Instructions For Form 3800 - General Business Credit

2017

Department of the Treasury

Internal Revenue Service

Instructions for Form 3800

General Business Credit

Carryback and

Section references are to the Internal Revenue

Figuring the carryforward if a payroll

Code unless otherwise noted.

Carryforward of

tax credit election is made. Qualified

small businesses electing to claim a

Future Developments

Unused Credit

portion of the research credit as a payroll

For the latest information about

tax credit must adjust the research credit

The carryforward may have to be

developments related to Form 3800 and

carryforward for the amount of the credit

reduced in the event of any

its instructions, such as legislation

elected as a payroll tax credit on Form

recapture event (change in

enacted after they were published, go to

CAUTION

6765.

ownership, change in use of property,

IRS.gov/Form3800.

The unused credit for the current year

etc.). If a section 1603 grant is received,

the carryforward must be reduced to zero.

is determined by reducing the amount on

What’s New

For further information, see Form 4255,

Part I, line 6 and Part II, line 36 by the

The enhanced oil recovery credit (Form

Recapture of Investment Credit.

amount on Form 6765, line 44. If you have

8830) is now reported on line 1t, in Part III.

amounts on both Part I, line 6 and Part II,

If you can't use part or all of your

The credit for oil and gas production

line 36, the reduction is made

general business credit because of the tax

from marginal wells (Form 8904) is

proportionately. No amount elected as a

liability limit (Part II, line 38, is less than the

applicable for tax years beginning in 2016.

payroll tax credit can be used to offset the

sum of Part I, line 6, and Part II, lines 25

See the

instructions for Part III, line

1zz.

current year tax liability nor can it be

and 36), carry the unused credit back 1

The employee retention credit from

included in the carryforward or carryback

year. If the credit is for oil and gas

Form 5884-A is now reported on line 1aa.

calculation.

production from marginal wells, the

See the

instructions for line

1aa.

Carryforward of the energy credit and

carryback period is 5 years. To carry back

Any carryforward of the new hire

the renewable electricity credit. The

an unused credit, file an amended return

retention credit is now reported on

energy credit must be recaptured in full if a

(Form 1040X, Amended U.S. Individual

line 1zz.

grant is paid under Public Law 111-5,

Income Tax Return, Form 1120X,

General Instructions

section 1603, for investment in energy

Amended U.S. Corporation Income Tax

property that an energy credit was

Return, or other amended return) for the

previously claimed or for investment in

prior tax year or an application for tentative

Partnerships and S corporations

renewable energy property that an

refund (Form 1045, Application for

must always complete the source

TIP

election was made to treat the property as

Tentative Refund, or Form 1139,

credit form. All other filers whose

energy property. Recapture is applicable

Corporation Application for Tentative

only source for a credit listed on Form

to those amounts previously constituting

Refund). Generally, if you file an

3800, Part III, is from a partnership, S

the qualified basis for an energy credit,

application for a tentative refund, it must

corporation, estate, trust, or cooperative

including progress expenditures, that are

be filed by the end of the tax year following

can report the credit directly on Form

also the basis for the 1603 grant.

the tax year in which the credit arose.

3800. The following exceptions apply.

Recapture is accomplished as follows.

No part of the unused credit for

You are claiming the investment credit

1. Any portion of the energy credit

any year attributable to any credit

(Form 3468) or the biodiesel and

TIP

related to that property that was used to

can be carried back to any tax

renewable diesel fuels credit (Form 8864)

offset tax in a prior tax year must be added

year before the first tax year for which that

in Part III with box A or B checked.

to tax in the tax year the 1603 grant is

credit was first allowable. See

Credit

You are an estate or trust and the

received. Recaptured tax is calculated on

Ordering

Rule, later, to determine which

source credit must be allocated to

Form 4255.

credits are allowed first.

beneficiaries. For more details, see the

2. Any carryforward of the energy

instructions for Form 1041, U.S. Income

credit related to that property is reduced to

Tax Return for Estates and Trusts,

If you have an unused credit after

zero to recapture the unused portion of the

Schedule K-1, box 13.

carrying it back 1 year (5 years for a credit

credit.

You are a cooperative and the source

from oil and gas production from marginal

credit can or must be allocated to patrons.

wells), carry it forward to each of the 20

See Form 4255 for any other recapture

For more details, see the instructions for

tax years after the year of the credit. Any

event (change in ownership or change in

Form 1120-C, U.S. Income Tax Return for

qualified business credits (as defined in

use of property, etc.).

Cooperative Associations, Schedule J,

section 196(c)) that are unused after the

Carryforward of certain Form 6478

line 5c.

last tax year of the 20-year carryforward

credits. The alcohol mixture credit, the

period (or at the time an individual

alcohol credit, and the small ethanol

Who Must File

taxpayer dies or other taxpayer, such as a

producer credit expired for fuels sold or

corporation or partnership, ceases to

You must file Form 3800 to claim any of

used after 2011. The unused alcohol

exist) may be taken as a deduction in the

the general business credits.

mixture credits, alcohol credits, and small

earlier of:

ethanol producer credits (for all tax years)

The tax year following the last tax year

can't be carried to a tax year beginning

of the 20-year carryforward period, or

after 2014.

The tax year in which the individual

taxpayer dies or other taxpayer ceases to

exist.

Jan 22, 2018

Cat. No. 10622Q

Instructions For Form 3800 - General Business Credit - 2017

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