com 3468 Computation of Investment Credit

P attach to your tax return.

Department of the Treasury P Schedule B (Business Energy Investment Credit) on back.
Internal Revenue Service

OMB No. 1545-0155,

1983

Name(s) as shown on return

Identifying number

PART I.—Elections (Check the box(es) below that apply to you (See Instruction D).)

A lelect to increase my qualified investment to 100% for certain commuter highway vehicles under section 46(c)(6)
B__lelect to increase my qualified investment by all qualified progress expenditures made this and all later tax years .

Enter total qualified progress expenditures included in column (4), Part Il B
C_I claim full credit on certain ships under section 46(g)(3) (See Instruction B for details.) .

PART I1.—Qualified Investment

@ @ ) @
1 Recovery Property Line Class of Unadjusted Basis Applicable Qualified Investment
Property Percentage (Column 2 x column 3)
New (a) 3-year 60
Regular Property |" (b) Other 100
Percentage Used © 3-year 60
Property @) Other 100
New ) 3-year 40
Section 48(q) Election to Property (f) Other 80
Reduce Credit (instead
of adjusting basis) Used ) 3-year 40
Property | (h) Other 80
2  Nonrecovery property—Enter total qualified investment (See instructions for line 2) 2
3 New commuter highway vehicle—Enter total qualified investment (See Instruction D(1)) .
4 Used commuter highway vehicle—Enter total qualified investment (See Instruction D(1)) . . . . . 4
5 Total qualified investment in 10% property—Add lines 1(a) through 1(h), 2, 3, and 4 (See instructions for
special limits). . 5
6 Qualified rehabilitation expenditures—Enter total qualities investment for:
30-year-old buildings . 6a _
6b

b 40-year-old buildings . Ce
c Certified historic structures (See instructions) woe oa eee woe. | 6O

PART III.—Tentative Regular Investment Credit

7 lO%oflineS 2... |
B 15%ofline6a, wee ee ee LB
9 20% of ine 6b . a
10 25%ofline6c. er
11 Credit from cooperative—Enter regular investment credit from cooperatives. ... ....... , LL]
12 Current year regular investment credit—Add lines 7 through]1. . ee ee [2
13 Carryoverofunusedcredis. © 2. 2. ee ee eee. LI
14 Carryback of unused credits . Se ee ee ee E14 |
15 _ Tentative regular investment credit—Add lines 12, 13,and14__ . _. . 15

PART IV.—Tax Liability Limitations

16 a _Individuals—From Form 1040, enter tax from line 38, page 2, plus any additional taxes from Form 4970 .

b Estates and trusts—From Form 1041, enter tax from line 26a, plus any section 644 taxontrusts. .$. . | 16
© Corporations (1120 filers)—From Form 1120, Schedule J, enter tax from line 3
d Other organizations—Enter tax before credits from return . :
17 a _Individuals—From Form 1040, enter credits from lines 41 and 42 of page 2.
b Estates and trusts—From Form 1041, enter any foreign tax credit from line 27a. .
¢ Corporations (1120 filers) From Form 1120, Schedule J, enter any foreign tax credit from line aa), v7
plus any possessions tax credit from line 4(f) .
4 Other organizations—Enter any foreign or possessions tax credit
18 Income tax liability as adjusted (subtract line 17 from line 16) . 18
19a

19 a Enter smaller of line 18 or $25,000. See instruction for line 19 .

b_ Ifline 18 is more than $25,000—Enter 85% of the excess... . ee cs

20 Regular investment credit limitation—Add lines 19a and 19b . 20
21 Allowed regular investment credit—Enter the smaller of line 15 or line 20 . 21
22 Business energy investment credit limitation—Subtract line 21 from line 18 . 22
23 Business energy investment credit—From line 14 of Schedule B. S

24 — Allowed business energy investment credit—Enter smaller of line 22 or line 23.

25 Total allowed regular and business energy investment credit—Add lines 21 and 24. Enter here ‘and on 11 Form
1040, line 43; Schedule J (Form 1120), line 4(b), page 3; or the proper line onotherreturns. . . . . . . | 25

For Paperwork Reduction Act Notice, see separate instructions.

