U.S. Individual Income Tax Return Forms

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2024

Instructions for Form 8835

Department of the Treasury
Internal Revenue Service

Renewable Electricity Production Credit

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

Future Developments

For the latest information about developments related to
Form 8835 and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form8835.

Reminders

Credit amounts. The Inflation Reduction Act of 2022
(IRA 2022) changed the manner in which section 45 credit
amounts are calculated on the sale of electricity produced
in any qualified facility placed in service after December
31, 2021. For more information, see Notice 2023-51,
available at IRS.gov/irb/2023-30_IRB#NOT-2023-51.

Credit reduced for tax-exempt bonds. Section 45(b)(3)
modified the credit rate reduction for grants, subsidized
energy financing, and other credits, and changed the
computation. See Credit Reduced for Tax-Exempt Bonds,
later.
Tax-exempt and governmental entities. Applicable
entities (such as certain tax-exempt and governmental
entities) can elect to treat the renewable electricity
production credit as a payment of income tax. See
Applicable entities, later.

Credit transfers. Eligible taxpayers, partnerships, and S
corporations can elect to transfer all or part of the credit
amount otherwise allowed as a general business credit to
an unrelated third-party buyer in exchange for cash.
Eligible taxpayers don't include applicable entities. See
Credit transfers, later.
Pre-filing registration. The IRS has established a
pre-filing registration process that must be completed prior
to electing payment or transfer of the renewable electricity
production credit. See Pre-filing registration requirement
for payment or transfer, later.

General Instructions

Purpose of Form

Use a separate Form 8835 to claim the credit for electricity
that you produced from certain renewable resources at
each qualified facility. Complete Part I to report information
on qualified property or a qualified facility. Complete Part II
to calculate the credit. The credit is allowed only for the
sale of electricity produced in the United States or U.S.
territories from qualified energy resources at a qualified
facility.
Taxpayers, applicable entities, partnerships, and S
corporations must file a separate form for each qualified
facility that is used in your trade or business to claim the
credit. All others are generally not required to complete or
file this form if their only source for this credit is from a

Sep 17, 2024

partnership, S corporation, estate, trust, or cooperative.
Instead, they can report their share of the credit directly on
Form 3800, General Business Credit. The following
exceptions apply.
• You are an estate or trust and the source credit can be
allocated to beneficiaries. For more details, see the
instructions for Form 1041, Schedule K-1, box 13, code J.
• 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, Schedule J, line 5c.

Election To Treat a Qualified Facility as Energy
Property

Section 48(a)(5) provides an irrevocable election to treat
qualified property (described in section 48(a)(5)(D)) that is
part of a qualified investment credit facility (described in
section 48(a)(5)(C)) as energy property eligible for the
investment credit (reported on Form 3468, Investment
Credit, Part VI) instead of a production credit reportable
on this form. This election applies to a facility:
• That is a qualified facility under section 45(d)(1), (2),
(3), (4), (6), (7), (9), or (11) that is placed in service after
2008 and the construction of which begins before 2025.
See Construction of a Qualified Facility, later;
• For which no credit has been allowed under section 45;
and
• For which a taxpayer has made an irrevocable election
to treat the facility as energy property.
See Notice 2009-52 and the Instructions for Form 3468
for information on making the election. Notice 2009-52 is
available at IRS.gov/irb/2009-25_IRB/ar09.html.

Coordination With Department of Treasury
Grants

If a grant is paid under the American Recovery and
Reinvestment Act of 2009, section 1603 grant, for placing
into service specified energy property (described in
section 1603(d)), no production credit under section 45, or
investment credit under section 48, is allowed for the
property for the tax year in which the grant is made or any
subsequent tax year. See section 48(d) for more
information.
You may not partition the basis of property for which a
section 1603 grant was received and claim a production
credit under section 45 or investment credit under section
48 for any part of the basis of that property. However, you
must reduce the basis of the specified energy property by
50% of the amount of the actual section 1603 grant.
You may have to refigure the investment credit and
recapture all or a portion of it if a section 1603 grant was
made for section 48 property for which a credit was
allowed for progress expenditures before the grant was
made. Recapture is applicable to those amounts
previously included in the qualified basis for an energy
credit, including progress expenditures, that are also the
basis for the section 1603 grant.

