U.S. Individual Income Tax Return

2010

Instructions for Form 3800

Department of the Treasury
Internal Revenue Service

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

to an eligible small business. However,
see Credits that are not ESBCs below.

What’s New

Credits that are not ESBCs. The
employer housing credit (reported on line
1t) and the new hire retention credit
(reported on line 1aa) are not ESBCs.

The Small Business Jobs Act of 2010
allows general business credits of eligible
small businesses to offset both regular
tax and alternative minimum tax (AMT) for
tax years beginning in 2010. Such eligible
small business credits (ESBCs)
determined in the first tax year in 2010
are carried back five years. For more
information, see Special Rules for Eligible
Small Business Credits (ESBCs).
The following new general business
credits are added:
• Line 1aa - New hire retention credit
(Form 5884-B).
• Line 29h - Credit for small employer
health insurance premiums (Form 8941).
The following general business credits
are no longer applicable and removed
from line 1:
• Welfare-to-work credit (Form 8861).
• Credit for contributions to selected
community development corporations
(Form 8847).

General Instructions
Who Must File
You must file Form 3800 to claim any of
the general business credits.
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 3.

Special Rules for Eligible
Small Business Credits
(ESBCs)
ESBCs. For tax years beginning in 2010,
ESBCs offset both regular tax and AMT.
Any unused ESBCs from 2010 are carried
back five years and are used to offset
regular tax and AMT in the carryback
years. Generally, ESBCs mean the sum
of the general business credits
determined for the tax year with respect

Eligible small business defined. For
purposes of the Small Business Jobs Act
of 2010, an eligible small business is:
• A corporation whose stock is not
publicly traded,
• A partnership, or
• A sole proprietorship.
The average annual gross receipts of
the corporation, partnership, or sole
proprietorship for the 3-tax-year period
preceding the tax year of the credits
cannot exceed $50 million. Gross receipts
for any tax year must be reduced by
returns and allowances made during the
year. Any reference to your business also
includes a reference to any predecessor
of your business.
If your business was not in existence
for the entire 3-year period, base your
average annual gross receipts on the
period your business existed. Also, if your
business had a tax year of less than 12
months, your gross receipts must be
annualized by multiplying the gross
receipts for the short period by 12 and
dividing the result by the number of
months in the short period.
Member of controlled group,
business under common control, or
affiliated group. For purposes of the
gross receipts test, all members of a
controlled group of corporations (as
defined in section 52(a)) and all members
of a group of businesses under common
control (as defined in section 52(b)), are
treated as a single person; and all
employees of the members of an affiliated
service group (as defined in sections
414(m) and (o) shall be treated as
employed by a single person.
Treatment of partners and S
corporation shareholders. General
business credits determined for a
partnership or S corporation cannot be
treated as ESBCs unless both the
partnership or corporation and partner or
shareholder meet the gross receipts test
as discussed under Eligible small
business defined above for the tax year
that the credits are treated as current year
general business credits.
Cat. No. 10622Q

Carryback and
Carryforward of Unused
Credit
If you cannot use part or all of your
general business 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 year (see Special
5-year carryback rule for ESBCs below).
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.
Special 5-year carryback rule for
ESBCs. To carry back unused ESBCs
determined in the first tax year beginning
in 2010, file an amended return (Form
1040X, Form 1120X, or other amended
return) for the prior tax year or an
application for tentative refund (Form
1045 or Form 1139). Write “SBJA 2012”
at the top of the form you use to file the
amended return.
Carry back any unused ESBC by
reporting it on the 2005 Form 6478, Credit
for Alcohol Used as a Fuel, line 9. Any
carryback of the ESBC not used in 2005
can be carried to 2006 (the next earliest
carryback year), and so on, by including
any remaining unused ESBC on the
following forms.
1. 2006 Form 6478, line 10.
2. 2007 Form 6478, line 10.
3. 2008 Form 6478, line 14.
4. 2009 Form 6478, line 13.
Enter “SBJA 2012” to the left of the
entry space used to include the unused
ESBC on each Form 6478.
Note. Except for ESBCs, 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, later, to determine which
credits are allowed first.

