Instructions For Form 3468 - 2009 (Page 5 of 7) in pdf

instead of the assigned NPS project number, and skip line 10l

produced by geothermal power, equipment qualifies only up to,

and the instructions below.

but not including, the electrical transmission stage.

Enter the date of the final certification of completed work

Also enter the basis, attributable to periods before January

received from the Secretary of the Interior on line 10l. If the final

1, 2006, of property placed in service during the tax year that

certification has not been received by the time the tax return is

uses solar energy to:

filed for a year in which the credit is claimed, attach a copy of

1. Generate electricity,

the first page of NPS Form 10-168a, Historic Preservation

2. Heat or cool (or provide hot water for use in) a structure,

Certification Application (Part 2 — Description of Rehabilitation),

with an indication that it was received by the Department of the

3. Provide solar process heat (but not to heat a swimming

Interior or the State Historic Preservation Officer, together with

pool).

proof that the building is a certified historic structure (or that

such status has been requested). After the final certification of

Basis is attributable to periods before January 1, 2006, if the

completed work has been received, file Form 3468 with the first

property was acquired before January 1, 2006, or to the extent

income tax return filed after receipt of the certification and enter

of basis attributable to construction, reconstruction, or erection

the assigned NPS project number and the date of the final

by the taxpayer before January 1, 2006.

certification of completed work on the appropriate lines on the

Line 11b

form. Also attach an explanation, and indicate the amount of

credit claimed in prior years.

Enter the basis, attributable to periods after December 31,

2005, of any property using solar energy placed in service

You must retain a copy of the final certification of completed

during the tax year. There are two types of property.

work as long as its contents may be needed for the

administration of any provision of the Internal Revenue Code.

1. Equipment that uses solar energy to illuminate the inside

of a structure using fiber-optic distributed sunlight.

If the final certification is denied by the Department of

2. Equipment that uses solar energy to:

Interior, the credit is disallowed for any tax year in which it was

a. Generate electricity,

claimed, and you must file an amended return if necessary. See

b. Heat or cool (or provide hot water for use in) a structure,

Regulations section 1.48-12(d)(7)(ii) for details.

Energy Credit

c. Provide solar process heat (but not to heat a swimming

pool).

To qualify as energy property, property must:

1. Meet the performance and quality standards, if any, that

Basis is attributable to periods after December 31, 2005, if

have been prescribed by regulations and are in effect at the

the property was acquired after December 31, 2005, or to the

time the property is acquired;

extent of basis attributable to construction, reconstruction, or

2. Be property for which depreciation (or amortization in lieu

erection by the taxpayer after December 31, 2005.

of depreciation) is allowable; and

3. Be property either:

Line 11c

a. The construction, reconstruction, or erection of which is

Enter the basis, attributable to periods after December 31,

completed by the taxpayer; or

2005, and before October 4, 2008, of any qualified fuel cell

b. Acquired by the taxpayer if the original use of such

property placed in service during the tax year.

property must begin with the taxpayer.

Qualified fuel cell property is a fuel cell power plant that

generates at least 0.5 kilowatt of electricity using an

Energy property does not include any property acquired

electrochemical process and has electricity-only generation

before February 14, 2008, or to the extent of basis attributable

efficiency greater than 30 percent. See section 48(c)(1) for

to construction, reconstruction, or erection before February 14,

further details.

2008, that is public utility property, as defined by section

46(f)(5) (as in effect on November 4, 1990), and related

Basis is attributable to periods after December 31, 2005, and

regulations.

before October 4, 2008, if the property was acquired after

December 31, 2005, and before October 4, 2008, or to the

You must reduce the basis of energy property by 50% of the

extent of basis attributable to construction, reconstruction, or

energy credit determined.

erection by the taxpayer after December 31, 2005, and before

You must reduce the basis of energy property used for

October 4, 2008.

figuring the credit by any amount attributable to qualified

rehabilitation expenditures.

Line 11d

Enter the applicable number of kilowatts of capacity attributable

Energy property that qualifies for a grant under section 1603

to the basis on line 11c.

of the American Recovery and Reinvestment Tax Act of 2009 is

not eligible for the energy credit for the tax year that the grant is

Transitional Rule. The increase in the kilowatt limit from

made or any subsequent tax year.

$1,000 to $3,000 per kilowatt applies only to:

•

Basis reduction. If energy property (acquired before January

property (other than property for which you have elected to

1, 2009, or to the extent of its basis attributable to construction,

treat expenditures as qualified progress expenditures) the

reconstruction, or erection before January 1, 2009) is financed

construction, reconstruction, or erection of which is completed

in whole or in part by subsidized energy financing or by

by the taxpayer after October 3, 2008, but only to the extent of

tax-exempt private activity bonds, reduce the basis of such

the basis thereof attributable to the construction, reconstruction,

property under the rules described in Basis reduction for certain

or erection during such period;

•

financing, earlier. For property acquired after December 31,

property (other than property for which you have elected to

2008, and for basis attributable to construction, reconstruction,

treat expenditures as qualified progress expenditures) acquired

or erection after December 31, 2008, there is no basis reduction

and placed in service after October 3, 2008; and

•

for property financed by subsidized energy financing or by

property for which you have elected to treat expenditures as

tax-exempt private activity bonds.

qualified progress expenditures but only to the extent of the

qualified investment with respect to qualified progress

Line 11a

expenditures made after October 3, 2008.

Enter the basis of any property placed in service during the tax

Line 11f

year that uses geothermal energy. Geothermal energy property

is equipment that uses geothermal energy to produce,

Enter the basis, attributable to periods after October 3, 2008, of

distribute, or use energy derived from a geothermal deposit

any qualified fuel cell property placed in service during the tax

(within the meaning of section 613(e)(2)). For electricity

year.

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Instructions For Form 3468 - 2009 Page 5

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