Instructions For Form 3468 - 2016 (Page 6 of 8) in pdf

Line 12a

Line 12d

Enter the basis of any property placed in service during the tax

Enter the applicable number of kilowatts of capacity attributable

year that uses geothermal energy. Geothermal energy property

to the basis on line 12c.

is equipment that uses geothermal energy to produce, distribute,

Transitional Rule. The increase in the kilowatt limit from

or use energy derived from a geothermal deposit (within the

$1,000 to $3,000 per kilowatt applies only to:

meaning of section 613(e)(2)). For electricity produced by

property (other than property for which you have elected to

geothermal power, equipment qualifies only up to, but not

treat expenditures as qualified progress expenditures) the

including, the electrical transmission stage.

construction, reconstruction, or erection of which is completed

by the taxpayer after October 3, 2008, but only to the extent of

Also enter the basis, attributable to periods before January 1,

the basis thereof attributable to the construction, reconstruction,

2006, of property placed in service during the tax year that uses

or erection during such period;

solar energy to:

property (other than property for which you have elected to

1. Generate electricity,

treat expenditures as qualified progress expenditures) acquired

and placed in service after October 3, 2008; and

2. Heat or cool (or provide hot water for use in) a structure,

property for which you have elected to treat expenditures as

qualified progress expenditures but only to the extent of the

3. Provide solar process heat (but not to heat a swimming

qualified investment with respect to qualified progress

pool).

expenditures made after October 3, 2008.

Basis is attributable to periods before January 1, 2006, if the

Line 12f

property was acquired before January 1, 2006, or to the extent of

basis attributable to construction, reconstruction, or erection by

Enter the basis, attributable to periods after October 3, 2008, of

the taxpayer before January 1, 2006.

any qualified fuel cell property placed in service during the tax

year.

Line 12b

For a definition of qualified fuel cell property, see Line 12c

Enter the basis, attributable to periods after December 31, 2005,

above.

of any property using solar energy placed in service during the

tax year. There are two types of property.

Qualified fuel cell property does not include any property

for any period after 2016.

1. Equipment that uses solar energy to illuminate the inside

of a structure using fiber-optic distributed sunlight.

CAUTION

This does not include any property for any period after

Basis is attributable to periods after October 3, 2008, if the

2016.

property was acquired after October 3, 2008, or to the extent of

basis attributable to construction, reconstruction, or erection by

CAUTION

2. Equipment that uses solar energy to:

the taxpayer after October 3, 2008.

a. Generate electricity,

Line 12g

b. Heat or cool (or provide hot water for use in) a structure,

Enter the applicable number of kilowatts of capacity attributable

to the basis on line 12f. This entry must be a whole number.

c. Provide solar process heat (but not to heat a swimming

pool).

Transitional Rule. For transitional rules, see Line 12d.

Basis is attributable to periods after December 31, 2005, if

Line 12i

the property was acquired after December 31, 2005, or to the

extent of basis attributable to construction, reconstruction, or

Enter the basis, attributable to periods after December 31, 2005,

erection by the taxpayer after December 31, 2005.

of any qualified microturbine property placed in service during

the tax year. Qualified microturbine property is a stationary

microturbine power plant which generates less than 2,000

Line 12c

kilowatts and has an electricity-only generation efficiency of not

Enter the basis, attributable to periods after December 31, 2005,

less than 26% at International Standard Organization conditions.

and before October 4, 2008, of any qualified fuel cell property

See section 48(c)(2) for further details.

placed in service during the tax year.

Qualified microturbine property does not include any

property for any period after 2016.

Qualified fuel cell property is a fuel cell power plant that

generates at least 0.5 kilowatt of electricity using an

CAUTION

electrochemical process and has electricity-only generation

Basis is attributable to periods after December 31, 2005, if

efficiency greater than 30%. See section 48(c)(1) for further

the property was acquired after December 31, 2005, or to the

details.

extent of basis attributable to construction, reconstruction, or

erection by the taxpayer after December 31, 2005.

Basis is attributable to periods after December 31, 2005, and

before October 4, 2008, if the property was acquired after

December 31, 2005, and before October 4, 2008, or to the

Line 12l

extent of basis attributable to construction, reconstruction, or

Enter the basis, attributable to periods after October 3, 2008, of

erection by the taxpayer after December 31, 2005, and before

any qualified combined heat and power system property placed

October 4, 2008.

in service during the tax year. Combined heat and power system

Qualified fuel cell property does not include any property

property is property that uses the same energy source for the

for any period after 2016.

simultaneous or sequential generation of electrical power,

mechanical shaft power, or both; in combination with the

CAUTION

-6-

Instructions for Form 3468 (2016)

Instructions For Form 3468 - 2016 Page 6

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