Current Year Credit

1b

1

c

Energy credit for periods ending before January 1, 2006. Basis of property using solar or geothermal

energy placed in service during the tax year (see instructions)

2

2

6

7 7

For Paperwork Reduction Act Notice, see instructions. Form 

Part I

Rehabilitation credit (see instructions for requirements that must be met):

b Pre-1936 buildings × 10% (.10)*

Certified historic structures × 20% (.20)*

6

× 10% (.10)

Credit from cooperatives. Enter the unused investment credit from cooperatives

Current year credit. Add lines 1b through 6

1c

Cat. No. 12276E

Check this box if you are electing under section 47(d)(5) to take your qualified rehabilitation

expenditures into account for the tax year in which paid (or, for self-rehabilitated property,

when capitalized). See instructions. Note: This election applies to the current tax year and to

all later tax years. You may not revoke this election without IRS consent 

a

Enter the amount of qualified rehabilitation expenditures and multiply by the percentage shown

e Rehabilitation credit from an electing large partnership (Schedule K-1 (Form 1065-B), box 9) 1e

Enter the assigned NPS project number or the pass-through entity’s

employer identification number (see instructions)

Enter the date that the NPS approved the Request for Certification of

Completed Work (see instructions)

Enter the date on which the 24- or

60-month measuring period begins

Enter the adjusted basis of the building as of the beginning date above

(or the first day of your holding period, if later)

Enter the amount of the qualified rehabilitation expenditures incurred,

or treated as incurred, during the period on line 1d(1) above

$

$

(1)

(2)

(1)

(2)

(3)

d

/ /

/ /

$

$

and ends

$

/ /

3 Energy credit for periods ending after December 31, 2005:

3a

a Basis of property using geothermal energy placed in service during

the tax year (see instructions) $ × 10% (.10)

b Basis of property using solar illumination or solar energy placed in service

during the tax year (see instructions) $ × 30% (.30) 3b

Qualified fuel cell property (see instructions):

$ × 30% (.30) 3c

Basis of property installed during the tax

year

c

× $1,000 3d

Kilowatt capacity of property in c

above 

d

e Enter the lesser of line 3c or 3d 3e

Qualified microturbine property (see instructions):

$ × 10% (.10) 3f

Basis of property installed during the tax

year

f

× $200 3g

Kilowatt capacity of property in f

above 

g

h Enter the lesser of line 3f or 3g 3h

i Total. Add lines 3a, 3b, 3e, and 3h 3i

4 Qualifying advanced coal project credit for periods ending after August 8, 2005 (see instructions):

4a

a Basis of qualified investment in integrated gasification combined cycle property

placed in service during the tax year $ × 20% (.20)

b Basis of qualified investment in property other than in a above placed

in service during the tax year $ × 15% (.15) 4b

5

c Total. Add lines 4a and 4b

Qualifying gasification project credit for periods ending after August 8, 2005 (see instructions). Basis of qualified

investment in property placed in service during the tax year $ × 20% (.20)

4c

5

(*For property located in the Gulf Opportunity Zone, multiply by applicable percentage in the instructions.):
Section references are to the Internal

Revenue Code unless otherwise noted.

General Instructions Purpose of Form

Use Form 3468 to claim the investment

credit. The investment credit consists of

the rehabilitation, energy, qualifying

advanced coal project, and qualifying

gasification project credits.

Investment Credit Property

Investment credit property is any

depreciable or amortizable property that

qualifies for the rehabilitation credit,

energy credit, qualifying advanced coal

project credit, or qualifying gasification

project credit.