Cat. No. 55349M

How To Figure the Credit

Generally, the credit for electricity produced from qualified
energy resources at a qualified facility during the 10-year
period beginning on the date the facility was originally
placed in service, and sold by you to an unrelated person
during the tax year (see Definitions, later), is:
• 0.3 cents per kilowatt-hour (kWh) for a qualified facility
placed in service after 2021, or
• 1.5 cents per kWh for a qualified facility placed in
service before 2022.

Elective Payment of Certain Business Credits Under
Section 6417 or Section 48D in the Instructions for Form
3800.
Your election to treat the credit as a payment generally
applies to 2023 and any subsequent year during the
10-year period described in section 45(a)(2)(A)(ii) for such
facility. You must obtain an IRS-issued registration number
for the facility in 2023 and each of the succeeding years.

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The credit for electricity produced is proportionately
phased out over a 3-cent range when the reference price
exceeds the 8-cent threshold price. The 0.3 or 1.5 cent
credit rate and the 8-cent threshold price are adjusted for
inflation. The reference price and the inflation adjustment
factor (IAF) for each calendar year are published during
the year in the Federal Register. If the reference price is
equal to or less than the threshold price (adjusted by the
IAF), there is no reduction. For electricity produced, if the
reference price is 3 cents or more over the adjusted
threshold price, there is no credit; if the reference price is
more than the threshold price, but less than 3 cents over
the adjusted threshold price, there is a phaseout
adjustment on line 3 (Part II). For more information, see
Federal Register 2024-15226.

Credit rates. For calendar year 2024, the effective credit
rate for electricity produced and sold is:
• Qualified facilities placed in service before 2022.
From qualified energy resources of wind, closed-loop
biomass, and geothermal energy, 2.9 cents per kWh; and
1.5 cents per kWh on the sale of electricity produced from
the qualified energy resources of open-loop biomass,
landfill gas, trash, qualified hydropower, and marine and
hydrokinetic energy.
• Qualified facilities placed in service after 2021.
From qualified energy resources of wind, closed-loop
biomass, geothermal energy, and solar energy, 0.6 cents
per kWh; and 0.3 cents per kWh on the sale of electricity
produced from the qualified energy resources of
open-loop biomass, landfill gas, trash, qualified
hydropower, and marine and hydrokinetic renewable
energy.
• Qualified facilities placed in service after 2022.
From qualified energy resources of qualified hydropower
and marine and hydrokinetic renewable energy, 0.6 cents
per kWh.

Applicable entities. Applicable entities (as defined
under section 6417(d)(1)(A)) that generally don't benefit
from income tax credits can elect to treat the renewable
electricity production credit for a facility originally placed in
service after December 31, 2022, as a payment of income
tax. Resulting overpayments may result in refunds.
Applicable entities making the elective payment
election for the renewable electricity production credit
must file the following:
• Form 8835 and any applicable attachments;
• Form 3800, General Business Credit; and
• Form 990-T, Exempt Organization Business Income Tax
Return, or other applicable income tax return.
For a discussion of what is an applicable entity, see
Applicable entity making EPE on IRA 2022 credits in the
Instructions for Form 3800. For more information on
elective payment elections under section 6417, see
2

Credit transfers. Under section 6418, eligible taxpayers,
partnerships, and S corporations can elect to transfer all
or part of the credit figured in Part II to an unrelated
third-party buyer in exchange for cash. For more
information on credit transfers, see Transfer of Eligible
Credits Under Section 6418 in the Instructions for Form
3800.

Pre-filing registration requirement for payments or
transfers. Before you file your tax return, if you intend to
make an elective payment election or transfer election on
Form 3800 for the credit figured in Part II, you must
complete a pre-filing registration for each facility. To
register, go to IRS.gov/Credits-Deductions/Register-forElective-Payment-or-Transfer-of-Credits. See Pub. 5884,
Inflation Reduction Act (IRA) and CHIPS Act of 2022
(CHIPS) Pre-filing Registration Tool, for more information.
Also see Registering for and Making EPEs and Transfer
Elections in the Instructions for Form 3800.

