Instructions For Form 3468 - 2009 (Page 2 of 7) in pdf

b. The taxpayer retains a substantial interest in that trade or

business is incorporated in Delaware or Nevada and the

business.

lessor’s principal place of business is located in Little Rock, AR,

you should enter the Little Rock address.

A mere change in the form of conducting a trade or business

If the lessor receives its mail in care of a third party (such as

includes a corporation that elects to be an S corporation and a

an accountant or attorney), enter on the street address line “C/

corporation whose S election is revoked or terminated.

O” followed by the third party’s name and street address or P.O.

For more information, see the Instructions for Form 4255.

box.

See section 46(g)(4) (as in effect on November 4, 1990),

Qualifying Advanced Coal Project Credit

and related regulations, if you made a withdrawal from a

A qualifying advanced coal project is a project that:

capital construction fund set up under the Merchant

CAUTION

•

Uses advanced coal-based generation technology (as

Marine Act of 1936 to pay the principal of any debt incurred in

defined in section 48A(f)) to power a new electric generation

connection with a vessel on which you claimed investment

credit.

unit or to refit or repower an existing electric generation unit

(including an existing natural gas-fired combined cycle unit),

For details, see Form 4255, Recapture of Investment Credit.

•

Has fuel input which, when completed, will be at least 75

percent coal,

Specific Instructions

•

Has an electric generation unit or units at the site that will

generate at least 400 megawatts,

•

Do not attach this form to your tax return if you are (a)

Has a majority of the output that is reasonably expected to be

acquired or utilized,

an estate or trust whose entire qualified rehabilitation

•

expenditures or bases in energy property are allocated

Is to be constructed and operated on a long-term basis when

CAUTION

to the beneficiaries, (b) an S corporation, or (c) a partnership

the taxpayer provides evidence of ownership or control of a site

of sufficient size,

(other than an electing large partnership). However, you must

•

complete lines 10k and 10l of this form and attach it if you are

Will be located in the United States, and

•

the owner of a certified historic structure.

Includes equipment that separates and sequesters at least

65 percent (70 percent in the case of an application for

Shareholders of S Corporations,

reallocated credits) of the project’s total carbon dioxide

emissions for project applications described in section

Partners of Partnerships, and

48A(d)(2)(A)(ii).

Beneficiaries of Estates and Trusts

Basis. Qualified investment for any tax year is the basis of

If you are a shareholder, partner (other than a partner in an

eligible property placed in service by the taxpayer during the tax

year which is part of a qualifying advanced coal project. Eligible

electing large partnership), or beneficiary of the designated

property is limited to property which can be depreciated or

pass-through entity, the entity will provide to you the information

amortized and which was constructed, reconstructed, or

necessary to complete the following:

•

erected and completed by the taxpayer; or which is acquired by

The qualified investment in qualifying advanced coal project

the taxpayer if the original use of such property commences

property for lines 5a through 5c.

•

with the taxpayer.

The qualified investment in qualifying gasification project

property for lines 6a and 6b.

Basis reduction for certain financing. If property is financed

•

The qualified investment in qualifying advanced energy

in whole or in part by subsidized energy financing or by

project property for line 7.

tax-exempt private activity bonds, the amount that you can

•

The information for lines 10b through 10j and 10m for the

claim as basis is the basis that would otherwise be allowed

rehabilitation credit.

multiplied by a fraction that is 1 reduced by a second fraction,

•

The basis of energy property for lines 11a, 11b, 11c, 11f, 11i,

the numerator of which is that portion of the basis allocable to

11l, 11o, 11q, 11r, and 11s.

such financing or proceeds, and the denominator of which is the

•

The kilowatt capacity for lines 11d, 11g, and 11j.

basis of the property. For example, if the basis of the property is

•

The megawatt capacity or horsepower for line 11m.

$100,000 and the portion allocable to such financing or

proceeds is $20,000, the fraction of the basis that you may

Part I. Information Regarding the Election To

claim the credit on is

(that is, 1 minus $20,000/$100,000).

Treat the Lessee as the Purchaser of Investment

Subsidized energy financing means financing provided under a

Credit Property

federal, state, or local program, a principal purpose of which is

If you lease property to someone else, you may elect to treat all

to provide subsidized financing for projects designed to

or part of your investment in new property as if it were made by

conserve or produce energy.

the person who is leasing it from you. Once the election is

Line 5a

made, the lessee will be entitled to an investment credit for that

property for the tax year in which the property is placed in

Enter the qualified investment in integrated gasification

service and the lessor will generally not be entitled to such a

combined cycle property placed in service during the tax year

credit.

for projects described in section 48A(d)(3)(B)(i). Eligible

property is any property which is part of a qualifying advanced

If the leased property is disposed of, or otherwise ceases to

coal project using an integrated gasification combined cycle and

be section 38 property, the property will generally be subject to

is necessary for the gasification of coal, including any coal

the recapture rules for early dispositions.

handling and gas separation equipment.

For information on making the election, see section 48(d) (as

in effect on November 4, 1990) and related regulations. For

Integrated gasification combined cycle is an electric

limitations, see sections 46(e)(3) and 48(d) (as in effect on

generation unit which produces electricity by converting coal to

November 4, 1990).

synthesis gas, which in turn is used to fuel a combined-cycle

plant to produce electricity from both a combustion turbine

Line 2

(including a combustion turbine/fuel cell hybrid) and a steam

Enter the lessor’s full address. Enter the address of the lessor’s

turbine.

principal office or place of business. Include the suite, room, or

other unit number after the street address. If the post office

Line 5b

does not deliver mail to the street address and the lessor has a

Enter the qualified investment in advanced coal-based

P.O. box, show the box number instead.

generation technology property placed in service during the tax

Note. Do not use the address of the registered agent for the

year for projects described in section 48A(d)(3)(B)(ii). Eligible

state in which the lessor is incorporated. For example, if a

property is any property which is part of a qualifying advanced

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Instructions For Form 3468 - 2009 Page 2

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