Enhanced Oil Recovery Credit
OMB No. 1545-1292
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Department of the Treasury
Attach to your tax return.
Internal Revenue Service (99)
Name(s) shown on return
Qualified enhanced oil recovery costs (see instructions)
Multiply line 1 by 15% (0.15)
Enhanced oil recovery credit from partnerships and S corporations (see instructions) .
Current year credit. Add lines 2 and 3. Partnerships and S corporations, report this amount on
Schedule K. All others, report this amount on Form 3800, Part III, line 1t .
a. That are paid or incurred in
Additionally, the operator or designated
connection with a qualified enhanced oil
owner must file a certification from a
Section references are to the Internal
petroleum engineer, who is registered or
recovery project, and
Revenue Code unless otherwise noted.
certified by a state, that the project meets
b. For which the taxpayer may make an
the above requirements. The operator or
election under section 263(c). For an
designated owner also must file a
integrated oil company, this includes
For the latest information about
certification each subsequent year
intangible drilling costs required to be
developments related to Form 8830 and its
indicating that the project continues to be
amortized under section 291(b).
instructions, such as legislation enacted
implemented substantially in accordance
3. Any qualified tertiary injectant
after this form and instructions were
with the petroleum engineer's certification.
expenses (as defined in section 193(b))
published, go to .
If the application of a tertiary recovery
paid or incurred in connection with a
method is terminated, the operator or
qualified enhanced oil recovery project for
designated owner must file a notice of
which a deduction is allowable for the tax
The section 43 enhanced oil recovery
project termination for the tax year when
year. Qualified tertiary injectant expenses
credit is applicable for tax years beginning
the project terminates.
includes expenditures related to the use of
in 2017 because of the lower reference
a tertiary injectant as well as expenditures
Send these filings to:
price per barrel of crude oil in 2016. See
related to the acquisition (whether
Internal Revenue Service
produced or acquired by purchase) of the
LB&I Enterprise Activities Practice Area
Purpose of Form
tertiary injectant. However, it doesn't
Attention: Director's Office
include costs that would have been paid or
Use Form 8830 to claim the enhanced oil
1919 Smith Street, Mail Stop 1003-HOU
incurred in the development or operation of
recovery credit. This credit is part of the
Houston, TX 77002
a mineral property if an enhanced oil
general business credit.
by the due date of the operator's or
recovery project had not been
designated owner's federal income tax
An owner of an operating mineral interest
implemented with respect to the property.
may claim or elect not to claim this credit
return. See Regulations section 1.43-3 for
Costs that are related to the use of a
the information required in the notice and
any time within 3 years from the due date
tertiary injectant and that also are related to
(excluding extensions) of its return on
other activities (for example, primary or
either its original or an amended return.
Tertiary recovery methods qualifying for
secondary recovery) must be reasonably
Partnerships and S corporations must file
the credit include:
allocated among the tertiary injectant and
this form to claim the credit. All other
• Miscible fluid displacement,
the other activities to determine the amount
taxpayers aren't required to complete or
• Steam drive injection,
of tertiary injectant expenses paid or
file this form if the only source of this credit
• Microemulsion flooding,
incurred for the tax year. For more details,
is a partnership or S corporation. Instead,
see Rev. Rul. 2003-82, 2003-30 I.R.B. 125.
• In situ combustion,
they can report this credit directly on Form
4. Any amount paid or incurred during
• Polymer-augmented water flooding,
3800, General Business Credit, Part III, line
the tax year to construct an Alaska natural
• Cyclic-steam injection,
gas plant within the meaning of sections
• Alkaline (or caustic) flooding,
Amount of Credit
43(c)(1)(D) and 43(c)(5).
• Carbonated water flooding,
The credit generally is 15% of qualified
Qualified enhanced oil recovery
• Immiscible nonhydrocarbon gas
costs for the tax year, but is reduced when
project means any project involving the
the reference price per barrel of crude oil is
application of one or more tertiary recovery
• Any other method approved by the
more than the base value of $28 (as
methods defined in section 193(b)(3) (and
Secretary of the Treasury.
adjusted by inflation). For tax years
listed below) that can reasonably be
beginning in 2017, there is no reduction of
expected to result in more than an
the credit because the reference price for
insignificant increase in the amount of
the 2016 calendar year, $38.29, isn't more
crude oil that will ultimately be recovered.
Figure any enhanced oil recovery credit
than $28 multiplied by the inflation
The project must be located within the
from your own trade or business on lines 1
adjustment factor for the 2016 calendar
United States, including the seabed and
and 2. Skip lines 1 and 2 if you're only
year ($28 multiplied by 1.6713 = $46.7964).
subsoil adjacent to the territorial waters of
claiming a credit that was allocated to you
See Notice 2017-25.
the United States over which the United
from an S corporation or a partnership.
States has exclusive rights by international
law for exploration and exploitation of
Qualified enhanced oil recovery costs
natural resources (see section 638(1)). The
Enter the total of the qualified costs paid or
means the following.
first injection of liquids, gases, or other
incurred during the year in connection with
matter must begin after 1990. However,
1. Any amount paid or incurred during
a qualified enhanced oil recovery project.
any significant expansion after 1990 of a
the tax year for tangible property:
See Definitions above.
project begun before 1991 is treated as a
a. That is an integral part of a qualified
Reduce the otherwise allowable
project where the first injection begins after
enhanced oil recovery project, and
deductions for line 1 costs by the line 2
credit attributable to these costs. Also, if
b. For which depreciation (or
any part of the line 1 costs are for
amortization) is allowable.
expenditures that increase the basis of
2. Any intangible drilling and
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Cat. No. 13059B