Definitions
Construction of a Qualified Facility

Two methods can be used to establish that construction of
a qualified facility has begun.
1. Physical Work Test is satisfied when physical work
of a significant nature begins and other requirements are
met.
2. Five Percent Safe Harbor is satisfied when a
taxpayer pays or incurs (within the meaning of Regulations
sections 1.461-1(a)(1) and (2)) 5% or more of the total
cost of the facility and meets certain other requirements.

In establishing the beginning of construction under
either method, taxpayers must demonstrate either
continuous construction or continuous efforts towards
placing the facility in service. A taxpayer that places a
qualified facility in service no more than 4 calendar years
after the calendar year during which construction of the
qualified facility began will be deemed to have satisfied
this requirement. See Notice 2016-31 for more details.
Certain facilities may qualify for a longer period in which
they must be placed in service due to significant national
security concerns, developmental delays caused by the
COVID-19 pandemic, or Offshore and Federal Land
Projects. See Notice 2019-43, Notice 2020-41, Notice
2021-05, and Notice 2021-41 for more details.
Resources means wind, closed-loop biomass,
open-loop biomass, geothermal energy, solar energy,
municipal solid waste, qualified hydropower production,
and marine and hydrokinetic renewables.
Closed-loop biomass is any organic material from a
plant that is planted exclusively for use at a qualified
facility to produce electricity.
Instructions for Form 8835 (2024)

Open-loop biomass is solid, nonhazardous, cellulosic
waste material; lignin material; or agricultural livestock
waste nutrients, as defined in section 45(c)(3). See Notice
2008-60, 2008-30 I.R.B. 178, for rules related to
open-loop biomass, including an expanded definition of a
qualified facility and rules related to sales.
Geothermal energy is energy derived from a
geothermal deposit, as defined by section 613(e)(2).

• Open-loop biomass facility that is a new unit placed in
service after October 3, 2008, in connection with a facility
described in section 45(d)(3)(A), but only to the extent of
the increased amount of electricity produced at the facility
by reason of the new unit.
• Geothermal facility originally placed in service after
October 22, 2004, the construction of which begins before
2025. The facility doesn't include any property described
in section 48(a)(3), the basis of which is taken into
account by you for purposes of determining the energy
credit under section 48.
• Effective for solar energy facilities placed in service
after 2021 for a facility using solar energy to produce
electricity originally placed in service after October 22,
2004, the construction of which begins before 2025. The
facility doesn't include any property described in section
48(a)(3), the basis of which is taken into account by you
for purposes of determining the energy credit under
section 48.
• Landfill gas or trash facility using municipal solid waste
originally placed in service after October 22, 2004, the
construction of which begins before 2025.
• Hydropower facility producing incremental hydroelectric
production attributable to efficiency improvements or
additions to capacity described in section 45(c)(8)(B)
placed in service after August 8, 2005, that will be treated
as placed in service before 2025, if the construction of the
improvement or addition begins before 2025, and any
other facility producing qualified hydroelectric production
described in section 45(c)(8) placed in service after
August 8, 2005, the construction of which begins before
2025.
• Marine and hydrokinetic renewable energy facility
originally placed in service on or after October 3, 2008,
the construction of which begins before 2025.

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Municipal solid waste is solid waste, as defined
under paragraph 27 of 42 U.S.C. 6903. Municipal solid
waste doesn't include paper that is commonly recycled
and that has been segregated from other solid waste (as
so defined).

Hydropower production means the incremental
hydropower production for the tax year from any
hydroelectric dam placed in service on or before August 8,
2005, and the hydropower production from any
nonhydroelectric dam described in section 45(c)(8)(C).

Marine and hydrokinetic renewable energy means
energy derived from waves, tides, and currents in oceans,
estuaries, and tidal areas; free-flowing water in rivers,
lakes, and streams; free-flowing water in an irrigation
system, canal, or other man-made channel, including
projects that utilize nonmechanical structures to
accelerate the flow of water for electric power production
purposes; or differentials in ocean temperature (ocean
thermal energy conversion). See section 45(c)(10)(B) for
exceptions.

