Instructions For Form 3468 - Investment Credit

Regulations sections 1.194-2 and

The general business credit consists

Line 8g—Credit for fuel from a

1.48-1(p).

of the following credits:

nonconventional source.—

Corporations, enter the nonconventional

You must reduce the amortizable basis

Investment (Form 3468),

source fuel credit from Form 1120,

by 50% of the reforestation credit

Jobs (Form 5884),

Schedule J, line 4d. For individuals, the

determined.

Alcohol used as fuel (Form 6478),

credit is included in the total for line 45

Line 4—Regular investment credit for

Research (Form 6765),

of Form 1040 (report only the portion of

transition property.—Enter the qualified

line 45 that is the nonconventional

Low-income housing (Form 8586),

investment of any property that qualified

source fuel credit). Other filers, enter the

Enhanced oil recovery (Form 8830),

for “regular” investment credit as

credit from the appropriate line of your

transition property (as defined in section

Disabled access (Form 8826),

return.

49(e) as in effect on November 4, 1990).

Renewable electricity production

Line 10—Tentative minimum tax.—

You must reduce the regular 10% credit

(Form 8835),

Enter the tentative minimum tax (TMT)

for transition property by 35%, thus

Indian employment (Form 8845),

that was figured on the appropriate

making the credit for this type of

alternative minimum tax (AMT) form or

Employer social security and Medicare

property 6.5%.

schedule. Although you may not owe

taxes paid on certain employee tips

You must reduce the basis in the

AMT, you must still compute the TMT to

(Form 8846), and

property by the amount of the credit.

figure your credit.

Contributions to selected community

Line 5—Credit from cooperatives.—

Line 12.—If a husband and wife file

development corporations (Form 8847).

Section 1381(a) cooperative

separate returns, each must use

The empowerment zone employment

organizations may claim the investment

$12,500 instead of $25,000. But if one

credit (Form 8844), while a component

credit. If the cooperative cannot use any

of them has no investment credit (or no

of the general business credit, is figured

of the credit because of the tax liability

carryforwards or carrybacks to the

separately on Form 8844 and is never

limitation, the unused credit must be

current year), then the other may use the

carried to Form 3800.

allocated to the patrons of the

entire $25,000.

cooperative. The recapture provisions of

C corporations that are required to file

A member of a controlled group must

section 50 apply as if the cooperative

Form 4626, Alternative Minimum Tax—

enter only its apportioned share of the

had kept the credit and not allocated it.

Corporations, may also use Schedule A

$25,000.

Patrons should enter their unused

of Form 3800 to determine if they are

regular investment credit and their

A mutual savings institution, a

entitled to an additional general business

unused energy credit from cooperatives.

regulated investment company, or a real

credit for any regular investment credit

estate investment trust should see

carryforward to 1994 for property placed

Special Limitations for Lines 1a

Who Must File Form 3800

in service before January 1, 1991, under

Through 1e, 4, and 12 on page 2.

section 38(c)(2) before amendment by

If for this year you have more than one

the Revenue Reconciliation Act of 1990.

For estates and trusts, the $25,000

of the credits included in the general

limitation is reduced by the same

business credit listed below, or have a

Part II—Tax Liability

proportionate share of income that was

carryback or carryforward of any of the

allocated to the beneficiaries.

Limitation

credits, or have an investment credit

Note: If you cannot use all of the credit

from a passive activity, you must

If you must file Form 3800, do not

because of the tax liability limitation (line

complete Form 3800, General Business

complete Part II of Form 3468.

6 is greater than line 13), carry the

Credit, instead of completing Part II of

Line 7c.—Form 990-T filers, enter the

excess back 3 years and then forward 15

Form 3468 to figure the tax liability

total of either lines 35c and 37 or lines

years. See the separate Instructions for

limitation.

36 and 37, whichever applies.

For m 3800 for details.

Page 3

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Instructions For Form 3468 - Investment Credit - 1994 Page 3

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