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2015

Department of the Treasury

Internal Revenue Service

Instructions for Form 8835

Renewable Electricity, Refined Coal, and Indian Coal Production Credit

Section references are to the Internal Revenue Code

Election To Treat a Qualified Facility as Energy

unless otherwise noted.

Property

Future Developments

Section 48(a)(5) provides an irrevocable election to treat

qualified property (described in section 48(a)(5)(D)) that is

For the latest information about developments related to

part of a qualified investment credit facility (described in

Form 8835 and its instructions, such as legislation

section 48(a)(5)(C)) as energy property eligible for the

enacted after they were published, go to

investment credit (reported on Form 3468, Investment

Credit) in lieu of a production credit reportable on this

What's New

form. This election applies to a facility that:

Is a qualified facility under section 45(d)(1), (2), (3), (4),

The Part I lines used to figure the current year credit have

(6), (7), (9), or (11) that is placed in service after 2008 and

been “Reserved” for 2015 because the credit period for

the construction of which begins before January 1, 2017

electricity produced at qualified facilities placed in service

(before January 1, 2015, for a qualified facility under

before October 23, 2004, has expired.

section 45(d)(1)). See

Construction of a Qualified

Facility,

The Protecting Americans from Tax Hikes Act of 2015

later;

has made the following changes:

No credit has been allowed under section 45 for that

The credit period for Indian coal produced at a qualified

facility; and

Indian coal production facility has been extended to an

An irrevocable election was made to treat the facility as

11-year period for Indian coal produced at a qualified

energy property.

Indian coal facility placed in service before 2009.

See Notice 2009-52 and Form 3468, for information on

To claim the renewable electricity production tax credit

making the election. Notice 2009-52 is available at

(PTC), the construction of certain qualified facilities must

begin before 2017. For more information, see

Construction of a Qualified

Facility, later.

Coordination With Department of Treasury

The election to treat qualified facilities as energy

Grants

property for the energy investment tax credit (ITC) was

extended. For more information, see Election to Treat a

If a grant is paid under the American Recovery and

Qualified Facility as Energy Property, later.

Reinvestment Act of 2009 (the Act), section 1603, for

placing into service specified energy property (described

in Act section 1603(d)), no production credit under section

General Instructions

45, or investment credit under section 48, is allowed for

Purpose of Form

the property for the tax year in which the grant is made or

any subsequent tax year. See section 48(d) for more

Use Form 8835 to claim the renewable electricity, refined

information.

coal, and Indian coal production credit. The credit is

allowed only for the sale of electricity, refined coal, or

You may not partition the basis of property for which a

Indian coal produced in the United States or U.S.

section 1603 award was received and claim a production

possessions from qualified energy resources at a qualified

credit under section 45 or investment credit under section

facility (see Definitions, later).

48 for any part of the basis of that property. However, you

must reduce the basis of the specified energy property by

Partnerships and S corporations must file this form to

50% of the amount of the actual section 1603 payment.

claim the credit. All others are generally not required to

complete or file this form if their only source for this credit

You may have to refigure the investment credit and

is a partnership, S corporation, estate, trust, or

recapture all or a portion of it if a grant under section 1603

cooperative. Instead, they can report this credit directly on

of the Act was made for section 48 property for which a

Form 3800, General Business Credit. The following

credit was allowed for progress expenditures before the

exceptions apply.

grant was made. Recapture is applicable to those

You are an estate or trust and the source credit can be

amounts previously included in the qualified basis for an

allocated to beneficiaries. For more details, see the

energy credit, including progress expenditures, that are

instructions for Form 1041, Schedule K-1, box 13, code J.

also the basis for the 1603 grant.

You are a cooperative and the source credit can or

How To Figure the Credit

must be allocated to patrons. For more details, see the

instructions for Form 1120-C, Schedule J, line 5c.

Generally, the credit for electricity, refined coal, and Indian

coal produced from qualified energy resources at a

qualified facility during the credit period (see Definitions,

later) is:

Feb 01, 2016

Cat. No. 55349M

Instructions For Form 8835 - Renewable Electricity, Refined Coal, And Indian Coal Production Credit - 2015

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