You cannot claim a credit for property

that is:

● Used mainly outside the United States

(except for property described in section

168(g)(4));

● Used by a governmental unit or

foreign person or entity (except for a

qualified rehabilitated building leased to

that unit, person, or entity; and property

used under a lease with a term of less

than 6 months);

● Used by a tax-exempt organization

(other than a section 521 farmers’

cooperative) unless the property is used

mainly in an unrelated trade or business

or is a qualified rehabilitated building

leased by the organization;

● Used for lodging or in the 

lodging (see section 50(b)(2) 

exceptions); or

Election for Certain 

Property

If you lease property to some

you may elect to treat all or 

investment in new property a

made by the person who is l

from you. Lessors and lessee

see section 48(d) (as in effec

November 4, 1990) and relat

regulations for rules on maki

election. For limitations, see 

46(e)(3) and 48(d) (as in effec

November 4, 1990).

The cost or basis of property 

investment credit purposes m

limited if you borrowed again

property and are protected a

or if you borrowed money fro

who is related or who has ot

creditor interest in the busine

The cost or basis must be re

the amount of this “nonqualif

nonrecourse” financing relate

The Energy Policy Act of 2005:

What’s New ● That is energy property us

facility that qualifies for a cre

section 45.

At-Risk Limit for Indiv

and Closely Held Corp

8

f

Foreign tax credit 11a

Credits from Form 1040, lines 48 through 54 11b

11a

11d

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

d Nonconventional source fuel credit (Form 8907, line 23)

Other specified credits (see instructions)

Add lines 11a through 11e 11f

12

Net income tax. Subtract line 11f from line 10. If zero, skip lines 13 through 16 and enter -0- on

line 17

9 Alternative minimum tax: Enter the alternative minimum tax (AMT) from the following line of the

appropriate form or schedule 9

12

Tentative minimum tax (see instructions)

13

15

Enter 25% (.25) of the excess, if any, of line 13 over $25,000 (see

instructions)

14

Subtract line 16 from line 12. If zero or less, enter -0-

16 16

Credit allowed for the current year. Enter the smaller of line 7 or line 17 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 17 is smaller than line 7, see instructions 18

b

11c

10 Add lines 8 and 9 10

13

Enter the greater of line 14 or line 15

14

15

e

Net regular tax. Subtract line 11f from line 8. If zero or less, enter -0-

17 17

18

11e

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

● 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 ● Individuals: Form 6251, line 35

● Corporations: Form 4626, line 14

● Estates and trusts: Form 1041, Schedule I, line 56 

● Added two new investment credits for

property placed in service after August

8, 2005—the qualifying advanced coal

project credit and qualifying gasification

project credit.

● Revised energy property to include

equipment placed in service after

December 31, 2005, that uses solar

energy for illumination.

● Added two new energy properties for

the energy credit for property placed in

service after December 31,

2005—qualified fuel cell and qualified

microturbine property.

● Increased the energy percentage from

10 to 30% for solar property placed in

service after December 31, 2005.

The Gulf Opportunity Zone Act of 2005

increased the rehabilitation credit for

certain properties located in the Gulf

Opportunity Zone (GO Zone) for qualified

expenditures paid or incurred after

August 27, 2005, and before January 1,

2009. For the definition of the GO Zone,

see section 1400M and Pub. 4492,

Information for Taxpayers Affected by

Hurricanes Katrina, Rita, and Wilma.
To be a qualified rehabilitat

your building must meet all f

following requirements.

1. The building was origina

service before 1936 or it is a 

historic structure. A certified 

structure is any building (a) li

National Register of Historic 

(b) located in a registered his

(as defined in section 47(c)(3

certified by the Secretary of t

as being of historic significan

district. Certification requests 

through your State Historic P

Officer on National Park Serv

Form 10-168a, Historic Prese

Certification Application. The 

certification must be made p

building being placed in serv

If the adjusted basis of the b

determined in whole or in part 

to the adjusted basis of a pers

than the taxpayer, see Regulat

1.48-12(b)(2)(viii) for additional 

that must be attached.

