, see the
following.
• Rev. Proc. 2008-65, 2008-44 I.R.B.
1082, available at http://www.irs.gov/irb/
2008-44_IRB/ar15.html;
• Rev. Proc. 2009-16, 2009-6 I.R.B. 449,
available at http://www.irs.gov/irb/
2009-06_IRB/ar10.html; and
• Rev. Proc. 2009-33, 2009-29 I.R.B.
150, available at http://www.irs.gov/irb/
2009-29_IRB/ar09.html.
For more information on the special
depreciation allowance, see the
Instructions for Form 4562 and Pub. 946,
How To Depreciate Property.

Lines 19a and 19b
Corporations. If the corporation has
undergone a post-1986 ownership
change (as defined in section 382(g)),
section 383 may limit the amount of tax
that may be offset by pre-change general
business credits. Also, if a corporation
acquires control of another corporation (or
acquires its assets in a reorganization),
section 384 may limit the amount of tax
attributable to recognized built-in gains
that may be offset by pre-acquisition
general business credits. If either of these
limitations apply, attach a computation of
the allowable general business credit,
enter the amount on lines 19a and 19b,
and write “Sec. 383” or “Sec. 384” in the
margin next to your entry on lines 19a
and 19b.
Note. If the only credits you are claiming
are listed in Part I, enter the line 19b
amount on line 32 and skip lines 20
through 31.

Line 20
Form 8844 filers: multiply line 16 by 75%.
All others skip lines 20 through 24 and
enter zero on line 25.

-4-

Line 32
If line 32 is smaller than the sum of lines
8, 24, and 30, see Carryback and
Carryforward of Unused Credit on page 1.
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 Internal
Revenue Code 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 . . . . . . . . .

23 hr., 26 min.

Learning about the
law or the form . . . . . . . . . .

1 hr.

Preparing, copying,
assembling, and sending
the form to the IRS . . . . . . .

1 hr., 25 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.