Qualified Facilities

Note. IRA 2022 generally provides that the amendments
to section 45 apply to facilities placed in service after
2021. See section 13101(k) of P.L. 117-169.
A qualified facility is any of the following facilities owned
by you and used to produce electricity.
• Wind facility originally placed in service after 1993, the
construction of which begins before 2025. This doesn't
include any facility for which any qualified small wind
energy property expenditure (as defined in section 25D(d)
(4)) is used in determining the residential clean energy
credit.
• Closed-loop biomass facility originally placed in service
after 1992, the construction of which begins before 2025.
• Closed-loop biomass facility modified to co-fire with
coal or other biomass (or both), owned by the taxpayer
and originally placed in service before 2025. The
modification must be approved under the Biomass Power
for Rural Development Programs or be part of a pilot
project of the Commodity Credit Corporation as described
in 65 Fed. Reg. 63052. The facility will be treated as
modified before 2025, if the construction of the
modification begins before 2025.
• Closed-loop biomass facility that is a new unit placed in
service after October 3, 2008, in connection with a facility
described in section 45(d)(2)(A)(i), but only to the extent
of the increased amount of electricity produced at the
facility by reason of the new unit.
• Open-loop biomass facility using cellulosic waste, the
construction of which begins before 2025.
• Open-loop biomass facility using agricultural livestock
waste nutrients originally placed in service after October
22, 2004, the construction of which begins before 2025,
and the nameplate capacity rating isn't less than 150
kilowatts.
Instructions for Form 8835 (2024)

A qualified facility doesn't include:
1. A landfill gas facility using municipal solid waste to
produce electricity if the production from that facility is
allowed as a credit under section 45K.
2. A facility that produces electricity from gas
produced by qualified biogas property (as defined in
section 48(c)(7)) if a credit is allowed under section 48
with respect to such property for the tax year or any prior
tax year.

3

Credit Period

Eligible electricity production
activity:
Wind

Credit period for facilities
placed in service after August
8, 2005 (years from
placed-in-service date):
10

Prevailing Wage and Apprenticeship
Requirements
Prevailing Wage Requirements

To meet the prevailing wage requirements with respect to
any qualified facility, a taxpayer must ensure that any
laborers and mechanics employed by the taxpayer or any
contractor or subcontractor in:
• The construction of such facility, and
• The alteration or repair of such facility (with respect to
any tax year, for any portion of such tax year that is within
the 10-year period beginning on the date the qualified
facility is originally placed in service), are paid wages at
rates not less than the prevailing rates for construction,
alteration, or repair of a similar character in the locality in
which such facility is located as most recently determined
by the Secretary of Labor, in accordance with Subchapter
IV of chapter 31 of title 40, U.S.C. Section 45(b)(7)(B)
provides correction and penalty mechanisms for a
taxpayer's failure to satisfy the requirements under section
45(b)(7)(A).

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Closed-loop biomass

10

Open-loop biomass (including
agricultural livestock waste
nutrient facilities)

10

Geothermal

10

Solar

10

Municipal solid waste (including
landfill gas facilities and trash
combustion facilities)

10

Qualified hydropower

10

Marine and hydrokinetic

10

United States and U.S. territories include the seabed
and subsoil of those submarine areas that are adjacent to
the territorial waters over which the United States has
exclusive rights according to international law.

Credit Reduced for Tax-Exempt Bonds

The credit rate reduction for grants, subsidized energy
financing, and other credits was modified. As a result, the
credit is reduced by an amount that is the product of the
credit amount otherwise determined for the tax year and
the lesser of 15% or a fraction. The numerator of the
fraction is the sum, for the tax year and all prior tax years,
of proceeds of an issue of any obligations the interest on
which is exempt from tax under section 103 and that is
used to provide financing for the qualified facility as of the
close of the tax year. The denominator of the fraction is
the aggregate amount of additions to the capital account
for the qualified facility for the tax year and all prior tax
years as of the close of the tax year.

