Form 3800, General Business Credit

2013

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.

Future Developments

For the latest information about
developments related to Form 3800 and
its instructions, such as legislation
enacted after they were published, go to
www.irs.gov/form3800.

General Instructions
Generally, you are not required to
complete the source credit form
or attach it to Form 3800 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 III, is from
a partnership, S corporation, estate, trust,
or cooperative. The following exceptions
apply:
You are claiming the investment credit
(Form 3468) or the biodiesel and
renewable diesel fuels credit (Form 8864)
in Part III with box A or B checked.
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.

TIP

Who Must File

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

Carryback and
Carryforward of
Unused Credit
The carryforward may have to be
reduced in the event of any
CAUTION
recapture event (change in
ownership, change in use of property,
etc.). If a section 1603 grant is received,
the carryforward must be reduced to zero.
For further information, see Form 4255,
Recapture of Investment Credit.

!

If you cannot use part or all of your
general business credit because of the tax
liability limit (line 38 is less than the sum of
Part I, line 6, and Part II, lines 25 and 36),
carry the unused credit back one year. To
Nov 19, 2013

carry back an unused credit, file an
amended return (Form 1040X, Amended
U.S. Individual Income Tax Return, Form
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, later,
to determine which credits are allowed
first.
If you have an unused credit after
carrying it back 1 year, 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. The
energy credit must be recaptured in full if a
grant is paid under Public Law 111-5,
section 1603, for investment in energy
property that an energy credit was
previously claimed or for investment in
renewable energy property that an
election was made to treat the property as
energy property. Recapture is applicable
to those amounts previously constituting
the qualified basis for an energy credit,
including progress expenditures, that are
also the basis for the 1603 grant.
Recapture is accomplished as follows:
1. Any portion of the energy credit
related to that property that was used to
offset tax in a prior tax year must be added
to tax in the tax year the 1603 grant is
received. Recaptured tax is calculated on
Form 4255.
2. Any carryforward of the energy
credit related to that property is reduced to
Cat. No. 10622Q

zero to recapture the unused portion of the
credit.
See Form 4255 for any other recapture
event (change in ownership or change in
use of property, etc.).

Change in Filing or Marital
Status

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
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.
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 next.
Credits reported on line 2 of all Parts III
with boxes A, B, C, and D checked.
Credits reported on Part II, line 25.
Non-ESBC credits reported on line 5 of
all Parts III with boxes A, B, C, and D
checked.
ESBC credits reported on line 6 of all
Parts III with box G checked.
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.
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)
(Form 3468).
Qualifying therapeutic discovery project
credit (carryforward only).
Work opportunity credit (Form 5884).
Biofuel producer 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 employment credit
(Form 8844).
Renewal community employment credit
(carryforward only).
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).
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
(carryforward only).
Credit for small employer health
insurance premiums (Form 8941).
New hire retention credit
(carryforward only).
General credits from an electing large
partnership (Schedule K-1 (Form
1065-B)).
Although these credits are
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.

TIP

Specific Instructions
Complete and attach the appropriate
credit forms used to figure your current
year credit. See exceptions under General
Instructions, earlier.
Assembling Form 3800. To ensure
Form 3800 is correctly processed,
assemble Form 3800 in the following
order.
1. Page 1.
2. Page 2.
3. Part III with box I checked.
4. All Parts III with box A checked.
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5.
6.
7.
8.

All Parts III with box B checked.
Part III with box C checked.
Part III with box D checked.
Part III with box G checked.

Part I. Current Year Credit
for Credits Not Allowed
Against Tentative
Minimum Tax (TMT)
Complete all Parts III before
completing Part I and Part II. See
CAUTION
Part III. General Business Credits
or Eligible Small Business Credits for
more information.

!

Line 3

Enter the applicable passive activity credit
amount allowed from Form 8582-CR,
Passive Activity Credit Limitations, or
Form 8810, Corporate Passive Activity
Loss and Credit Limitations. The passive
activity credit amount allowed on line 3
only applies to the general business
credits not allowed against TMT from Part
I, line 2, plus any prior year unallowed
passive activity credit from general
business credits not allowed against TMT.
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 or Form 8810 for details.

Line 4

Enter the amount of all carryforwards to
2013 of unused credits that are reported
from line 2 of Part III with box C checked.
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 statement 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
carryforward allowed for that year.
Note. Individuals claiming the research
credit from a sole proprietorship or
pass-through entity do not include any
carryforward of that credit on line 4 before
computing the limitation on line 1c. Include
the carryforward when figuring the

research credit limitation on line 1c of any
Parts III with the applicable box A or B
checked. Then include the allowable
carryforward amount on line 4 and attach
the statement required above.

