Instructions For Form 3468 - Department Of The Treasury (Page 3 of 4) in pdf

If you are claiming a credit for a certified historic structure on

Line 3—Reforestation Credit

line 1c, enter the assigned NPS project number on line 1c(1). If

Enter the portion of the amortizable basis of any qualified timber

the qualified rehabilitation expenditures are from an S

property that was acquired during the tax year and is taken into

corporation, partnership, estate, or trust, enter the employer

account under section 194. Only direct costs for planting and

identification number of the pass-through entity instead of the

seeding can be amortized. These include costs for site

assigned NPS project number.

preparation, seed, seedlings, labor, tools, and depreciation on

equipment such as tractors, trucks, and tree planters used in

Enter the date of the final certification of completed work

planting or seeding. Depreciation is a direct cost only for the

received from the Secretary of the Interior on line 1c(2). If the

period of time the equipment is used in these activities.

final certification has not been received by the time the tax

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

You cannot claim more than $10,000 (or $5,000 if married

copy of the first page of NPS Form 10 – 168a, Historic

filing separately) of amortizable basis acquired during the tax

Preservation Certification Application (Part 2 – Description of

year. For details, see Regulations sections 1.194-2 and

Rehabilitation), with proof that it was received by the

1.48-1(p).

Department of the Interior or the State Historic Preservation

Officer, together with evidence that the building is a certified

You must reduce the amortizable basis by 50% of the

historic structure (or that such status has been requested). After

reforestation credit determined.

the final certification of completed work has been received, file

Line 4—Credit From Cooperatives

Form 3468 with the first income tax return filed after receipt of

the certification and enter the assigned NPS project number

Section 1381(a) cooperative organizations may claim the

and the date of the final certification of completed work on the

investment credit. If the cooperative cannot use any of the

appropriate lines on the form. Also attach an explanation, and

credit because of the tax liability limit, the unused credit must be

indicate the amount of credit claimed in prior years.

allocated to the patrons of the cooperative. The recapture

provisions of section 50 apply as if the cooperative had kept the

If the adjusted basis of the building is determined in whole or

credit and not allocated it. Patrons should enter their unused

in part by reference to the adjusted basis of a person other than

investment credit from cooperatives.

the taxpayer, see Regulations section 1.48-12(b)(2)(viii) for

additional information that must be attached.

Who Must File Form 3800

Line 2—Energy Credit

Complete Form 3800, General Business Credit, instead of Part

Enter the basis of energy property placed in service during the

II of Form 3468 to figure the tax liability limit if for this year you

tax year. Energy property is:

have:

•

More than one of the credits included in the general business

1. Equipment that uses solar energy to generate electricity,

credit listed below,

to heat or cool (or provide hot water for use in) a structure, or to

•

provide solar process heat or

A carryback or carryforward of any of the credits,

•

2. Equipment used to produce, distribute, or use energy

An investment credit from a passive activity, or

•

derived from a geothermal deposit (within the meaning of

General credits from an electing large partnership (Schedule

section 613(e)(2)). For electricity produced by geothermal

K-1 (Form 1065-B)).

power, equipment qualifies only up to, but not including, the

The general business credit consists of the following credits.

electrical transmission stage.

•

Investment (Form 3468).

•

To qualify, the property must be constructed, reconstructed,

Work opportunity (Form 5884).

•

or erected by the taxpayer. If acquired by the taxpayer, the

Welfare-to-work (Form 8861).

original use of such property must begin with the taxpayer. The

•

Alcohol used as fuel (Form 6478).

property must meet the performance and quality standards, if

•

Research (Form 6765).

any, that have been prescribed by regulations and are in effect

•

Low-income housing (Form 8586).

at the time the property is acquired.

•

Enhanced oil recovery (Form 8830).

•

Energy property does not include any property that is public

Disabled access (Form 8826).

•

utility property as defined by section 46(f)(5) (as in effect on

Renewable electricity production (Form 8835).

November 4, 1990).

•

Indian employment (Form 8845).

•

If energy property is financed in whole or in part by

Employer social security and Medicare taxes paid on certain

subsidized energy financing or by tax-exempt private activity

employee tips (Form 8846).

•

bonds, the amount that you can claim as basis is the basis that

Orphan drug (Form 8820).

•

would otherwise be allowed multiplied by a fraction that is 1

New markets (Form 8874).

•

reduced by a second fraction, the numerator of which is that

Contributions to selected community development

portion of the basis allocable to such financing or proceeds, and

corporations (Form 8847).

the denominator of which is the basis of the property. For

•

Trans-Alaska pipeline liability fund.

example, if the basis of the property is $100,000 and the portion

The empowerment zone employment credit (Form 8844),

allocable to such financing or proceeds is $20,000, the fraction

while a component of the general business credit, is figured

of the basis that you may claim the credit on is

(i.e., 1 minus

separately on Form 8844 and is never carried to Form 3800.

$20,000/$100,000).

C corporations that are required to file Form 4626,

Subsidized energy financing means financing provided

Alternative Minimum Tax — Corporations, may also use

under a Federal, state, or local program, a principal purpose of

Schedule A of Form 3800 to determine if they are entitled to an

which is to provide subsidized financing for projects designed to

additional general business credit for any regular investment

conserve or produce energy.

credit carryforward to 2001 for property placed in service before

You must reduce the depreciable basis by 50% of the

January 1, 1991, under section 38(c)(2) (as in effect on

November 4, 1990).

energy credit determined.

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Instructions For Form 3468 - Department Of The Treasury Page 3

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