Who Can Take the Credit

Generally, the owner of the facility is allowed the credit. In
the case of closed-loop biomass facilities modified to
co-fire with coal, other biomass, or both, and open-loop
biomass facilities, if the owner isn't the producer of the
electricity, the lessee or the operator of the facility is
eligible for the credit.

Increased Credit Amount for Qualified Facilities

In the case of any qualified facility that satisfies one of the
following requirements below, the amount of the credit
determined will be equal to such amount multiplied by 5.
• A facility with a maximum net output of less than 1
megawatt (as measured in alternating current).
• A facility the construction of which began prior to
January 29, 2023. See Notice 2022-61, available at
IRS.gov/irb/2022-52_IRB#NOT-2022-61.
• A facility that satisfies the prevailing wage and
apprenticeship requirements.

4

Apprenticeship Requirements

To meet the apprenticeship requirements, taxpayers must
ensure that, with respect to the construction of any
qualified facility, not less than the applicable percentage of
the total labor hours of the construction, alteration, or
repair work (including such work performed by any
contractor or subcontractor) with respect to such facility is,
subject to section 45(b)(8)(B), performed by qualified
apprentices (apprenticeship labor hour requirements).
The apprenticeship requirements include three
components: a labor-hours requirement, a ratio
requirement, and a participation requirement.
• The taxpayer must ensure that, depending on when
construction began, 12.5% or 15% of the total labor-hours
performed in the construction, alteration, or repair of the
facility are performed by qualified apprentices from a
registered apprenticeship program.
• The taxpayer must ensure that the applicable ratio of
apprentices to journeyworkers established by the
registered apprenticeship program are met for apprentices
working on the facility each day.
• Any taxpayer (or contractor or subcontractor) that
employs 4 or more laborers or mechanics in the
construction, alteration, or repair of the facility must also
hire at least one qualified apprentice.
Beginning of construction. A facility must meet the
prevailing wage and apprenticeship requirements to
receive the increased credit under section 45 if
construction of the facility began on or after January 29,
2023.
Establishing beginning of construction. Two methods
can be used to establish when construction of a qualified
project has begun.
• Physical Work Test is satisfied when physical work of a
significant nature begins and other requirements are met.
• Five Percent Safe Harbor is satisfied when a taxpayer
pays or incurs 5% or more of the total cost of the qualified
project and meets other requirements.
See Notice 2022-61, available at IRS.gov/irb/
2022-52_IRB#NOT-2022-61 for more information.

Instructions for Form 8835 (2024)

Domestic Content Bonus Credit Amounts

For qualified facilities placed in service after 2022, an
additional bonus credit equal to 10% of the amount is
provided for projects that meet a domestic content
requirement. The domestic content bonus requires that
certain steel, iron, and manufactured products used in the
facility be domestically produced. The taxpayer needs to
certify that any steel, iron, or manufactured product that is
a component of the qualified facility (upon completion of
construction) was produced in the United States (as
determined under section 661 of Title 49, CFR). See
Notice 2023-38, available at IRS.gov/irb/
2023-22_IRB#NOT-2023-38 for more information about
the domestic bonus credit guidance, including the
Domestic Content Certification Statement.

Lines 3a and 3b

Enter the address of the facility. If the facility does not have
an address, enter the coordinates of the facility or property
(longitude and latitude) on line 3b.

Line 4

Enter the date construction began. See Establishing
beginning of construction, earlier, and Notice 2022-61,
available at IRS.gov/irb/2022-52_IRB#NOT-2022-61 for
more information.

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Energy Community

For qualified facilities placed in service after 2022, if a
facility is located in an energy community, the credit is
increased by 10%. Energy community means (a) a
brownfield site; (b) a metropolitan or non-metropolitan
statistical area that has or had at any time during the
period beginning in 2010, 0.17% or more direct
employment or 25% or greater local tax revenues related
to the extraction, processing, transport, or storage of coal,
oil, or natural gas, and has an unemployment rate at or
above the national average unemployment rate for the
previous year; or (c) a census tract in which after
December 31, 1999, a coal mine has closed, or after
December 31, 2009, a coal-fired electric generating unit
has been retired, or a census tract directly adjoining to any
such census tract.
See Notice 2023-29, available at IRS.gov/irb/
2023-29_IRB#NOT-2023-29, Notice 2023-45, available at
IRS.gov/irb/2023-45_IRB#NOT-2023-45, and Notice
2023-47, available at IRS.gov/irb/
2023-47_IRB#NOT-2023-47, for more information about
the energy community bonus credit guidance under
section 45.

