com 0468 Computation of Investment Credit OMB No, 1545-0155

> Attach to your tax return. q 9 8 5
Department of the Treasury > Schedule B (Business Energy Investment Credit) on back.

Internal Revenue Service (0)

Name(s) as shown on return’ Identifying number

j Part | 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 placed in service before January 1, 1986 (section 46(c)(6)) C]

B [elect to increase my qualified investment by all qualified progress expenditures made this andalllatertaxyeas. . 2... . 2... O
Enter total qualified progress expenditures included in column (4), Part Il
cl an full credit on certain ships under section 46(g)(3) (See Instruction B for details.) . oO
Qualified Investment (See instructions for rules on automobiles and other property with any ‘personal use)
LR p e)) @) @) Co)
seoven Propeny we) gases Costor other sass | Appteane | Quaites rece)
New @) 3-year 60
Regular Property (b) Other 100
Percentage Used (©) 3-year 60
Property (d) Other 100
New @) 3-year 40
Section 48(q) Election to Property OG Other F)
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)) . 3
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 qualified investment for
a 30-year-old buildings 6a
b 40-year-old buildings tee. 8b
¢. Coftified historic structures (You must attach NPS certfication—see instructions)... ._. | 6e |
Tentative Regular Investment Credit
7 10% of line 5 La
8 15% of line 6a . &
9 20% of line 6b . 9
10 25% of line 6c . 10
11 Credit from cooperatives Enter regular investment credit from cooperatives i
12 Regular investment credit—Add lines 7 through 11 . Le 12
13 Business energy investment credit—From line 11 of Schedule B (see pack ofthisform). . . . . 13
14 Current year investment credit—Add lines 12and13_. . 14
Note: /f you have a 1985 jobs credit (Form 5884), credit for alcohol Tsed as fuel (Form 6478), or employee stock ownership plan (ESOP) credit (Form
8007) in addition to your 1985 investment credit, or if you have a carryback or carryforward of any general business credit, stop here and go to Form
3800, General Business Credit, to claim your 1985 investment credit. If you have only a 1985 investment credit (which may include business energy
investment credit), you may continue with lines 15 through 20 to claim your credit.
Tax Liability Limitations _
15 a Individuals—From Form 1040, enter amount from line 46 .
b Corporations—From Form 1120, Schedule J, enter tax from line 3 (or Form 1120., Part |, line 1). of 15
¢ Other filers —Enter income tax before credits from return
16 a Individuals—From Form 1040, enter credit from ine 47, plus any orphan drug, nonconventional
source fuel, and research credits included on line 49
b Corporations—From Form 1120, Schedule J, enter credits from lines (a) ‘rough ae) (Form dl a6
1120-A filers, enter zero)
© Other filers—See instructions for line 16c . :
17 Income tax liability as adjusted (subtract line 16 from line 15). 17
18 a Enter smaller of line 17 or $25,000. (See instructions for line 18) 18a
b Ifline 17 is more than $25,000—Enter 85% of the excess. 18b
19 Investment credit limitation—Add lines 18a and 18b 19
20 Total allowed credit—Enter the smaller of line 14 or line 19. This is your General Business Credit for 1985
Enter here and on Form 1040, line 48; Form 1120, Schedule J, line ah: Form 1120-A, Part |, line 2 ; or the
proper line of other returns... : : 20

For Paperwork Reduction Act Notice, see separate instructions. Form 3468 (1985)


Form 3468 (1985)

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)

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

3 Enter be ‘3(a) through 3(e) the basis in qualified hydroelectric generating property. Enter

nameplate capacity of the property (See instructions for

line 3.)
Recovery 2) Syear £0
(6) Other 100
(c) [__3 or more but less than 5 33%
Nonrecovery [(d) | _5 or more but less than 7 66%
@) 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, ocean thermal equipment, or geothermal

equipment. (See instructions for line 5, column (2).)

Recovery (a) Syear 60

(b) Other 100

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

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

© 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 re _ _ 9
10 Cooperative credit—Enter business energy investment credit from cooperatives 10

11 Tentative business energy investment credit—Add lines 7 through 10. Enter here and

online 13 of page 1 2. 11

Fiscal Year Filers
The business energy investment credits
shown on this page may be claimed only
for energy property placed in service by
December 31, 1985 (except for certain
hydroelectric generating property, which
may be placed in service by December
31, 1988).

At the time we printed this form it was
uncertain whether Congress would
extend this deadline. We will use news
media and other means available to
provide you with information and

instructions on any change.

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

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

See section 48(1)(17) for special rules on
public utility property, and section 48(1)(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 5—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
a credit. If you enter more than one kind of
property on a 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 instructions for
line 1, column (2).

c. 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.

#U,S, Government Printing Office: 1985-463-224 23-0916750