com 3468 Computation of Investment Credit OMB No. 1545-0155

> Attach to your tax return. 1 e) 8 8

Department of the Treasury > Schedule B (Business Energy Investment Credit) on back. Attachment
Internal Revenue Service Sequence No. 52
Name(s) as shown on return Identifying number

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

A lelect to increase my qualified investment by all qualified progress expenditures (QPE) made this and all later tax years. ...0
Enter totai qualified progress expenditures included in column (4), Part Il >. -
B_Iclaim fuil credit on certain ships under section 46(g)(3) (See Instruction B fordetails). . . wee _.0
[Part 11 Qualified Investment (Certain Transition Property, QPE Property, and Qualified Timber Property
ay (2) (3) (4)
7 Recovery Proper ‘re | Gasse! | costorotneraans | ARE | Quai ces
New (a) 3-year 60
Regular Property (b) Other 100
Percentage Used (c) 3-year 60
Property (dd) Other 100
2 Nonrecovery property—Enter total qualified investment (See instructions forline2). . . . 2
3 Total qualified investment in 10% property—Add lines 1@) through 1). column ar and line 2
(See instructions for special limits) 3
4 Regular credit—(See instructions for line 4 for amount to enter) oe 4
5 Qualified rehabilitation expenditures (enter qualified investment and multiply by percentage shown):
a Transition Property and Certain Projects:
(i) 30-year-old buildings . . . . a Se x 10% |Sa(i)
(ii) 40-year-old buildings. . Lo x 13% |Saiii)
(iii) Certified historic structures (attach NPS certificate) . Lo x 25% [Salil
b Rehabilitation Property (not shown above):
(i) Pre-1936 buildings. . ce x 10% [Sb
(ii) Certified historic structures (attach NPS certificate) . . . x 20% [Sbéi)
6 Credit from cooperatives—Enter regular investment credit from cooperatives oe. [6
7 Business energy investment credit—From line 6 of Schedule B (see back of this form) . fe . (7
8 Current year investment credit—Add lines 4 through line 7 8

Note: if you have a 1988 jobs credit (Form 5884), credit for alcohol used as fuel (Form 6478), “Fesearch credit (Form 6768), or low-income housing credit (Form
8586) in addition to your 1988 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 1988 investment credit. If you have only a 1988 investment credit (which may include business energy investment
credit), you may continue with lines 9 through 16 to claim your credit.

GREELY Tax Liability Limitations
Ya Individuals—From Form 1040, enteramount fromline4O . . .
b Corporations—From Form 1120, Schedule J, enter tax from line 3 (or Form 1120-4, Part, line D
¢ Other filers—Enter income tax before credits from return Lo Foe
10a Individuals—From Form 1040, enter credits from lines 41, 42, and 43, plus any orphan drug
credit, mortgage interest credit, and nonconventional source fuel credit included on line 46 .
Corporations—From Form 1120, Schedule J, enter credits from lines 4a through 4d d (Form
1120-A filers, enter zero)
Other fiters—See instructions for line 110 tee rrr 10
11 Income tax liability as adjusted (subtract line 10 fromline9). . . . . . - eens 26
12 Tentative minimum tax—
Individuals—From Form 6251, enteramountfromline17 2 2 2. ee ee }

oc

°

oo

Corporations—From Form 4626, enter amount from line 13 .
Estates and Trusts—From Form 8656, enter amount from Part Ill, line 10
13 Net income tax—
a Individuals—Enter the sum of line 11, above, and line 19 of Form6251_ ee |

12

°

b Corporations—Enter the sum of line 11, above, and line 16 of Form 4626
¢ Other filers—See instructions for line 13c rr 13
14 Ifline 11 is more than $25,000—Enter 25% of the excess (see Instructions) . toe 14
15 Enter—Line 13 less whichever is greater, line 12 or line 14. (if the result is less than zero, enterzero. ) 15

16 Total aliowed credit—Enter the smalier of line 8 or line 15 (corporations, see instructions) —This is
your General Business Credit for 1988. Enter here and on Form 1040, line 44; Form 1120,
Schedule J, line 4e; Form 1120-A, Part |, line 2a; or the proper line ofotherreturns . . . . 16

For Paperwork Reduction Act Notice, see separate instructions. Form 3468 (1988)


Form 3468 (1988)

Page 2

Schedule B.—Business Energy Investment Credit

1 Enteron lines 1(a) through 1(e) your qualified investment in business energy property.

q) (2) @) (4) (5)
Type of Property bine Class of Property Code Basis Applicable Qualified Investment
or Life Years Percentage (Column 3x column 4)
(a) 3-year 60
Recovery @) 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
2 Total qualified investment—Add lines 1(a) through 1(e), column (5) . 2
3 > Multiply the portion of the line 2 amount attributable to the following types of property by the
applicable percentages:
a Solar energy property (10%) 3a
b Geothermal property (10%) 3b
c Ocean thermal property (15%) 3c
4 Certain other property (See instructions below for special limits):
a Certain long-term section 46(b)(2)(C) projects under way by 12-31-82 (10%) 4a
b Hydroelectric generating property placed in service by 12-31-88 (if docketed with the Federal
Energy Regulatory Commission by 12-31-85) (11%) . : oe 4b
5 Cooperative credit—Enter business energy investment credit from cooperatives 5
6 Tentative business enerey investment credit—Add lines 3a 3a through 5. Enter here and on line 7 of 6
page

Instructions for Schedule B
(Form 3468)

Items You Should Note

The business energy investment credit for
solar energy property, geothermal property
and ocean thermal property scheduled to
expire on December 31, 1988, has been
extended until December 31, 1989. See
section 46(b)(2)(A) for details.

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(|)(17) for special rules on
public utility property, and section 48(I)(11)
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.

Line 1—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 on aline, 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. Hydroelectric generating property
b. Solar equipment (but not passive

solar equipment)
c. Ocean thermal equipment
d. Geothermal equipment

See sections 48(|)(4) and 48(1)(3)(A)(viii)
and (ix) for definitions and special rules that
apply to these kinds of property.
Line 4.—You must reduce the basis for
depreciation by the full amount of the credit
claimed.

If the installed capacity of hydroelectric
generating property is more than 25
megawatts, the 11% energy credit is

allowed for only part of the qualified
investment. See section 48(1)(13)(C).

On the dotted line for line 4b, enter the
megawatt capacity of the generator as
shown on the nameplate of the generator.

You must reduce the energy credit(s) on
lines 4a and 4b by 35%. Enter the reduced
credit on these lines.

If you use all of the reduced credit in the
current year, then none of the reduction
may be carried to any other year.

If you are able to use only a portion of
the reduced credit in the current year
because you are limited by the tax liability
limitations, then you may carry forward to
your next year the unused portion of the
reduced credit and a corresponding portion
of the 35% reduction. If, for example, you
are able to use half of the reduced credit in
1988, then you may carry forward the other
half of the reduced credit and half of the
reduction

If you are not able to use any of the
reduced credit because of the tax liability
limitations, then you may carry forward to
your next year the entire credit (both the
reduced credit and the reduction).

+ U.S, GPO:1989-245-509/99163