● Any property to which section 48(b)

applies will no longer qualify as

investment credit property when placed

in service;

● Before the end of the recapture period,

your proportionate interest is reduced by

more than one-third in an S corporation,

partnership (other than an electing large

partnership), estate, or trust that

allocated the cost or basis of property to

you for which you claimed a credit;

● You return leased property (on which

you claimed a credit) to the lessor before

the end of the recapture period; or

● A net increase in the amount of

nonqualified nonrecourse financing

occurs for any property to which section

49(a)(1) applied.

Exceptions to recapture. Recapture of

the investment credit does not apply to

any of the following.

● A transfer due to the death of the

taxpayer.

● A transfer between spouses or incident

to divorce under section 1041. However,

a later disposition by the transferee is

subject to recapture to the same extent

as if the transferor had disposed of the

property at the later date.

● A transaction to which section 381(a)

applies (relating to certain acquisitions of

the assets of one corporation by another

corporation).

or business, and

2. The taxpayer retains a substantial

interest in that trade or business.

A mere change in the form of

conducting a trade or business includes

a corporation that elects to be an S

corporation and a corporation whose S

election is revoked or terminated.

See section 46(g)(4) (as in

effect on November 4, 1990) if

you made a withdrawal from a

capital construction fund set

up under the Merchant Marine Act of

1936 to pay the principal of any debt

incurred in connection with a vessel on

which you claimed investment credit.

For details, see Form 4255, Recapture

of Investment Credit.

Specific Instructions

S Corporations, Partnerships

(Other Than Electing Large

Partnerships), Estates, and

Trusts

If you are a shareholder, partner, or

beneficiary of a pass-through entity, the

entity will provide to you the information

necessary to complete the following:

● Lines 1b, 1c, and 1d for the

rehabilitation credit.

● The basis of energy property for lines

2, 3a, and 3b.

CAUTION

Regulated Investment

Companies and Real Estate

Investment Trusts

For regulated investment companies and

real estate investment trusts, the following

amounts are limited to a percentage of the

amounts otherwise determined.

● The qualified rehabilitation

expenditures on lines 1b and 1c.

● The basis of the qualifying investment in

gasification project property for line 5.

● The $25,000 amount used to figure the

tax limitation on line 14.

g

Part I. Current Year 

Lines 1a through 1e. Reha

Credit

You are allowed a credit for 

rehabilitation expenditures m

qualified rehabilitated buildin

reduce your depreciable bas

amount of the credit.

● The basis for energy property for lines

3c and 3f and the kilowatt capacity for

lines 3d and 3g, respectively.

● The basis of the qualifying investment

in advanced coal project property for

lines 4a and 4b.

● The basis of the qualifying investment in

a gasification project property for line 5.

● The basis of energy property for lines

2, 3a, 3b, 3c, and 3f.

● The basis of the qualifying investment

in advanced coal project property for

lines 4a and 4b.

Recapture of Credit

You may have to refigure the investment

credit and recapture all or a portion of it if:

● You dispose of investment credit

property before the end of 5 full years

after the property was placed in service

(recapture period);

● You change the use of the property

before the end of the recapture period

so that it no longer qualifies as

investment credit property;

● The business use of the property

decreases before the end of the

recapture period so that it no longer

qualifies (in whole or in part) as

investment credit property;

● Any building to which section 47(d)

applies will no longer be a qualified

rehabilitated building when placed in

service;

q

financing for any property has increased

or decreased, then the credit base for

the property changes accordingly. The

changes may result in an increased

credit or a recapture of the credit in the

year of the change. See sections 49 and

465 for details.