If you have an unused credit after
carrying it back 1 year (to each of the 5
preceding tax years, beginning with the
earliest, for ESBCs), 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.

Change in Filing or Marital
Status

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.

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.

Credit Ordering Rule

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

should be reported on this line).
• Credits reported on line 24 (the ESBC
amount is not reported on this line).
• Non-ESBC credits reported on line 30.
• ESBC credits reported on line 30.
Order in which credits are used. 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.

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.
If your general business credits
exceed your tax liability limit, the credits
are used in the following order and based
on the order shown under Order in which
credits are used below.

• Credits reported on line 8 (no ESBCs

• Investment credit (in the following

order — rehabilitation credit, energy credit,
qualifying advanced coal project credit,
qualifying gasification project credit,
qualifying advanced energy project credit,
and qualifying therapeutic discovery
project credit) (Form 3468).
• Work opportunity credit (Form 5884).

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• Alcohol and cellulosic biofuel fuels

credit (Form 6478).
• Credit for increasing research activities
(Form 6765).
• Low-income housing credit
(Form 8586, Part I only).
• Disabled access credit (Form 8826).
• Renewable electricity, refined coal, and
Indian coal production credit (Form 8835).
• Empowerment zone and renewal
community employment credit
(Form 8844).
• Indian employment credit (Form 8845).
• Employer social security and Medicare
taxes paid on certain employee tips
(Form 8846).
• Orphan drug credit (Form 8820).
• New markets credit (Form 8874).
• Credit for small employer pension plan
startup costs (Form 8881).
• Credit for employer-provided child care
facilities and services (Form 8882).
• Qualified railroad track maintenance
credit (Form 8900).
• Biodiesel and renewable diesel fuels
credit (Form 8864).
• Low sulfur diesel fuel production credit
(Form 8896).
• Distilled spirits credit (Form 8906).
• Nonconventional source fuel credit
(Form 8907).
• Energy efficient home credit
(Form 8908).
• Energy efficient appliance credit
(Form 8909).
• Alternative motor vehicle credit
(Form 8910).
• Alternative fuel vehicle refueling
property credit (Form 8911).
• Employer housing credit (Form 5884-A,
Section B only).
• Mine rescue team training credit
(Form 8923).
• Agricultural chemicals security credit
(Form 8931).
• Credit for employer differential wage
payments (Form 8932).
• Carbon dioxide sequestration credit
(Form 8933).
• Qualified plug-in electric drive motor
vehicle credit (Form 8936).
• Qualified plug-in electric vehicle credit
(Form 8834, Part I only).
• Credit for small employer health
insurance premiums (Form 8941).
• New hire retention credit
(Form 5884-B).
• General credits from an electing large
partnership (Schedule K-1 (Form
1065-B)).
Although these credits are
TIP aggregated on Form 3800, keep a
separate record of each credit,
including whether the credit was an
eligible small business credit, to ensure
proper accounting of the credits.

Specific Instructions

limitation separately for each sole
proprietorship or pass-through entity by
using the following formula:

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 Form 3800, Part I, 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 the 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

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 2011. 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.

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
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

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instructions for the applicable form for
details.

Line 6
Add all carryforwards to 2010 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 and attach the statement required
below.
Also include any carryforward to 2010
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 statement
with the following information.
• Show the tax year the credit originated,
the amount of the credit as reported on
the original return, and the amount
allowed for that year. Also state whether
the total carryforward amount was
changed from the originally reported
amount and identify the type of credit(s)
involved. If the revised carryforward
amount relates to unused additional
research credits, attach an additional
schedule detailing the changes to the
originally reported Form 6765 information
for all originating credit years applicable.
• For each carryback year, show the year
and the amount of the credit allowed after
you applied the carryback.
• For each carryforward year, show the
year and the amount of the credit allowed
after you applied the carryforward.

Line 7
Use line 7 only when you amend your
2010 return to carry back unused credits
from 2011. 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.

