3800 Instructions for Form 3800

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2021

Instructions for Form 3800

Department of the Treasury
Internal Revenue Service

General Business Credit

Who Must File

DRAFT AS OF
October 21, 2021

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
IRS.gov/Form3800.

What’s New

Enhanced Oil Recovery Credit. The
section 43 enhanced oil recovery credit is
applicable for tax year 2021. See Notice
2021-47.

Reminder
Credit for small employer auto-enrollment for retirement savings and new
limitation for the small employer pension plan startup costs. The Further
Consolidated Appropriations Act, 2020,
added a new credit for the small employer
auto-enrollment for retirement savings and
increased the limit for the small employer
pension plan startup costs credit. The
credit and limit increase apply to tax years
beginning after 2019. See the instructions
for Part III, line 1j.

General Instructions
Partnerships and S corporations

TIP must always complete the source

credit form. All other filers whose
only source for a credit listed on Form
3800, Part III, is from a partnership, S
corporation, estate, trust, or cooperative
can report the credit directly on Form
3800. The following exceptions apply.

• You are claiming the investment credit

(Form 3468) or the biodiesel and
renewable diesel fuels credit (Form 8865)
in Part III with box A or B checked.
• You are an estate or trust and the
source credit must 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.
• You are a cooperative and the source
credit can or must be allocated to patrons.
For more details, see the instructions for
Form 1120-C, U.S. Income Tax Return for
Cooperative Associations, Schedule J,
line 5c.

Oct 19, 2021

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 can't use part or all of your
general business credit because of the tax
liability limit (Part II, line 38, is less than the
sum of Part I, line 6, and Part II, lines 25
and 36), carry the unused credit back 1
year. If the credit is for oil and gas
production from marginal wells, the
carryback period is 5 years. To carry back
an unused credit, file an amended return
(Form 1040-X, Amended U.S. Individual
Income Tax Return, Form 1120-X,
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.
No part of the unused credit for

TIP 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. A similar rule
applies to any “specified credit” carried
back to any tax year before the first tax
year for which that specified credit was
allowed against Tentative Minimum Tax
(TMT). See Credit Ordering Rule, later, to
determine which credits are allowed first.
If you have an unused credit after
carrying it back 1 year (5 years for a credit
from oil and gas production from marginal
wells), 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
Cat. No. 10622Q

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.

Figuring the carryforward if a payroll
tax credit election is made. Qualified
small businesses electing to claim a
portion of the research credit as a payroll
tax credit must adjust the research credit
carryforward for the amount of the credit
elected as a payroll tax credit on Form
6765.
The unused credit for the current year
is determined by reducing the amount on
Part I, line 6, and Part II, line 36, by the
amount on Form 6765, line 44. If you have
amounts on both Part I, line 6, and Part II,
line 36, the reduction is made
proportionately. No amount elected as a
payroll tax credit can be used to offset the
current year tax liability nor can it be
included in the carryforward or carryback
calculation.
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
zero to recapture the unused portion of the
credit.
See Form 4255 for any other recapture
event (change in ownership, change in
use of property, etc.).
Carryforward of certain Form 6478
credits. The alcohol mixture credit, the
alcohol credit, and the small ethanol

producer credit expired for fuels sold or
used after 2011. The unused alcohol
mixture credits, alcohol credits, and small
ethanol producer credits (for all tax years)
can't be carried to a tax year beginning
after 2014.

Change in Filing or Marital
Status

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

• Credit for small employer pension plan
startup costs (Form 8881).
• Credit for employer-provided childcare
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).
• Credit for oil and gas production from
marginal wells (Form 8904).
• Distilled spirits credit (Form 8906).
• Nonconventional source fuel credit
(carryforward only).
• Energy efficient home credit (Form
8908).
• Energy efficient appliance credit
(carryfoward only).
• 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
(carryforward only).
• Credit for employer differential wage
payments (Form 8932).
• Carbon oxide 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).
• Employee retention credit for employers
affected by qualified disasters (Form
5884-A).
• Employer credit for paid family and
medical leave (Form 8994).
• Credit for auto-enrollment (Form 8881).
• General credits from an electing large
partnership (carryforward only).

DRAFT AS OF
October 21, 2021

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

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.
• Specified credits other than Eligible
Small Business (ESB) credits reported on
line 5 of all Parts III with boxes A, B, C,
and D checked.
• ESB 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).
• Enhanced oil recovery credit (Form
8830).
• 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).
-2-

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.

Eligible Small Business

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 credit 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.
Instructions for Form 3800 (2021)

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.

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 Part I,
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.

Adjustment for the payroll tax credit.
A qualified small business that elected on
Form 6765 to claim a portion of its
research credit as a payroll tax credit must
reduce its research credit carryforward by
the amount elected as a payroll tax credit.

Line 5

Use Part I, line 5, only when you amend
your 2021 return to carry back unused
credits from 2022. Enter the amount that is
reported from line 2 of Part III with box D
checked.