The credit for purposes of l

10% of the expenditures for a

rehabilitated building other tha

historic structure. The credit fo

of line 1c is 20% of the expen

certified historic structure. The 

Opportunity Zone Act of 2005 

the rehabilitation credit by sub

13% for 10% and 26% for 20

respect to qualified expenditu

incurred after August 27, 2005

January 1, 2009, on qualified 

located in the Gulf Opportunit

Zone). For the definition of the 

see section 1400M and Pub. 4

Information for Taxpayers Affe

Hurricanes Katrina, Rita, and W

If you have a credit associat

property located in the GO Zo

combination of (a) and propert

located in the GO Zone, do th

Do not enter the amount of qu

expenditures and do not alter 

percentages in the captions to 

line 1b or 1c. Instead, attach a 

the amount(s) of qualified expe

percentage(s) showing your co

Enter the totals in the applicab

space on line 1b or 1c on the 
Enter the date of the final certification

of completed work received from the

Secretary of the Interior on line 1c(2). If

the final certification has not been

received by the time the tax return is

filed for a year in which the credit is

claimed, attach a copy of the first page

of NPS Form 10-168a, Historic

Preservation Certification Application

(Part 2—Description of Rehabilitation),

with an indication that it was received by

the Department of the Interior or the

State Historic Preservation Officer,

together with proof that the building is a

certified historic structure (or that such

status has been requested). After the

final certification of completed work has

been received, file Form 3468 with the

first income tax return filed after receipt

of the certification and enter the

assigned NPS project number and the

date of the final certification of

completed work on the appropriate lines

on the form. Also attach an explanation,

and indicate the amount of credit

claimed in prior years.

Lines 2 and 3a through 3

Credit

To qualify, energy property 

constructed, reconstructed, o

by the taxpayer. If acquired b

taxpayer, the original use of 

property must begin with the 

The property must meet the

performance and quality stan

any, that have been prescrib

regulations and are in effect 

the property is acquired. Ene

property does not include an

that is public utility property 

by section 46(f)(5) (as in effec

November 4, 1990).

disallowed for any tax year in 

was claimed, and you must f

amended return if necessary

Regulations section 1.48-12(

details.

If energy property is financed 

in part by subsidized energy 

by tax-exempt private activit

amount that you can claim a

the basis that would otherwis

allowed multiplied by a fracti

reduced by a second fraction

numerator of which is that po

basis allocable to such finan

proceeds, and the denomina

is the basis of the property. 

example, if the basis of the p

$100,000 and the portion allo

such financing or proceeds i

the fraction of the basis that 

claim the credit on is 4⁄5 (that 

$20,000/$100,000). Subsidize

financing means financing pr

under a federal, state, or loc

a principal purpose of which 

provide subsidized financing 

designed to conserve or prod

energy.

You must reduce the depre

basis by 50% of the energy 

determined.

You also must reduce the 

energy property by any amo

attributable to qualified rehab

expenditures.

Line 2

Enter the basis of any prope

solar or geothermal energy p

service during the tax year a

January 1, 2006.

For purposes of line 2, sol

property is equipment that u

energy to:

● Generate electricity,

3. The building must have been placed

in service before the beginning of

rehabilitation. This requirement is met if

the building was placed in service by

any person at any time before the

rehabilitation began.

4. For a building other than a certified

historic structure (a) at least 75% of the

external walls must be retained with

50% or more kept in place as external

walls, and (b) at least 75% of the

existing internal structural framework of

the building must be retained in place.

To be qualified rehabilitation

expenditures, your expenditures must

meet all six of the following

requirements.

1. The expenditures must be for 

(a) nonresidential rental property,

(b) residential rental property (but only if

a certified historic structure—see

Regulations section 1.48-1(h)), or (c) real

property that has a class life of more

than 12 years.

2. The expenditures must be incurred

in connection with the rehabilitation of a

qualified rehabilitated building.

3. The expenditures must be

capitalized and depreciated using the

straight line method.

4. The expenditures cannot include the

costs of acquiring or enlarging any

building.

5. If the expenditures are in connection

with the rehabilitation of a certified

historic structure or a building in a

registered historic district, the

rehabilitation must be certified by the

Secretary of the Interior as being

consistent with the historic character of

the property or district in which the

property is located. This requirement

does not apply to a building in a

registered historic district if (a) the

building is not a certified historic

structure, (b) the Secretary of the Interior

certifies that the building is not of historic

significance to the district, and (c) if the

6. The expenditures cannot include

any costs allocable to the part of the

property that is (or may reasonably

expect to be) tax-exempt use property

(as defined in section 168(h)).

