Instructions For Form 3468 - Investment Credit

Line 5a and Line 11a

consumed in its normal application, and the denominator of

which is the lower heating value of the fuel sources for the

Enter the basis of any property using geothermal energy placed

system. The energy efficiency percentage is determined on a

in service during the tax year. Geothermal energy property is

Btu basis.

equipment that uses geothermal energy to produce, distribute,

or use energy derived from a geothermal deposit (within the

Combined heat and power system property does not include

meaning of section 613(e)(2)). For electricity produced by

property used to transport the energy source to the facility or to

geothermal power, equipment qualifies only up to, but not

distribute energy produced by the facility.

including, the electrical transmission stage.

Biomass systems. Systems designed to use biomass for at

least 90 percent of the energy source are eligible for a credit

Line 5b and Line 11b

that is reduced in proportion to the degree to which the system

Enter the basis of any property using solar energy placed in

fails to meet the efficiency standard. For more information, see

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

section 48(c)(3)(D).

1. Equipment that uses solar energy to illuminate the inside

For transitional rules, see Line 5c, Line 5f, and Line 11c.

of a structure using fiber-optic distributed sunlight.

2. Equipment that uses solar energy to:

Line 5o and Line 11l

a. Generate electricity,

Enter the basis of any qualified small wind energy property

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

placed in service after October 3, 2008, and before January 1,

2009. Qualified small wind energy property means property that

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

uses a qualifying small wind turbine to generate property. For

pool).

this purpose, a qualifying small wind turbine means a wind

turbine which has a nameplate capacity of not more than 100

Line 5c, Line 5f, and Line 11c

kilowatts. For details, see section 48(c)(4).

Enter the basis of any qualified fuel cell property placed in

For transitional rules, see Line 5c, Line 5f, and Line 11c.

service during the tax year as follows.

•

Line 5q and Line 11n

Line 5c, if your tax year began before October 4, 2008, and

the property was placed in service before October 4, 2008,

Enter the basis of any qualified small wind energy property

•

Line 5f, if your tax year began before October 4, 2008, and

placed in service after December 31, 2008.

the property was placed in service after October 3, 2008, and

Transitional rule. Enter only the basis attributable to the

•

Line 11c, if your tax year began after October 3, 2008.

periods after December 31, 2008, for property:

•

Qualified fuel cell property is a fuel cell power plant that

Constructed, reconstructed, or erected by the taxpayer and

generates at least 0.5 kilowatt of electricity using an

completed after December 31, 2008,

•

electrochemical process and has electricity-only generation

Acquired and placed in service after December 31, 2008, and

•

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

Only to the extent of the qualified investment (as determined

further details.

under section 46(c) and (d) as in effect on November 4, 1990)

with respect to qualified progress expenditures made after

Transitional rule. Enter only the basis attributable to the

December 31, 2008.

periods after October 3, 2008, for property:

•

Constructed, reconstructed, or erected by the taxpayer and

Line 5r and Line 11o

completed after October 3, 2008,

•

Enter the basis of any geothermal heat pump system placed in

Acquired and placed in service after October 3, 2008, and

•

service after October 3, 2008. Geothermal heat pump systems

Only to the extent of the qualified investment (as determined

constitute equipment which uses the ground or ground water as

under section 46(c) and (d) as in effect on November 4, 1990)

a thermal energy source to heat a structure or as a thermal

with respect to qualified progress expenditures made after

energy sink to cool a structure. For details, see section

October 3, 2008.

48(a)(3)(A)(vii).

Line 5i and Line 11f

For transitional rules, see Line 5c, Line 5f, and Line 11c.

Enter the basis of any qualified microturbine property placed in

Line 5s and 11p

service during the tax year. Qualified microturbine property is a

stationary microturbine power plant which generates less than

Enter the basis of any qualified investment credit facility

2,000 kilowatts and has an electricity-only generation efficiency

property placed in service after December 31, 2008. Qualified

of not less than 26 percent at International Standard

investment credit facility property is property for which

Organization conditions. See section 48(c)(2) for further details.

depreciation or amortization is allowable and is tangible

personal property or other tangible property (not including a

Line 5l and Line 11i

building or its structural components), but only if the property is

Enter the basis of any qualified combined heat and power

used as an integral part of the qualified investment credit

system property placed in service after October 3, 2008.

facility. See section 48(a)(5) for details.

Combined heat and power system property is property that

A qualified investment credit facility is any of the following

uses the same energy source for the simultaneous or

facilities if no credit has been allowed under section 45 for that

sequential generation of electrical power, mechanical shaft

facility and an irrevocable election was made to treat the

power, or both, in combination with the generation of steam or

qualified facility as energy property.

other forms of useful thermal energy (including heating and

•

Wind facilities under section 45(d)(1) if the facility is placed in

cooling applications), the energy efficiency percentage of which

service in 2009, 2010, 2011, or 2012,

exceeds 60 percent, that produces:

•

Any qualified facility under section 45(d)(2), (3), (4), (6), (7),

At least 20 percent of its total useful energy in the form of

(9), or (11), if that facility is placed in service in 2009, 2010,

thermal energy that is not used to produce electrical or

2011, 2012, or 2013.

mechanical power (or a combination thereof), and

•

At least 20 percent of its total useful energy in the form of

Qualifying Advanced Coal Project Credit: Part II

electrical or mechanical power (or a combination thereof).

A qualifying advanced coal project is a project that:

•

For details, see section 48(c)(3).

Uses advanced coal-based generation technology (as

Energy efficiency percentage. The energy efficiency

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

percentage of a combined heat and power system property is

unit or to refit or repower an existing electric generation unit

the fraction — the numerator of which is the total useful

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

•

electrical, thermal, and mechanical power produced by the

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

system at normal operating rates, and expected to be

percent coal,

-3-

Instructions For Form 3468 - Investment Credit - 2008 Page 3

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