Line 5

Use line 5 only when you amend your
2013 return to carry back unused credits
from 2014. Enter the amount that is
reported from line 2 of Part III with box D
checked.
Note. Individuals claiming the research
credit from a sole proprietorship or
pass-through entity do not include any
carryback of that credit on line 5 before
computing the limitation on line 1c. Include
the carryback when figuring the research
credit limitation on line 1c of any Parts III
with the applicable box A or B checked.
Then include the allowable carryback
amount on line 5. See the instructions
for Part I, line 4, for the required
statement that must be attached to
your tax return.

Part II. Allowable Credit
Line 10b

Enter the total allowable credit, if any, from
your tax return as follows.

Individuals. The amount from Form
1040, lines 48 through 53 (Form 1040-NR,
lines 46 through 50). Do not include any
general business credit claimed on Form
3800, any prior year minimum tax, or any
credit claimed on Form 8912, Credit to
Holders of Tax Credit Bonds.
Estates and trusts. Enter the total of any
write-in credits from Form 1041,
Schedule G, line 2e.
Corporations. Enter the amount from
Form 1120, Schedule J, line 5b (or the
applicable line of your return).

general business credit, enter the amount
on line 17, and write “Sec. 383” or “Sec.
384” in the margin next to your entry on
line 17.

Line 18

Complete lines 18 through 26 if any of the
following apply.
An amount is entered for the
empowerment zone employment credit on
line 3 of Part(s) III with box A, B, C, or D
checked;
An amount is entered for the renewal
community employment credit on line 3 of
Part III with box C checked; or
If you have prior year unallowed
passive activity credit carryover for the
empowerment zone or renewal community
employment credit.
If any of the above apply, multiply
line 14 by 75% (.75).
All others, skip lines 18 through 25 and
enter zero on line 26.

Line 24

Enter the applicable passive activity credit
amount for the empowerment zone and
renewal community employment credit
allowed from Form 8582-CR or Form
8810. The passive activity credit amount
allowed on line 24 only applies to the
empowerment zone and renewal
community employment credit reported on
Part III, line 3, plus any prior year
unallowed passive activity empowerment
zone and renewal community employment
credit. See the instructions for the
applicable form for details.
See the instructions for Part I, line 3, for
the definition of a passive activity.

Line 33

Line 13

Enter the applicable passive activity credit
amount for general business credits
allowed against TMT and eligible small
business credits allowed from Form
8582-CR or Form 8810. See the
instructions for the applicable form for
details.

Line 17

The passive activity credit amount
allowed on line 33 only applies to the
general business credits from Part II,
line 32, plus any prior year unallowed
passive activity credit from general
business credits reported on Part III,
line 4, and eligible small business credit.

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.
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

See the instructions for Part I, line 3, for
the definition of a passive activity.

Line 34

Enter the amount of all carryforwards to
2013 of unused credits that are reported
from line 5 of Part III with box C checked
and line 6 of Part III with box G checked.
Note. Individuals claiming the research
credit from a sole proprietorship or
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pass-through entity do not include any
carryforward of that credit on line 34
before computing the limitation on line 1c.
Include the carryforward when figuring the
research credit limitation on line 1c of any
Parts III with the applicable box A or B
checked. Then include the allowable
carryforward amount on line 34. See the
instructions for Part I, line 4, for the
required statement that must be
attached to your tax return.

Line 35

Use line 35 only when you amend your
2013 return to carry back unused credits
from 2014. Enter the amount that is
reported from line 5 of Part III with box D
checked.
Note. Individuals claiming the research
credit from a sole proprietorship or
pass-through entity do not include any
carryback of that credit on line 35 before
computing the limitation on line 1c. Include
the carryback when figuring the research
credit limitation on line 1c of any Parts III
with the applicable box A or B checked.
Then include the allowable carryback
amount on line 35. See the instructions
for Part I, line 4, for the required
statement that must be attached to
your tax return.

Line 38

If line 38 is smaller than the sum of Part I,
line 6, and Part II, lines 25 and 36, see
Carryback and Carryforward of Unused
Credit, earlier.

Part III. General Business
Credits or Eligible Small
Business Credits

Complete a separate Part III for each box
checked. In addition, for each box A or B
checked, if you have a credit from more
than one source and one of the sources is
a pass-through entity, including a
cooperative (see Column (b), later), a
separate Part III is needed for each
pass-through entity for which you received
the same credit. As a result, one checkbox
could have multiple Parts III if you receive
a single credit from multiple pass-through
entities.

!

CAUTION

After you have completed all
necessary Parts III, complete Part
I, if necessary, then Part II.

Box A Through D and G

Check the box that identifies the credit
being reported.

Box I

Check box I if you are reporting credits on
more than one Part III with box A or B
checked. Part III with box I checked is
used to consolidate the amounts from all
Parts III with box A or B by combining the

amounts of each credit line from the Parts
III with these boxes checked.
A consolidated Part III is needed if
there is more than one Part III with box A
or B checked. More than one box A or B
means more than one individual letter box
(for example, if there is more than one
Parts III with box B checked, a
consolidated Part III is needed to reflect
the total of all the boxes B checked) or
more than one combination of letters (for
example, if there is a box A checked and a
box B checked, a consolidated Part III is
needed to reflect the total of boxes A and
B).