Specific Instructions

Part I—Information on Qualified Property or
Qualified Facility

If you are claiming a production credit for a qualified facility
that uses qualified resources to produce electricity on Part
II, lines 1a–1j, you must complete Part I, Information on
Qualified Property or Qualified Facility.

Line 1

If applicable, enter your pre-filing registration number for
the facility that you received from the IRS. See Pre-filing
registration requirement for payments or transfers, earlier.

Lines 2a and 2b

Enter a technical description of the facility or property that
is an integral part of such facility that uses qualified
resources to produce electricity. If the owner of the facility
is different from the filer, also include the owner’s name
and taxpayer identification number.

Instructions for Form 8835 (2024)

Line 8

Check the appropriate box on line 8 and attach the
required information to your timely filed return (including
extensions) to claim the increased credit amount for the
qualified facilities. You must attach a separate statement
for each qualified facility.

Additional information for increased credit amount. If
you checked the “Yes” box in Part I, question 8a, 8b, or 8c,
and entered an increased credit amount on Part II, line 9,
you must also attach a statement to Form 8835 that
includes the following information.
1. Your name and taxpayer identification number and
the facility description (including owner information, if
different from filer) and the IRS-issued registration number
(if applicable) from Part I.
2. If you checked box 8a, a statement that the facility
or property has a maximum net output of less than 1
megawatt (as measured in alternating current).
3. If you checked box 8b, a statement that you met the
Continuity Requirement under the Physical Work Test or
the Five Percent Safe Harbor to establish the beginning of
construction (alteration or repairs) before January 29,
2023.
4. If you checked box 8c, include the following.
a. The location and type of the qualified facility.
b. The applicable wage determinations (as defined
below) for each classification of laborer and mechanic
who performed work on the construction, alteration, or
repair of the facility.
c. The wages paid (including any correction payments
as defined in section 45(b)(7)(B)(i)(I)) and hours worked
for each of the laborer or mechanic classifications
engaged in the construction, alteration, or repair of the
facility.
d. The number of laborers and mechanics who
received correction payments as the result of any failure to
pay the applicable prevailing wage rates.
e. The amount of penalty payments owed with respect
to any failures to pay the applicable prevailing wage rates.
f. The wages paid and hours worked by qualified
apprentices for each of the laborer or mechanic
classifications engaged in the construction of the facility.
g. The total labor hours for the construction of the
project by any laborer or mechanic employed by the
taxpayer or any contractor or subcontractor.
h. The amount of hours for which you claim to have
satisfied the apprenticeship requirements under the
good-faith effort exception.

5

i. The amount of penalty payments owed with respect
to any failure to meet the labor-hours requirement or the
participation requirement.
5. A declaration, applicable to the statement and any
accompanying documents, signed by you, or signed by a
person currently authorized to bind you in such matters, in
the following form: “Under penalties of perjury, I declare
that I have examined this statement, including
accompanying documents, and to the best of my
knowledge and belief, the facts presented in support of
this statement are true, correct, and complete.”

Notice 2023-45; and Notice 2023-47 for details and more
information.

Part II—Renewable Electricity Production

Figure any renewable electricity credit from your trade or
business in Part II, lines 1–13. Skip lines 1–13 if you are
only claiming a credit that was allocated to you from an S
corporation, partnership, cooperative, estate, or trust.

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Applicable wage determinations. Applicable wage
determinations are the wages listed for a particular
classification of laborer or mechanic for the type of
construction and the geographic area, or other applicable
wage as determined by the Secretary of Labor. See
Notice 2022-61, available at IRS.gov/irb/
2022-52_IRB#NOT-2022-61, for more information.

Line 9

If you checked line 9a to claim the domestic content
bonus credit amount on Part II, line 10, you must also
attach the domestic content certification statement below
to Form 8835 with your return.