If you are claiming a credit for a

certified historic structure on line 1c,

enter the assigned NPS project number

on line 1c(1). If the qualified rehabilitation

expenditures are from an S corporation,

partnership, estate, or trust, enter on line

1c(1) the employer identification number

of the pass-through entity instead of the

assigned NPS project number, and skip

lines 1c(2) and 1d and the instructions

below.

For credit purposes, the expenditures

are generally taken into account for the

tax year in which the qualified

rehabilitated building is placed in service.

However, with certain exceptions, you

may elect to take the expenditures into

account for the tax year in which they

were paid (or, for a self-rehabilitated

building, when capitalized) if (a) the

normal rehabilitation period for the

building is at least 2 years, and (b) it is

reasonable to expect that the building

will be a qualified rehabilitated building

when placed in service. For details, see

section 47(d). To make this election,

check the box on line 1a.

g p

that ends with or within your tax year are

more than the greater of $5,000 or your

adjusted basis in the building and its

structural components. Figure adjusted

basis on the first day of the 24-month

period or the first day of your holding

period, whichever is later. If you are

rehabilitating the building in phases

under a written architectural plan and

specifications that were completed

before the rehabilitation began,

substitute “60-month period” for

“24-month period.”

q

began.

You must retain a copy of the final

certification of completed work as long

as its contents may be needed for the
Line 4a.

Enter the basis of any qualifying

investment in integrated gasification

combined cycle property placed in

service after August 8, 2005. Eligible

property is any property which is part of

a qualifying advanced coal project using

an integrated gasification combined

cycle and is necessary for the

gasification of coal, including any coal

handling and gas separation equipment.

A qualifying advanced coal project is a

project:

● Using advanced coal-based generation

technology (as defined in section 48A(f)),

and

● Part of a certified advanced coal

project program (as defined in sections

48A(d)(2) and 48A(e)).

Integrated gasification combined cycle

is an electric generation unit which

produces electricity by converting coal

to synthesis gas, which in turn is used to

fuel a combined-cycle plant to produce

electricity from both a combustion

turbine (including a combustion

turbine/fuel cell hybrid) and a steam

turbine.

Line 4b.

Enter the basis of any qualifying

investment, other than in line 4a, in an

advanced coal project property service

after August 8, 2005. Eligible property is

any property which is part of a qualifying

advanced coal project (defined above)

not using an integrated gasification

combined cycle.

Line 5.

Enter the basis of the qualified

investment in qualifying gasification

project property placed in service after

August 8, 2005. For the purposes of this

credit, eligible property includes any

property that is part of a qualifying

gasification project and necessary for

the gasification technology of such

project. A qualifying gasification project

is any project that:

A qualifying gasification pr

is not allowed for any qualifie

investment for which a qualif

advanced coal project credit 

● Employs gasification technology (as

defined in section 48B(c)(2)),

certified under section 48B(d

Who must file Form 3800. Y

Form 3800 if you have:

● An investment credit from 

activity,

C corporations that are req

Form 4626, Alternative Minim

Corporations, may also use S

of Form 3800 to determine if 

entitled to an additional gene

credit for any regular investm

carryforward to 2005 for prop

in service before January 1, 

section 38(c)(2) (as in effect o

November 4, 1990).

Part II. Allowable Cre

The credit allowed for the cu

may be limited based on you

liability. Use Part II to figure t

allowable credit unless you m

Form 3800, General Business 

● More than one credit includ

general business credit (othe

credit from Form 8844, Form 

Section B of Form 8835), or

● A carryback or carryforwar

those credits.

See the instructions for Fo

find out which credits are inc

general business credit.

