Page 31 - IRS Business Tax Credits Guide

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
earlier lines must also report the above credits on line 19.
Line 9 Fileid: … ions/i8835/2022/a/xml/cycle05/source 12:28 - 3-Feb-2023
This line is reserved for future use. All others not using earlier lines to figure a separate credit
can report the above credits directly on the applicable line
Line 10 of Form 3800, Part III, line 1f or line 4e.
This line is reserved for future use. Line 20

Line 12 Partnerships that own and produce electricity from
Enter the sum for this and all prior tax years of: qualified wind facilities should see Rev. Proc. 2007-65,
• Grants provided by the United States, a state, or 2007-45 I.R.B. 967, as modified by Announcement
political subdivision of a state for the project; 2009-69, 2009-40 I.R.B. 475, for information on how to
• Proceeds of a tax-exempt issue of state or local allocate the credit. Rev. Proc. 2007-65 is available at
government obligations used to provide financing for the IRS.gov/irb/2007-45_IRB/ar18.html, and Announcement
project; 2009-69 is available at
• Total of subsidized energy financing provided directly IRS.gov/irb/2009-40_IRB/ar16.html.
or indirectly under a federal, state, or local program Line 21
provided for the project;
• The amount of any federal tax credit allowable for any Cooperative election to allocate credit to patrons. A
property that is part of the project, and cooperative described in section 1381(a) that is more than
• With respect to qualified facilities, the construction of 50% owned by agricultural producers or by entities owned
which began after August 16, 2022, enter the proceeds of by agricultural producers can elect to allocate any part of
a tax-exempt issue of state or local government the credit among the patrons of the cooperative. The
obligations used to provide financing for the qualified credit is allocated among the patrons eligible to share in
facility. patronage dividends on the basis of the quantity or value
of business done with or for such patrons for the tax year.
Line 15 If the cooperative is subject to the passive activity rules,
For qualified facilities, the construction of which began include on line 19 any renewable electricity, refined coal,
after August 16, 2022, enter the amount which is a and Indian coal production credit from passive activities
product of the amount of the credit (line 5) and the smaller disallowed for prior years and carried forward to this year.
of 15% or line 14. Complete Form 8810, Corporate Passive Activity Loss

Line 17a and Credit Limitations, to determine the allowed credits
that can be allocated to patrons. For details, see the
Only enter on line 17a the amount included on line 16 Instructions for Form 8810.
applicable to wind facilities, the construction of which The cooperative is deemed to have made the election
began during 2017. by completing line 21, as applicable. However, the
Line 17c election isn't effective unless (a) made on a timely filed
Only enter on line 17c the amount included on line 16 return (including extensions), and (b) the organization
designates the apportionment in a written notice mailed to
applicable to wind facilities, the construction of which its patrons during the payment period described in section
began during 2018, 2020, or 2021. 1382(d) or on Form 1099-PATR.

Line 17e If you timely file your return without making an election,
Only enter on line 17e the amount included on line 16 you can still make the election by filing an amended return
applicable to wind facilities, the construction of which within 6 months of the due date of the return (excluding
began during 2019. extensions). Enter “Filed pursuant to section 301.9100-2”
on the amended return.
Line 19 Once made, the election can’t be revoked.
Enter total renewable electricity production credits from: Estates and trusts. Allocate the credit on line 20
• Schedule K-1 (Form 1065), Partner’s Share of Income, between the estate or trust and the beneficiaries in the
Deductions, Credits, etc., box 15 (code P); same proportion as income was allocated and enter the
• Schedule K-1 (Form 1120-S), Shareholder’s Share of beneficiaries’ share on line 21.
Income, Deductions, Credits, etc., box 13 (code P); If the estate or trust is subject to the passive activity
• Schedule K-1 (Form 1041), Beneficiary’s Share of rules, include on line 19 any renewable electricity, refined
Income, Deductions, Credits, etc., box 13 (code J); and coal, and Indian coal production credit from passive
• Form 1099-PATR, Taxable Distributions Received activities disallowed for prior years and carried forward to
From Cooperatives, box 12. this year. Complete Form 8582-CR, Passive Activity
Partnerships and S corporations must always report on Credit Limitations, to determine the allowed credit that
line 19 the above credits related to renewable electricity must be allocated between the estate or trust and the
production. Also, estates and trusts that can allocate the beneficiaries. For details, see the Instructions for Form
source credit to beneficiaries and cooperatives that can 8582-CR.
allocate the credit to patrons must always report on line 19
the above credits related to renewable electricity Paperwork Reduction Act Notice. We ask for the
production. All other filers figuring a separate credit on information on this form to carry out the Internal Revenue

-6- Instructions for Form 8835 (2022)