OMB No. 1545-1282 Enhanced Oil Recovery Credit

Form 8830

 Attach to your tax return. Attachment

Sequence No. 78 Department of the Treasury

Internal Revenue Service

Name(s) shown on return Identifying number

Current Year Credit 

1 Qualified enhanced oil recovery costs (see instructions) 1

2 Multiply line 1 by 15% (.15) 2

3

4

Enhanced oil recovery credits

from pass-through entities:

3 If you are a— Then enter the total of the current year credits from—

a Shareholder Schedule K-1 (Form 1120S), Box 13, code F, G, or U

b Partner Schedule K-1 (Form 1065), Box 15, code F, G, or U

4

Form 8830 (2005)

Part I



Current year credit. Add lines 2 and 3

Cat. No. 13059B

Section references are to the Internal

Revenue Code unless otherwise noted.

Use Form 8830 to claim the enhanced oil

recovery credit.

The credit generally is 15% of qualified

costs for the year, but is reduced when the

reference price per barrel exceeds the

base value of $28 (as adjusted by inflation).

For 2005, there is no reduction of the

credit.

General Instructions

An owner of an operating mineral

interest may claim or elect not to claim this

credit any time within 3 years from the due

date (excluding extensions) of its return on

either its original or an amended return.

This credit is part of the general business

credit.

Purpose of Form

Amount of Credit

For Paperwork Reduction Act Notice, see page 2.

Allowable Credit (See Who must file Form 3800 to find out if you complete Part II or file Form 3800.)

● Individuals. Enter the amount from Form 1040, line 44

5

Corporations. Enter the amount from Form 1120, Schedule J, line 3; Form 1120-A,

Part I, line 1; or the amount from the applicable line of your return

●

●

8a 8a

Credits from Form 1040, lines 48 through 54 8b

Foreign tax credit

Possessions tax credit (Form 5735, line 17 or 27)

Nonconventional source fuel credit (Form 8907, line 23)

Other specified credits (see instructions)

Add lines 8a through 8e 8f

9 Net income tax. Subtract line 8f from line 7. If zero, skip lines 10 through 13 and enter -0- on line 14 9

6 Alternative minimum tax:

● Individuals. Enter the amount from Form 6251, line 35

● Corporations. Enter the amount from Form 4626, line 14 6

● Estates and trusts. Enter the amount from Form 1041, Schedule I, line 56

10

Tentative minimum tax (see instructions):

● Individuals. Enter the amount from Form 6251, line 33

11

● Corporations. Enter the amount from Form 4626, line 12

● Estates and trusts. Enter the amount from Form 1041,

Schedule I, line 54

11 Enter 25% (.25) of the excess, if any, of line 10 over $25,000 (see

instructions)

13

Subtract line 13 from line 9. If zero or less, enter -0-

13

14

Credit allowed for the current year. Enter the smaller of line 4 or line 14 here and on Form

1040, line 55; Form 1120, Schedule J, line 6d; Form 1120-A, Part I, line 2; Form 1041, Schedule

G, line 2c; or the applicable line of your return. If line 14 is smaller than line 4, see instructions 15

Part II



5 Regular tax before credits:

7 Add lines 5 and 6 7

12

Enter the greater of line 11 or line 12

 12

c

d

e

8c

8d

Estates and trusts. Enter the sum of the amounts from Form 1041, Schedule G, lines 1a

and 1b, or the amount from the applicable line of your return

Net regular tax. Subtract line 8f from line 5. If zero or less, enter -0-

15

14



8e

f

10

2005

2. Any intangible drilling and

development costs—

b. For which the taxpayer may make an

election under section 263(c). For an

integrated oil company, this includes

intangible drilling costs required to be

amortized under section 291(b).

Definitions

Qualified enhanced oil recovery costs

means:

a. That is an integral part of a qualified

enhanced oil recovery project and

b. For which depreciation (or

amortization) is allowable.

1. Any amount paid or incurred during

the tax year for tangible property—

a. That are paid or incurred in

connection with a qualified enhanced oil

recovery project and

3. Any qualified tertiary injectant

expenses (as defined in section 193(b))

paid or incurred in connection with a

qualified enhanced oil recovery project for

b
Form 8830 (2005) Page 2

which a deduction is allowable for the tax

year. Qualified tertiary injectant expenses

includes expenditures related to the use of

a tertiary injectant as well as expenditures

related to the acquisition (whether

produced or acquired by purchase) of the

tertiary injectant. However, it does not

include costs that would have been paid or

incurred in the development or operation of

a mineral property if an enhanced oil

recovery project had not been implemented

with respect to the property. Costs that are

related to the use of a tertiary injectant and

that also are related to other activities (for

example, primary or secondary recovery)

must be reasonably allocated among the

tertiary injectant and the other activities to

determine the amount of tertiary injectant

expenses paid or incurred for the tax year.

For more details, see Rev. Rul. 2003-82,

2003-30 I.R.B. 125.