Column (b)

If you are reporting a credit from a
pass-through entity, you must enter that
pass-through entity's employer
identification number (EIN) under column
(b) for that credit.
If you are reporting a credit reported to
you on Form 1099-PATR, Taxable
Distributions Received From
Cooperatives, you must enter that
cooperative's EIN under column (b) for
that credit.
A separate Part III will be needed to
report the EIN of the pass-through entity,
including cooperatives, and the amount of
credit from that entity, if a credit is
received from more than one source and
one of the sources is a pass-through
entity, including a cooperative. Column (b)
is only completed for any Part III with box
A or B checked.

Limitation on Certain Credits
The aggregate amount from each credit
form is usually reported on the appropriate
line of Form 3800, Part III, for the
applicable boxes A and B, to reflect
self-generated credit sources and all
pass-through entity sources. However,
certain credits have limitations imposed.
They include:
Form 3468, Part III, line 12p – $4,000
limitation for qualified small wind energy
property (reported on line 4a);
Form 8826, line 8 – $5,000 limitation for
the overall credit (reported on line 1e);
Form 8881, line 5 – $500 limitation for
the overall credit (reported on line 1j);
Form 8882, line 7 – $150,000 limitation
for the overall credit (reported on line 1k);
Form 8909, line 23. See the Form 8909
instructions for information on the
limitation that applies (reported on
line 1q); and
Form 8931, line 8 – $2 million limitation
for the overall credit (reported on line 1v).
In situations where there is a limitation
on the credit amount, the limited amount
allowed is allocated pro rata and anything
above the limitation is lost.

Lines 1a and 4a

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 6 or line 36 in
excess of line 16 or line 29, respectively.
While any excess is allocated to patrons,
any credit recapture applies as if you as
the cooperative had claimed the entire
credit.
Note. Any carryforward of the qualifying
therapeutic discovery project credit may
be claimed on line 1a.

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 11 ×
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 2014. 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, earlier.

Line 1e

When reporting the disabled access credit
from Form 8826 on line 1e, do not enter
more than $5,000 in column (c) of Parts III
with box A or B checked, combined.

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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 32. All others: enter the
amount from Form 8835, line 10, and the
applicable part of the amount from Form
8835, line 30. Do not enter an amount
from Form 8835 that is included on Form
3800, line 4e.

Line 1j

When reporting the credit for small
employer pension plan startup costs from
Form 8881 on line 1j, do not enter more
than $500 in column (c) of Parts III with
box A or B checked, combined.

Line 1k

When reporting the credit for
employer-provided childcare facilities and
services from Form 8882 on line 1k, do not
enter more than $150,000 in column (c) of
Parts III with box A or B checked,
combined.

Line 1v

When reporting the agricultural chemicals
security credit from Form 8931 on line 1v,
do not enter more than $2 million in
column (c) of Parts III with box A or B
checked, combined.

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 1zz

Enter any carryforward to 2013 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.
Also use line 1zz to enter any
carryforward to 2013 of any unused credit
from general business credits no longer
covered on Form 3800 due to, and not
limited to, expiration of a tax provision.
The following list identifies these credits.
Trans-Alaska pipeline liability fund
credit.
Credit for employers affected by
Hurricane Katrina, Rita, or Wilma (Form
5884-A, Section A only).
Hurricane Katrina housing credit (Form
5884-A, Section B only).
Credit for affected Midwestern disaster
area employers (Form 5884-A, Section A
only).

Employer housing credit (Form 5884-A,
Section B only).
Enhanced oil recovery credit (Form
8830).
Credit for contributions to selected
community development corporations
(Form 8847).
Welfare-to-work credit (Form 8861).
New York Liberty Zone business
employee credit (Form 8884).
Only Part III with box C checked is to
be used with a line 1zz credit entry under
column (c). No EINs are required under
column (b).

report this credit on Form 990-T, Exempt
Organization Business Income Tax
Return.
If your only source of credit listed on
line 4h is from pass-through entities, you
are not required to complete or attach
Form 8941. Instead, enter the credit
directly on line 4h.
Eligible small employers (other than
tax-exempt eligible small employers) will
enter the credit from Form 8941, line 16 or
line 18.

Note. If an amount is entered on line 1zz,
see the instructions for Part I, line 4 for the
statement to attach.

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.

Line 3

Include any carryforward of the renewal
community employment credit on line 3.

Line 4h

Credit for Small Employer Health
Insurance Premiums (Form 8941):
Tax-exempt eligible small employers,
other than certain farmers' cooperatives,
do not report the credit for small employer
health insurance premiums on line 4h.
Eligible tax-exempt small employers will

See the Instructions for Form 8941 for
more information.

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

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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 . . . . . . .

30 hr., 51 min.

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

1 hr.

Preparing and sending
the form to the IRS . . . .

1 hr., 32 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.