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Who Can Take the Credit

Proceeds of a tax-exempt issue of state or local government

obligations used to provide financing for the project;

Generally, the owner of the facility is allowed the credit. In the

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case of closed-loop biomass facilities modified to co-fire with

Total of subsidized energy financing provided directly or

coal, other biomass, or both, open-loop biomass facilities, and

indirectly under a federal, state, or local program provided for

refined coal facilities, if the owner is not the producer of the

the project; and

electricity, the lessee or the operator of the facility is eligible for

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The amount of any federal tax credit allowable for any

the credit.

property that is part of the project.

Specific Instructions for Part I and Part II

Line 10 and Line 30

Figure any renewable electricity, refined coal, and Indian coal

production credit from your trade or business on lines 1 through

Partnerships that own and produce electricity from qualified

8 or lines 13 through 28. Skip lines 1 through 8 or lines 13

wind facilities should see Rev. Proc. 2007-65, 2007-45 I.R.B.

through 28 if you are only claiming a credit that was allocated to

967, as modified by Announcement 2009-69, 2009-40 I.R.B.

you from an S corporation, partnership, cooperative, estate, or

475, for information on how to allocate the credit. Rev. Proc.

trust.

2007-65 is available at

and Announcement 2009-69 is available at

Fiscal year taxpayers. If you have sales in 2010 and 2011

and the credit rate on lines 1, 13, 14, 18, 21, or 22 (or the

phaseout adjustment on lines 2, 16, or 19) is different for 2011,

make separate computations for each line. Use the respective

Line 31

sales, credit rate, and phaseout adjustment for each calendar

Enter the amount included on line 30 that is from a passive

year. Enter the total of the two computations on the credit rate

activity. Generally, a passive activity is a trade or business in

line(s) (lines 1, 13, 14, 18, 21, or 22) or the phaseout

which you did not materially participate. Rental activities are

adjustment line(s) (lines 2, 16, or 19). Attach the computations

generally considered passive activities, whether or not you

to Form 8835 and write “FY” in the margin.

materially participate. For details, see Form 8582-CR, Passive

Line 1 and Line 13

Activity Credit Limitations (for individuals, trusts, and estates),

or Form 8810, Corporate Passive Activity Loss and Credit

Enter the kilowatt-hours of electricity produced at the applicable

Limitations (for corporations).

qualified facilities and multiply by $.022. Fiscal year filers with

2011 sales may have to refigure lines 1 and 13 as explained

under Fiscal year taxpayers above.

Line 33

Enter the passive activity credit allowed for the 2010 renewable

Line 14

electricity, refined coal, and Indian coal production credit from

Enter the kilowatt-hours of electricity produced and sold at the

Form 8582-CR or Form 8810.

applicable qualified facilities and multiply by $.011. Fiscal year

filers with 2011 sales must figure line 14 as explained under

Line 35

Fiscal year taxpayers above.

Use only if you amend your 2010 return to carry back an

Line 2 and Line 16

unused renewable electricity, refined coal, and Indian coal

Calendar year filers enter zero on line 2 or line 16. Fiscal year

production credit from 2011.

filers with sales in 2011 also enter zero if the published 2011

reference price is equal to or less than the 2011 adjusted

Line 11 and Line 37

threshold price. See How To Figure the Credit on page 1 to

figure the adjustment.

Cooperative election to allocate credit to patrons. A

cooperative described in section 1381(a) can elect to allocate

Line 18

any part of the renewable electricity, refined coal, and Indian

Enter the tons of refined coal (other than steel industry fuel)

coal production credit among the patrons of the cooperative.

produced and sold during 2010 from a qualified refined coal

The credit is allocated among the patrons eligible to share in

production facility and multiply by $6.27. Fiscal year filers with

patronage dividends on the basis of the quantity or value of

2011 sales must figure line 18 as explained under Fiscal year

business done with or for such patrons for the tax year.

taxpayers above.

The cooperative is deemed to have made the election by

Line 19

completing line 11 or line 37, as applicable. However, the

Calendar year filers enter zero on line 19. Fiscal year filers with

election is not effective unless (a) made on a timely filed return

sales in 2011 also enter zero if the published 2011 reference

(including extensions) and (b) the organization designates the

price is equal to or less than 1.7 times the 2002 reference price.

apportionment in a written notice mailed to its patrons during

See How To Figure the Credit on page 1 to figure the

the payment period described in section 1382(d).

adjustment.

Line 21

If you timely file your return without making an election, you

can still make the election by filing an amended return within 6

Enter the barrel-of-oil equivalents of steel industry fuel

months of the due date of the return (excluding extensions).

produced and sold from a qualified refined coal facility and

Enter “Filed pursuant to section 301.9100-2” on the amended

multiply by $2.87.

return.

Line 22

Once made, the election cannot be revoked.

Enter the tons of Indian coal produced and sold from a qualified

Indian coal facility and multiply by $2.20.

Estates and trusts. Allocate the credit on line 10 or line 36

Line 4 and Line 24

between the estate or trust and the beneficiaries in the same

proportion as income was allocated and enter the beneficiaries’

Enter the sum, for this and all prior tax years, of:

share on line 11 or line 37.

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Grants provided by the United States, a state, or political

subdivision of a state for the project;

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Instructions For Form 8835 - Renewable Electricity, Refined Coal, And Indian Coal Production Credit - 2010 Page 3

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