Line 11e. Other Specified 

Include on line 11e any amou

on:

Line 6. Credit From Coo

Section 1381(a) cooperative

organizations may claim the 

credit. If the cooperative can

of the credit because of the 

limit, the unused credit must 

allocated to the patrons of th

cooperative. The recapture p

section 50 apply as if the co

had kept the credit and not a

Patrons should enter their un

investment credit from coope

● Form 8834, Qualified Elect

Credit, line 20;

● Form 8910, Alternative Mo

Credit, line 18; and

● Form 8911, Alternative Fue

Refueling Property Credit, lin

For purposes of line 3b, solar energy

property includes solar energy property

as defined in the line 2 instructions and

equipment which uses solar energy to

illuminate the inside of a structure using

fiber-optic distributed sunlight.

Line 3c.

Enter the basis of any qualified fuel cell

property placed in service after

December 31, 2005. Qualified fuel cell

property is a fuel cell power plant that

generates at least 0.5 kilowatt of

electricity using an electrochemical

process and has electricity-only

generation efficiency greater than 30

percent. See section 48(c)(1) for further

details.

Line 3f.

Enter the basis of any qualified

microturbine property placed in service

after December 31, 2005. Qualified

microturbine property is a stationary

microturbine power plant which

generates less than 2,000 kilowatts and

has an electricity-only generation

efficiency of not less than 26 percent at

International Standard Organization

conditions. See section 48(c)(2) for

further details.

Lines 4a through 4c and Line 5.

Qualifying advanced coal and

gasification project credit

The basis of property may have to be

reduced for certain financing received

under rules similar to section 48(a)(4) and

described in the first paragraph under

Lines 2 and 3a through 3i. Energy Credit.

Line 3b.

Enter the basis of any solar energy

property placed in service after

December 31, 2005.

pjgppy 

property for which depreciation or

amortization is available and the

construction, reconstruction, or erection

of which is completed by the taxpayer,

or which is acquired by the taxpayer if

the original use of such property

commences with the taxpayer.

Geothermal energy property is

equipment that uses geothermal energy

to produce, distribute, or use energy

derived from a geothermal deposit

(within the meaning of section 613(e)(2)).

For electricity produced by geothermal

power, equipment qualifies only up to,

but not including, the electrical

transmission stage.

Line 3a.

Enter the basis of any property using

geothermal energy placed in service

after December 31, 2005. See line 2

instructions for the definition of

geothermal energy property.
Printed on Recycled Paper

● Corporations: Form 4626, line 12.

● Estates and trusts: Form 1041,

Schedule I, line 54.

Line 18. Current Year Credit

If you cannot use all of the credit

because of the tax liability limit (line 17

is smaller than line 7), carry the unused

credit back 1 year and then forward up

to 20 years. See the instructions for

Form 3800 for details.

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 time needed to comple

this form will vary depending 

individual circumstances. The 

burden for individual taxpaye

form is approved under OMB 

number 1545-0074 and is inc

the estimates shown in the in

for their individual income tax 

estimated burden for all othe

who file this form is shown b

If you have comments con

accuracy of these time estim

suggestions for making this f

simpler, we would be happy 

from you. See the instruction

return with which this form is 

Recordkeeping 

Learning about the

law or the form 

Preparing and sending

the form to the IRS 

Line 15. Tentative Minimum Tax

Although you may not owe AMT, you

generally must still compute the tentative

minimum tax (TMT) to figure your credit.

A member of a controlled group must

use only its apportioned share of the

$25,000.

A regulated investment company or a

real estate investment trust should see

Regulated Investment Companies and

Real Estate Investment Trusts on page 3.

For estates and trusts, the $25,000

amount is reduced by the same

proportionate share of income that was

allocated to the beneficiaries.

general business credits (and no

carryforwards or carrybacks to the

current year), then the other may use the

entire $25,000.

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

y

information are confidential, 

by section 6103.

For a small corporation exempt from

the AMT under section 55(e), enter zero.

Otherwise, complete and attach the