Instructions For Form 3468 - Investment Credit

•

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

during the tax year for which credits were allocated or

generate at least 400 megawatts,

reallocated after October 3, 2008, and that include equipment

•

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

that separates and sequesters at least 75% of the project’s

acquired or utilized,

carbon dioxide emissions.

•

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

For purposes of this credit, eligible property includes any

the taxpayer provides evidence of ownership or control of a site

property that is part of a qualifying gasification project and

of sufficient size,

necessary for the gasification technology of such project. The

•

Will be located in the United States, and

IRS is required to recapture the benefit of any allocated credit if

•

Includes equipment that separates and sequesters at least

a project fails to attain or maintain these carbon dioxide

65 percent (70 percent if the credit is later reallocated) of the

separation and sequestration requirements. See section 48B(f).

project’s total carbon dioxide emissions for project applications

described in section 48A(d)(2)(A)(ii).

Line 7b

Basis. The basis of property may have to be reduced for

Enter the basis of the qualified investment, other than line 7a, in

certain financing received under rules similar to section 48(a)(4)

qualifying gasification project property (defined above) placed in

and described in the first paragraph under Energy Credit.

service during the tax year.

Qualified investment for any tax year is the basis of eligible

Line 8a: Qualifying Advanced Energy Project

property placed in service by the taxpayer during the tax year

Credit

which is part of the qualifying project. Eligible property is limited

Enter the basis of any eligible property placed in service after

to property which can be depreciated or amortized and which

February 17, 2009, that is part of a qualifying advanced energy

was constructed, reconstructed, or erected and completed by

project. Qualified advanced energy project means a project that

the taxpayer; or which is acquired by the taxpayer if the original

re-equips, expands, or establishes a manufacturing facility for

use of such property commences with the taxpayer.

the production of:

Line 6a

•

Property designed to be used to produce energy from the

Enter the basis of any qualifying investment in integrated

sun, wind, geothermal deposits (within the meaning of section

gasification combined cycle property placed in service during

613(e)(2)), or other renewable resources,

•

Fuel cells, microturbines, or an energy storage system for

the tax year for projects described in section 48A(d)(3)(B)(i).

Eligible property is any property which is part of a qualifying

use with electric or hybrid-electric motor vehicles,

•

Electric grids to support the transmission of intermittent

advanced coal project using an integrated gasification

combined cycle and is necessary for the gasification of coal,

sources of renewable energy, including storage of the energy,

•

including any coal handling and gas separation equipment.

Property designed to capture and sequester carbon dioxide

emissions,

Integrated gasification combined cycle is an electric

•

Property designed to refine or blend renewable fuels or to

generation unit which produces electricity by converting coal to

produce energy conservation technologies (including

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

energy-conserving lighting technologies and smart grid

plant to produce electricity from both a combustion turbine

technologies),

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

•

New qualified plug-in electric drive motor vehicles (as defined

turbine.

in section 30D), qualified plug-in electric vehicles (as defined in

Line 6b

section 30(d)), or components which are designed specifically

for use with those vehicles, including electric motors,

Enter the basis of any qualifying investment in advanced

generators, and power control units, and

coal-based generation technology property placed in service

•

Other advanced energy property designed to reduce

during the tax year for projects described in section

greenhouse gas emissions.

48A(d)(3)(B)(ii). Eligible property is any property which is part of

a qualifying advanced coal project (defined earlier) not using an

Any portion of the qualified investment in the qualifying

integrated gasification combined cycle.

advanced energy project must be certified by the IRS under

section 48C(d) to be eligible for the credit.

Line 6c

Qualified advanced energy project does not include any

Enter the basis of any qualifying investment in advanced

portion of a project for the production of any property that is

coal-based generation technology property placed in service

used in the refining or blending of any transportation fuel (other

during the tax year for projects described in section

than renewable fuels).

48A(d)(3)(B)(iii). Eligible property is any certified property

located in the United States and which is part of a qualifying

Eligible property. Eligible property is property that is

advanced coal project (defined earlier) which has equipment

necessary for the production of property described in section

that separates and sequesters at least 65 percent of the

48C(c)(1)(A)(i), for which depreciation or amortization is

project’s total carbon dioxide emissions. This percentage

available and is tangible personal property or other tangible

increases to 70 percent if the credits are later reallocated by the

property (not including a building or its structural components),

IRS.

but only if the property is used as an integral part of the

qualified investment credit facility.

The credit will be recaptured if a project fails to attain or

maintain the carbon dioxide separation and sequestration

Transitional rule. Enter only the basis attributable to the

requirements. For details, see section 48A(i).

periods after February 17, 2009, for property:

•

Constructed, reconstructed, or erected by the taxpayer and

Qualifying Gasification Project Credit: Part II

completed after February 17, 2009,

•

A qualifying gasification project is a project:

Acquired and placed in service after February 17, 2009, and

•

Employing gasification technology (as defined in section

Only to the extent of the qualified investment (as determined

48B(c)(2)), and

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

•

Carried out by an eligible entity (as defined in section

with respect to qualified progress expenditures made after

48B(c)(7)).

February 17, 2009.

The total amount of credits that may be allocated under the

Line 8b and Line 12: Credit From Cooperatives

qualifying gasification project program may not exceed $650

Patrons, including cooperatives that are patrons in other

million.

cooperatives, enter the unused investment credit allocated from

Line 7a

cooperatives. If you are a cooperative, see the Instructions for

Enter the basis of the qualified investment in qualifying

Form 3800, line 1a, for allocating the investment credit to your

gasification project property (defined above) placed in service

patrons.

-4-

Instructions For Form 3468 - Investment Credit - 2008 Page 4

Related Articles

Related forms

Related Categories