Line 8
Eligible small businesses claiming
ESBCs. Use the following steps to
complete line 8 if you are an eligible small
business claiming ESBCs.
Step 1. Add lines 4 through 7.
Step 2. Add only eligible small
business credits (see Special Rules for
Eligible Small Business Credits (ESBCs),
earlier) reported on lines 1a through 1bb.
Subtract any passive ESBCs from that
total. Then, add the passive activity
ESBCs allowed for 2010. This is the total
ESBCs for Part I. Do not enter this total
on line 8. Instead, in the bottom left
margin of page 1, write ‘‘SBC’’ and the
amount of ESBCs figured for Part I. Also
add this amount to the line 30 total.

Figure the current year passive activity
credit allowed by taking into account only
current year ESBCs. Prior year unallowed
passive activity credits are not allowed
when figuring the passive activity ESBCs
allowed for 2010.
Step 3. Subtract the amount in step (2)
from the amount in step (1) and enter the
result on line 8.

Part II. Allowable Credit
Line 12b
Enter the total credit, if any, from Form
1040, lines 48 through 52 (or Form
1040NR, lines 46 through 49); Form
8396, line 9; Form 8834, lines 22 and 29;
Form 8859, line 3; Form 8910, line 21;

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

Keep for Your
Records

This worksheet is for extension property only. See the Instructions for Form 8827 for
round 2 extension property.
Extension
property

1. Enter depreciation (including the special depreciation allowance)
that would have been allowed for extension property placed in
service during the tax year if section 168(k)(1) had applied to
such property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Enter depreciation for extension property 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 extension property 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 line 15 amount on your 2010 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. Enter the line 19 amount on your 2010 Form 8827, line
7b. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

13.
14.

15.
16.
17.
18.
19.

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Form 8911, line 23; Form 8936, line 14;
and Schedule R (Form 1040), line 22.

Line 15
See section 38(c)(6) 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 may
still have to compute the tentative
minimum tax (TMT) to figure your credit.
Enter zero on line 16 if:
• You are a small corporation exempt
from the AMT under section 55(e),
• The only general business credit you
are claiming is on line 29, or
• The only general business credits you
are claiming are ESBCs.
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
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 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. For tax year 2010, the election
applies to extension property only.
S corporations that make the election
to accelerate the credit can use the credit
only against the built-in gains tax. 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.
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 page 4.
Allocations of bonus depreciation
amounts to research credits may be
revoked only with the consent of the IRS.
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
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
www.irs.gov/irb/2008-44_IRB/ar15.html;
• Rev. Proc. 2009-16, 2009-6 I.R.B. 449,
available at
www.irs.gov/irb/2009-06_IRB/ar10.html;
and
• Rev. Proc. 2009-33, 2009-29 I.R.B.
150, available at
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,

-5-

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.

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

Line 24
Eligible small businesses. If you are
claiming an ESBC on Form 8844, do not
include the ESBC portion on line 24.
Instead, include the ESBC portion of the
credit on line 30.
All others. If you are not an eligible
small business, enter the amount from
Form 8844, line 10 or line 12.

Line 29h
Form 8941 filers:
• Tax-exempt eligible small employers,
other than certain farmers’ cooperatives,
do not report the credit for small employer
health insurance premiums on line 29h.
Eligible tax-exempt small employers will
report this credit on Form 990-T, Exempt
Organization Business Income Tax
Return (and proxy tax under section
6033(e)).
• Eligible small employers (other than
tax-exempt eligible small employers) will
enter the credit from Form 8941, line 22
or line 24.
See the Instructions for Form 8941 for
more information.

Line 30
Add lines 29a through 29h and increase
that amount by the sum of ESBCs, if
applicable, from the following lines.
• The amount written in the bottom left
margin of page 1 (see Line 8 on page 4);
and
• Any portion of the eligible small
business credit that was excluded on line
24 from Form 8844, line 10 or line 12 (see
Line 24 above).

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 . . . . . . . . .

18 hr., 53 min.

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

1 hr.

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

1 hr., 20 min.

-6-

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.