See Domestic Content Bonus Credit Amounts and
Notice 2023-38, available at IRS.gov/irb/
2023-22_IRB#NOT-2023-38, for guidance with respect to
the domestic content requirement.

Domestic Content Certification Statement

You must attach a statement to Form 8835 for each
Applicable Project in the year placed in service and a copy
of the certification statement in each of the succeeding tax
years. The certification statement must include the
following information for the Applicable Project.
1. Your name and taxpayer identification number
shown on the return.
2. The facility description (including owner information,
if different from filer) and the IRS-issued registration
number (if applicable) of the Applicable Project from Part I.
3. A statement that any steel, iron, or manufactured
product that is a component of the facility (upon
completion of construction) was produced in the United
States (as determined under section 661 of Title 49, Code
of Federal Regulations).
4. A declaration, applicable to the statement and any
accompanying documents, signed by you, or signed by a
person currently authorized to bind you in such matters, in
the following form: “Under penalties of perjury I declare
that I have examined the information contained in this
Domestic Content Certification Statement, and to the best
of my knowledge and belief, it is true, correct, and
complete.”

Line 10

Section 45(b)(11) provides an energy community bonus
credit amount for a qualified facility by increasing the
credit amount by 10% if the qualified facility is located in
an energy community.
See Energy Community, earlier, and Notice 2023-29,
available at IRS.gov/irb/2023-29_IRB#NOT-2023-29;
6

Fiscal year taxpayers. If you have sales in 2024 and
2025 and the credit rate on line 1 (or the phaseout
adjustment on line 3) is different for 2025, make separate
calculations for each line. Use the respective sales, credit
rate, and phaseout adjustment for each calendar year.
Enter the total of the calculation on the credit rate line
(line 1) or the phaseout adjustment line (line 3). Attach the
calculations to Form 8835 and write “FY” in the margin.

Line 1

Enter the kilowatt-hours of electricity produced at the
applicable qualified facilities and multiply by the applicable
rate. See Credit rates, earlier. Fiscal year filers with 2025
sales may have to refigure line 1, as explained under
Fiscal year taxpayers above.

Line 3

Calendar year filers enter -0- on line 3. Fiscal year filers
with sales in 2025 also enter -0- if the published 2025
reference price is equal to or less than the 2025 adjusted
threshold price. See How To Figure the Credit, earlier, to
figure the adjustment.

Lines 5a–5d

The amounts for any tax year will be determined as of the
close of the tax year. The credit reduced for tax-exempt
bonds, as described earlier, reflects IRA 2022
amendments applicable to facilities, whose construction
began after August 16, 2022.

Line 9

If you checked the line 8a, 8b, or 8c box in Part I, multiply
the amount on Part II, line 8, by 5.0. See Additional
information for increased credit amount, earlier.

Line 10

If you checked the line 9a box in Part I, multiply the
amount on Part II, line 9, by 10%. See Domestic Content
Certification Statement, earlier.

Line 11

If you checked the line 10a box in Part I, multiply the
amount on Part II, line 9, by 10%. See Energy Community,
earlier.

Line 13
Elective payment phaseout for applicable entities. If
you are making an elective payment election under
section 6417 for a facility whose construction began in
calendar year 2024, and the facility does not satisfy the
rules of section 45(b)(9)(B) or does not have a maximum
net output of less than 1 megawatt (as measured in
alternating current (ac)), multiply line 12 by 90% (0.90).
Exception to elective payment phaseout. For
facilities whose construction began during calendar year
2024, Notice 2024-09 provides transitional procedures to
Instructions for Form 8835 (2024)

claim the statutory exceptions to the elective payment
phaseout related to the domestic content requirement.
To substantiate your claim of exception to the elective
payment phaseout, you must complete and attach a
statement to Form 8835. The statement must say, under
penalties of perjury, that you have reviewed the
requirements for the increased cost exception and the
non-availability exception under section 45(b)(10)(D), and
have made a good-faith determination that the qualified
facility meets the requirements for the increased cost
exception and/or the non-availability exception, as
applicable. The statement must be signed by a person
with the legal authority to bind the applicable entity in
federal tax matters. For more information, see Notice
2024-09.

