Instructions For Form 3468 - 2016 (Page 4 of 8) in pdf

Qualifying Advanced Energy Project Credit

Credit From Cooperatives

To be eligible for the qualifying advanced energy project credit,

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some or all of the qualified investment in the qualifying advanced

Patrons, including cooperatives that are patrons in other

energy project must be certified by the IRS under section

cooperatives, enter the unused investment credit from the

48C(d). For more information on certification, see Notice

qualifying advanced coal project credit, qualifying gasification

2009-72, 2009-37 I.R.B 325, available at

project credit, or qualifying advanced energy project credit

2009-37_IRB/ar06.html.

allocated from cooperatives. If you are a cooperative, see the

Instructions for Form 3800, Part III, line 1a, for allocating the

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investment credit to your patrons.

Enter the qualified investment in qualifying advanced energy

Rehabilitation Credit

project property placed in service during the tax year, that is part

of a qualifying advanced energy project. Qualified investment is

You are allowed a credit for qualified rehabilitation expenditures

the basis of eligible property placed in service during the tax

made for any qualified rehabilitated building. You must reduce

year that is part of a qualifying advanced energy project.

your basis by the amount of the credit determined for the tax

year.

Qualifying advanced energy project means a project that

If the adjusted basis of the building is determined in whole or

re-equips, expands, or establishes a manufacturing facility for

in part by reference to the adjusted basis of a person other than

the production of:

the taxpayer, see Regulations section 1.48-12(b)(2)(viii) for

Property designed to be used to produce energy from the sun,

additional information that must be attached.

wind, geothermal deposits (within the meaning of section 613(e)

(2)), or other renewable resources;

Fuel cells, microturbines, or an energy storage system for use

Qualified Rehabilitated Building

with electric or hybrid-electric motor vehicles;

To be a qualified rehabilitated building, your building must meet

Electric grids to support the transmission of intermittent

all five of the following requirements.

sources of renewable energy, including storage of the energy;

Property designed to capture and sequester carbon dioxide

1. The building must have been placed in service (see

requirement four) prior to 1936 unless it is a certified historic

emissions;

structure. A certified historic structure is any building (a) listed in

Property designed to refine or blend renewable fuels or to

the National Register of Historic Places, or (b) located in a

produce energy conservation technologies (including

registered historic district (as defined in section 47(c)(3)(B)) and

energy-conserving lighting technologies and smart grid

certified by the Secretary of the Interior as being of historic

technologies);

significance to the district. Certification requests are made

New qualified plug-in electric drive motor vehicles (as defined

through your State Historic Preservation Officer on National Park

in section 30D), or components which are designed specifically

Service (NPS) Form 10-168a, Historic Preservation Certification

for use with those vehicles, including electric motors, generators,

Application. The request for certification should be made prior to

and power control units; and

physical work beginning on the building.

Other advanced energy property designed to reduce

greenhouse gas emissions.

2. The building must be substantially rehabilitated. A

building is considered substantially rehabilitated if your qualified

A qualifying advanced energy project doesn't include any

rehabilitation expenditures during a self-selected 24-month

portion of a project for the production of any property that is used

period that ends with or within your tax year are more than the

in the refining or blending of any transportation fuel (other than

greater of $5,000 or your adjusted basis in the building and its

renewable fuels).

structural components. Figure adjusted basis on the first day of

the 24-month period or the first day of your holding period,

Eligible property. Eligible property is property that is

whichever is later. If you are rehabilitating the building in phases

necessary for the production of property described in section

under a written architectural plan and specifications that were

48C(c)(1)(A)(i), for which depreciation or amortization is

completed before the rehabilitation began, substitute “60-month

available and is tangible personal property or other tangible

period” for “24-month period.”

property (not including a building or its structural components),

but only if the property is used as an integral part of the

3. Depreciation must be allowable with respect to the

qualifying advanced energy project.

building. Depreciation isn't allowable if the building is

permanently retired from service. If the building is damaged, it

Transitional rule. Enter only the basis:

isn't considered permanently retired from service where the

Attributable to constructed, reconstruction, or erection by the

taxpayer repairs and restores the building and returns it to actual

taxpayer after February 17, 2009;

service within a reasonable period of time.

Of property acquired and placed in service after February 17,

2009; and

4. The building must have been placed in service before the

Only to the extent of the qualified investment (as determined

beginning of rehabilitation. This requirement is met if the building

was placed in service by any person at any time before the

under section 46(c) and (d) as in effect on November 4, 1990)

rehabilitation began.

with respect to qualified progress expenditures made after

February 17, 2009.

5. For a building other than a certified historic structure (a) at

least 75% of the external walls must be retained with 50% or

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more kept in place as external or internal walls, and (b) at least

75% of the existing internal structural framework of the building

When using this line to figure amounts on other tax forms or

must be retained in place.

worksheets, this line should be considered to be zero.

Qualified Rehabilitation Expenditures

To be qualified rehabilitation expenditures, your expenditures

must meet all six of the following requirements.

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Instructions for Form 3468 (2016)

Instructions For Form 3468 - 2016 Page 4

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