Qualified enhanced oil recovery project

means any project involving the application

of one or more tertiary recovery methods

defined in section 193(b)(3) (and listed

below) that can reasonably be expected to

result in more than an insignificant increase

in the amount of crude oil that will ultimately

be recovered. The project must be located

within the United States, including the

seabed and subsoil adjacent to the

territorial waters of the United States over

which the United States has exclusive rights

by international law for exploration and

exploitation of natural resources (see

section 638(1)). The first injection of liquids,

gases, or other matter must begin after

1990. However, any significant expansion

after 1990 of a project begun before 1991 is

treated as a project where the first injection

begins after 1990.

Additionally, the operator or designated

owner must file a certification from a

petroleum engineer, who is registered or

certified by a state, that the project meets

the above requirements. The operator or

designated owner also must file a

certification each subsequent year

indicating that the project continues to be

implemented substantially in accordance

with the petroleum engineer’s certification.

Specific Instructions

Figure any enhanced oil recovery credit

from your own trade or business on lines 1

and 2. Skip lines 1 and 2 if you are only

claiming a credit that was allocated to you

from an S corporation or a partnership.

Line 1

Line 15

● Cyclic-steam injection,

● Alkaline (or caustic) flooding,

● Carbonated water flooding,

● Immiscible nonhydrocarbon gas

displacement, or 

● Any other method approved by the

Secretary of the Treasury.

Who must file Form 3800. You must file

Form 3800 if you have: 

Part I

Line 12

If the application of a tertiary recovery

method is terminated, the operator or

designated owner must file a notice of

project termination for the tax year when

the project terminates.

Reduce the otherwise allowable

deductions for line 1 costs by the line 2

credit attributable to these costs. Also, if

any part of the line 1 costs are for

expenditures that increase the basis of

property, reduce the otherwise allowable

basis increase by the line 2 credit

attributable to these costs.

Line 11

S Corporations and Partnerships

Figure the total credit on lines 1 through 4.

Then allocate the line 4 credit among the

individual shareholders or partners in the

same way that income and loss are

shared. Electing large partnerships include

this credit in “general credits.”

The time needed to complete and file

this form will vary depending on

individual circumstances. The estimated

burden for individual taxpayers filing this

form is approved under OMB control

number 1545-0074 and is included in the

estimates shown in the instructions for

their individual income tax return. The

estimated burden for all other taxpayers

who file this form is shown below.

Recordkeeping 5 hr., 15 min.

Learning about the

law or the form 53 min.

Preparing and

sending the form

to the IRS 1 hr., 1 min.

Paperwork Reduction Act Notice. We

ask for the information on this form to

carry out the Internal Revenue laws of the

United States. You are required to give us

the information. We need it to ensure that

you are complying with these laws and to

allow us to figure and collect the right

amount of tax.

The credit allowed for the current year may

be limited based on your tax liability. Use

Part II to figure the allowable credit unless

you must file Form 3800, General Business

Credit.

See the instructions for Form 3800 to

find out which credits are included in the

general business credit.

Send these filings to the Ogden

Submission Processing Center, P.O. Box

9941, Ogden, UT 84409, by the due date

of the operator’s or designated owner’s

Federal income tax return. See Regulations

section 1.43-3 for the information required

in the notice and certifications.

Part II

You are not required to provide the

information requested on a form that is

subject to the Paperwork Reduction Act

unless the form displays a valid OMB

control number. Books or records relating

to a form or its instructions must be

retained as long as their contents may

become material in the administration of

any Internal Revenue law. Generally, tax

returns and return information are

confidential, as required by section 6103.

Enter the total of the qualified costs paid

or incurred during the year in connection

with a qualified enhanced oil recovery

project. See Definitions above.

Although you may not owe alternative

minimum tax (AMT), you generally must

still compute the tentative minimum tax

(TMT) to figure your credit. For a small

corporation exempt from the AMT under

section 55(e), enter zero. Otherwise,

complete and attach the AMT form or

schedule and enter the TMT on line 12.

If you cannot use all of your credit because

of the tax liability limit (line 14 is smaller

than line 4), carry the unused credit back 1

year and then forward up to 20 years. See

the instructions for Form 3800 for details.

See section 38(c)(5) for special rules that

apply to married couples filing separate

returns, controlled corporate groups,

regulated investment companies, real estate

investment trusts, and estates and trusts.

● An enhanced oil recovery credit from a

passive activity,

● More than one credit included in the

general business credit (other than a credit

from Form 8844, Form 6478, or Section B

of Form 8835), or 

● A carryback or carryforward of any of

those credits.

Allowable Credit

Current Year Credit

4. Any amount paid or incurred during

the tax year to construct an Alaska natural

gas plant within the meaning of sections

43(c)(1)(D) and 43(c)(5).

If you have comments concerning the

accuracy of these time estimates or

suggestions for making this form simpler,

we would be happy to hear from you. See

the Instructions for the tax return with

which this form is filed.

Line 8e

Include on line 8e any amounts claimed

on:

● Form 8834, Qualified Electric Vehicle

Credit, line 20;

● Form 8910, Alternative Motor Vehicle

Credit, line 18; and

● Form 8911, Alternative Fuel Vehicle

Refueling Property Credit, line 19.

Tertiary recovery methods qualifying for

the credit include:

● Miscible fluid displacement,

● Steam drive injection,

● Microemulsion flooding,

● In situ combustion,

● Polymer-augmented water flooding,