DRAFT AS OF
October 21, 2021

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)) will be treated as
employed by a single person.
Treatment of partners and S
corporation shareholders. A partner or
S corporation shareholder cannot be
treated as an eligible small business
unless both the partnership or S
corporation and partner or shareholder
meet the gross receipts test as discussed
under Eligible Small Business, earlier, for
the tax year that the credit is treated as a
current year general business credit.

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.
5. All Parts III with box B checked.
6. Part III with box C checked.
7. Part III with box D checked.
8. 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, later,
for more information.

!

Instructions for Form 3800 (2021)

If no credits are allowed, enter zero on
line 3.

Passive activity. Generally, a passive
activity is a trade or business in which you
didn't 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
2021 of unused credits that are reported
from line 2 of Part III with box C checked.
Check the box. For each credit entered
on line 4, if the credit amount was
changed or revised from the amount
originally reported, check the box on this
line and see Required statement, below,
for the statement that must be attached to
identify the change or revision.
Required statement. 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 don't include any
carryforward of that credit on Part I, line 4,
before figuring the limitation on Part III,
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 Part I,
line 4, and attach the statement required
above.
-3-

Note. Individuals claiming the research
credit from a sole proprietorship or
pass-through entity don't include any
carryback of that credit on Part I, line 5,
before figuring the limitation on Part III,
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 Part I,
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. Enter the amount from Form
1040, 1040-SR, or 1040-NR, line 19, and
Schedule 3 (Form 1040), lines 2 through
6a. Don't 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, Part I, line 5b (or
the applicable line of your return).

Line 13

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 17
C 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 Part II, line 17, and write “Sec. 383” or
“Sec. 384” in the margin next to your entry
on Part II, line 17.

If no credits are allowed, enter zero on
line 33.

see Carryback and Carryforward of
Unused Credit, earlier.

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

Line 18

Enter the amount of all carryforwards to
2021 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.

Part III. General Business
Credits or Eligible Small
Business Credits

Complete Part II, 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.
• If you have prior year unallowed
passive activity credit carryover for the
empowerment zone or renewal community
employment credit.

Line 34

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
the same credit from multiple
pass-through entities.

DRAFT AS OF
October 21, 2021

If any of the above apply, multiply Part
II, line 14, by 75% (0.75).

All others, skip Part II, lines 18 through
25, and enter zero on Part II, 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 Part II, 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.
If no credits are allowed, enter zero on
line 24.
See the instructions for Part I, line 3, for
the definition of a passive activity.

Line 30

Enter the general business credit from
line 5 of Part III with box A checked. This
amount is the total specified credits other
than ESB credits allowed against TMT.

Line 33

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.
The passive activity credit amount
allowed on Part II, 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 the eligible small business
credit.

Check the box. For each credit entered
on line 34, if the credit amount was
changed or revised from the amount
originally reported, check the box on this
line and see Required statement in the
instructions for Part I, line 4, for the
statement that must be attached to identify
the change or revision.
Note. Individuals claiming the research
credit from a sole proprietorship or
pass-through entity don't include any
carryforward of that credit on Part II,
line 34, before figuring the limitation on
Part III, line 1c and line 4i. Include the
carryforward when figuring the research
credit limitation on line 1c and line 4i of
any Parts III with the applicable box A or B
checked. Then include the allowable
carryforward amount on Part II, line 34.
See the instructions for Part I, line 4,
for the required statement that must
be attached to your tax return.

Adjustment for the payroll tax
credit. A qualified small business that
elected on Form 6765 to claim a portion of
its research credit as a payroll tax credit
must reduce its research credit
carryforward by the amount elected as a
payroll tax credit.

Line 35

Use Part II, line 35, only when you amend
your 2021 return to carry back unused
credits from 2022. Enter the amount that is
reported from line 5 of Part III with box D
checked. You may not carry back
specified credits including ESB credits, to
any tax year before the first tax year for
which that specified credit was allowed
against TMT.
Note. Individuals claiming the research
credit from a sole proprietorship or
pass-through entity don't include any
carryback of that credit on Part II, line 35,
before figuring the limitation on Part III,
line 4i. Include the carryback when figuring
the research credit limitation on line 4i of
any Parts III with the applicable box A or B
checked. Then include the allowable
carryback amount on Part II, 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 Part II, line 38, is smaller than the sum of
Part I, line 6, and Part II, lines 25 and 36,
-4-

!

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. You must use a Part III with box I
checked to consolidate the amounts from
all Parts III with box A or B checked.
Consolidate the Parts III with box A or B
checked by combining the amounts for
each credit line on each Part III with box A
or B checked; then, enter the total for each
credit on the applicable line of the Part III
with box I checked.
A consolidated Part III is only needed
when 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
Part 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
Instructions for Form 3800 (2021)

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.
Don't enter an EIN under column
TIP (b) when completing Part III with
box C, D, or G checked.

Research credit limitation. If you are an
individual, the amount of the research
credit that may be included on Part III,
line 1c or line 4i, 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.

auto-enrollment for retirement savings
from Form 8881, add the amounts from
Form 8881, Part I, line 8, and Part II,
line 11, and enter on Part III, line 1j.