the credit among the patrons of the cooperative. The
credit is allocated among the patrons eligible to share in
patronage dividends on the basis of the quantity or value
of business done with or for such patrons for the tax year.
If the cooperative is subject to the passive activity rules,
include on line 14 any renewable electricity credit from
passive activities disallowed for prior years and carried
forward to this year. Complete Form 8810, Corporate
Passive Activity Loss and Credit Limitations, to determine
the allowed credits that can be allocated to patrons. For
details, see the Instructions for Form 8810.
The cooperative is deemed to have made the election
by completing line 16, as applicable. However, the
election isn't effective unless (a) made on a timely filed
return (including extensions), and (b) the organization
designates the apportionment in a written notice mailed to
its patrons during the payment period described in section
1382(d) or on Form 1099-PATR.
If you timely file your return without making an election,
you can still make the election by filing an amended return
within 6 months of the due date of the return (excluding
extensions). Enter “Filed pursuant to section 301.9100-2”
on the amended return.
Once made, the election can’t be revoked.

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Line 14

On a separate Form 8835, enter “Credits From
Pass-Through Entities” on line 2a of Part I and report your
total distributive share from:
• Schedule K-1 (Form 1065), Partner’s Share of Income,
Deductions, Credits, etc., box 15 (code AB);
• Schedule K-1 (Form 1120-S), Shareholder’s Share of
Income, Deductions, Credits, etc., box 13 (code AB);
• Schedule K-1 (Form 1041), Beneficiary’s Share of
Income, Deductions, Credits, etc., box 13 (code J); and
• Form 1099-PATR, Taxable Distributions Received From
Cooperatives, box 12.

Partnerships and S corporations must enter the
passed-through credits on line 14. Also, estates and trusts
that can allocate the source credit to beneficiaries, and
cooperatives that can allocate the credit to patrons, must
enter the passed-through credits on line 14. Filers figuring
credits on earlier lines of Form 8835 must enter the
passed-through credits on line 14.

If you are not a filer described above, and your only
renewable election production credit are credits passed
through to you, you can report the credits directly on Form
3800, Part III, line 1f or line 4e, as applicable.
Partnerships and S corporations must always report on
line 14 the above credits related to renewable electricity
production. Also, estates and trusts that can allocate the
source credit to beneficiaries and cooperatives that can
allocate the credit to patrons must always report on line 14
the above credits related to renewable electricity
production. All other filers figuring a separate credit on
earlier lines must also report the above credits on line 14.
All others not using earlier lines to figure a separate credit
can report the above credits directly on Form 3800, Part
III, line 1f or line 4e.

Line 15

Partnerships and S corporations. If you are a(n)
partnership or S corporation electing to transfer energy
credit with respect to a facility or property (or portion
thereof) under section 6418(c), you must report the total
credit amount with respect to your facility on Form 3800,
Part III, line 1f or 4e and not on Schedule K.

Line 16
Cooperative election to allocate credit to patrons. A
cooperative described in section 1381(a) that is more than
50% owned by agricultural producers or by entities owned
by agricultural producers can elect to allocate any part of
Instructions for Form 8835 (2024)

Estates and trusts. Allocate the credit on line 15
between the estate or trust and the beneficiaries in the
same proportion as income was allocated and enter the
beneficiaries’ share on line 16.
If the estate or trust is subject to the passive activity
rules, include on line 14 any renewable electricity credit
from passive activities disallowed for prior years and
carried forward to this year. Complete Form 8582-CR,
Passive Activity Credit Limitations, to determine the
allowed credit that must be allocated between the estate
or trust and the beneficiaries. For details, see the
Instructions for Form 8582-CR.

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 section 6103.
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.

7

Recordkeeping . . . . . . . . . . . . . . . . . . . . .
Learning about the law or the form . . . . . . . .
Preparing and sending the form to the IRS . . .

10 hr., 45 min.
3 hr., 10 min.
3 hr., 29 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.

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8

Instructions for Form 8835 (2024)