Form 3468 (1983)


Form 3468 (1983)

Page 2

Schedule B.—Business Energy Investment Credit

1. Enter on lines 1(a) through 1(e) your qualified investment in business energy property that is the kind listed in the instructions for line 1, column (2).

@ @ @) @) ©)
Type of Property Line Class of Property Code Unadjusted Basis/ Applicable Qualified Investment.
or Life Years Basis Percentage (Column 3 x column 4)
Recovery @ Syear 60
() Other 100
© 3 or more but less than 5 33%
Nonrecovery @® 5 or more but less than 7 66%
(0) 7 or more 100
2 Total 10% energy investment property—Add lines 1(a) through 1(e), column (5)_. 2

3. Enter on fines 3(a) through 3(¢) the basis in qualified hydroelectric generating property. Enter

nameplate capacity of the property (see instructions for

line 3) >
@ Byear 60
Recovery ) Other = 100
(©_|__3 or more but less than 5 33%
Nonrecovery (d) 5 or more but less than 7 66%
(e) 7 or more = 100
4 Total 11% energy investment property—Add lines 3(a) through 3(e), column (5). 4

5 Enter on lines 5(a) through 5(e) the basis in energy property that is solar equipment, wind

equipment. (See instructio

ns for line 5, column (2).)

equipment, ocean thermal equipment, or geothermal

Recovery (@) S-year 60

(b) Other 100

(c) 3 or more but less than 5 33%

Nonrecovery (d) 5 or more but less than 7 66%

(e) 7 or more 100
6 Total 15% energy investment property—Add lines 5(a) through 5(e), column (5) . 6
7 Enter 10% of line 2 7
8 Enter 11% of line 4 8
9 Enter 15% of line 6 _ 9
10 Cooperative credit—Enter business energy investment: credit from cooperatives 10
11 Current year business energy investment credit—Add lines 7 through 10 . iL
12 Carryover of unused credit(s) . 12
13 Carryback of unused credit(s) . Loe 13

14 Tentative business energy investment credit Add lines n through 13. ‘Enter here and

on line 23 of page 1. 14

Instructions for Schedule B
(Form 3468)
Energy property must meet the same.

requirements as regular investment credit
property, except that the provisions of

sections 48(a)(1) and 48(a)(3) do not apply.

See Instructions for Form 3468 for
definitions and rules regarding regular
investment credit property.

Energy property must be acquired new.
See sections 46(a)(2)(C) and 48(1)(1)
through (17) for details.

See section 48(!)(17) for special rules on
public utility property, and section 48(|)(11)
(as amended by the Crude Oil Windfall
Profit Tax Act of 1980) for special rules on
property financed by Industrial
Development Bonds.

Specific Instructions

One Credit Only.—If property qualifies as
more than one kind of energy property, you
may take only one credit for the property.

“Lines 1 3 and S—Type of

Property. “For definition of recovery and
nonrecovery property, see the separate
Instructions for Form 3468.

Line 1—Column (2).—Use the code
letters from the following list to indicate the
kind of property for which you are claiming
acredit. If you enter more than one kind of
property ona line, enter the code letter for
each kind of property in column (2) and the
code letter and dollar amount of each kind
of property in the right hand margin.

The code letters are:
a. Biomass property

b. Qualified intercity buses (see section
48(|)(16)(C) for the limitation on
qualified investment for intercity buses
based on the increase in operating
seating capacity).

Line 3.—Figure your qualified investment
in hydroelectric generating property. If the
installed capacity is more than 25

megawatts, the 11% energy credit is
allowed for only part of the qualified
investment. See section 48(1)(13)(C).

In the space provided in line 3, enter the
megawatts capacity of the generator as
shown on the nameplate of the generator.
Line 5—Column (2).—Use the code
letters from the following list to indicate the
kind of property for which you are claiming
acredit. Be sure to put the code or codes on
the line for the correct recovery period or
life years as explained in the instruction for
line 1, column (2).
¢. Solar equipment (but not passive solar

equipment)

d. Wind equipment
e. Ocean thermal equipment

f. Geothermal equipment
See sections 48(1)(4) and 48(1)(3)(A)(viii)

and (ix) for definitions and special rules that
apply to these kinds of property.