Line 1k

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

DRAFT AS OF
October 21, 2021

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 12x—$4,000
limitation for qualified small wind energy
property (reported on Part III, line 4a);
• Form 8826, line 8—$5,000 limitation for
the overall credit (reported on Part III,
line 1e);
• Form 8882, line 7—$150,000 limitation
for the overall credit (reported on Part III,
line 1k).
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 Part I, line 6, or Part
II, line 36, in excess of Part II, 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 Part III, line 1a.

Lines 1c and 4i
A qualified small business must
complete Form 3800 before
CAUTION completing Section D of Form
6765 if the payroll tax credit is being
claimed. See the instructions for Form
6765 for more details.

!

Eligible small businesses, enter your
research credit on line 4i. See the
definition of Eligible Small Business,
earlier. All others, enter your research
credit on line 1c.
Partners and S corporation
shareholders, see Treatment of partners
and S corporation shareholders under
Eligible Small Business, earlier.
Instructions for Form 3800 (2021)

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 can't 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 (adjusted for
any payroll tax credit claimed) of the credit
not used in prior years, and any carryback
of the credit from 2022. For information on
how to figure 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 can't claim any
research credit this year related to that
business.
If any of your research credit isn't
allowed to be used because of this
limitation, see Carryback and
Carryforward of Unused Credit, earlier.

Line 1d

Only the carryforward of unused credits
from prior years from Form 8586, Part I
(revisions prior to 2021), can be reported
on Part III, line 1d.

Line 1e

Line 1o

Only the carryforward of the
nonconventional source fuel credit from
Form 8907 can be reported on Part III,
line 1o.

Line 1q

Only the carryforward of the energy
efficient appliance credit from Form 8909
can be reported on Part III, line 1q.

Line 1t

Only the carryforward of the enhanced oil
recovery credit can be reported on Part III,
line 1t.

Line 1v

Only the carryforward of the agricultural
chemicals security credit from Form 8931
can be reported on Part III, line 1v.

Line 1x

The carbon dioxide sequestration credit is
renamed carbon oxide sequestration
credit. The credit was expanded to include
any carbon oxide. Any carryforward of the
carbon oxide sequestration (or carbon
dioxide sequestration) credit from Form
8933, Carbon Oxide Sequestration Credit,
can be reported on this line.

Line 1z

Only the carryforward of the qualified
plug-in electric vehicle credit claimed in
Part I, Section B, of 2009 through 2012
Form 8834 can be reported on Part III,
line 1z.

Line 1aa

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

The employee retention credit from Form
5884-A can be reported on Part III,
line 1aa. See the Instructions for Form
5884-A for more information.

Line 1f

Only the carryforward of the general
credits from an electing large partnership
can be reported on Part III, line 1bb.

Cooperatives, estates, and trusts, enter
the applicable part of the amount from
Form 8835, line 22. All others, enter the
applicable part of the amount from Form
8835, line 20. Don't enter an amount from
Form 8835 that is included on Form 3800,
Part III, line 4e.

Line 1j

When reporting the credit for small
employer pension plan startup costs and
-5-

Line 1bb

Line 1zz

Line 1zz is used to report the credit for oil
and gas production from marginal wells
and the carryforward of certain other
credits.
The credit for oil and gas production
from marginal wells. Enter the amount
from Form 8904, line 8, or from the

applicable line of your Schedule K-1. See
the Instructions for Form 8904 for more
information.
Carryforward of certain other credits.
Check box C and enter the amount in
column (c) to claim any carryforward to
2021 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 Part III, line 1zz, to enter any
carryforward to 2021 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 A only).
• Credit for affected Midwestern disaster
area employers (Form 5884-A, Section A
only).
• Employer housing credit (Form 5884-A,
Section B only).
• New hire retention credit (Form
5884-B).
• 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).
• Therapeutic drug credit (Form 8942).

Line 3

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

Lines 4a through 4z

Enter the amount of the specified credit on
the applicable line. See also the
instructions for lines 1c and 4i, earlier.

You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records relating
to a form or its instructions must be
retained as long as their contents may
become material in the administration of
any Internal Revenue law. Generally, tax
returns and return information are
confidential, as required by section 6103.

DRAFT AS OF
October 21, 2021

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

Line 4h

Credit for Small Employer Health
Insurance Premiums (Form 8941).
• Tax-exempt eligible small employers,
other than certain farmers' cooperatives,
don't report the credit for small employer
health insurance premiums on Part III,
line 4h. Eligible tax-exempt small
employers will report this credit on Form
990-T, Exempt Organization Business
Income Tax Return.
• If your only source of credit listed on
Part III, line 4h, is from pass-through
entities, you aren't required to complete or
attach Form 8941. Instead, enter the credit
directly on Part III, line 4h.
• Eligible small employers (other than
tax-exempt eligible small employers) will
enter the credit from Form 8941, line 16 or
line 18.
See the Instructions for Form 8941 for
more information.

Line 4z

This line is for future use only.

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.

-6-

The time needed to complete and file
this form will vary depending on individual
circumstances. The estimated burden for
individual and business taxpayers filing
this form is approved under OMB control
number 1545-0074 and 1545-0123 and is
included in the estimates shown in the
instructions for their individual and
business 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.

Instructions for Form 3800 (2021)