Form 8835

Department of the Treasury 

Internal Revenue Service

Renewable Electricity, Refined Coal, 

and Indian Coal Production Credit

© Attach to your tax return.

OMB No. 1545-1362

2009

Attachment 

Sequence No. 95

Name(s) shown on return Identifying number

Part I Electricity Produced at Qualified Facilities Placed in Service Prior to October 23, 2004

1 Kilowatt-hours produced and sold (see instructions) . . . 3 0.021 1

2 Phaseout adjustment (see instructions) . . . . . . . $ 3 2

3 Credit before reduction. Subtract line 2 from line 1 . . . . . . . . . . . . . . . 3

Reduction for government grants, subsidized financing, and other credits:

4 Total of government grants, proceeds of tax-exempt government obligations, subsidized energy financing, 

and any federal tax credits allowed for the project for this and all prior tax years (see instructions) . . . 4

5 Total of additions to the capital account for the project for this and all prior tax years . . . . 5

 6 Divide line 4 by line 5. Show as a decimal carried to at least 4 places . . . . . . . . . 6 .

7 Multiply line 3 by line 6 . . . . . . . . . . . . . . . . . . . . . . . . 7

8 Subtract line 7 from line 3 . . . . . . . . . . . . . . . . . . . . . . . 8

9 Part I renewable electricity production credit from partnerships, S corporations, cooperatives, 

estates, and trusts . . . . . . . . . . . . . . . . . . . . . . . . . . 9

10 Add lines 8 and 9. Cooperatives, estates, and trusts, go to line 11; partnerships and S corporations, 

report this amount on Schedule K; all others, report this amount on Form 3800, line 1f . . . . 10

11 Amount allocated to patrons of the cooperative or beneficiaries of the estate or trust (see instructions) 11

12 Cooperatives, estates, and trusts. Subtract line 11 from line 10. Report this amount on Form 3800, line 1f 12

Part II Electricity and Refined Coal Produced at Qualified Facilities Placed in Service After 

October 22, 2004 (After October 2, 2008, for Electricity Produced From Marine and Hydrokinetic 

Renewables), and Indian Coal Produced at Facilities Placed in Service After August 8, 2005

Electricity produced at qualified facilities using wind, closed-loop biomass, geothermal, 

and solar

13 Kilowatt-hours produced and sold (see instructions) . . . 3 0.021 13

Electricity produced at qualified facilities from open-loop biomass, small irrigation power, 

landfill gas, trash, hydropower, and electricity produced from marine and hydrokinetic 

renewables

14 Kilowatt-hours produced and sold (see instructions) . . . 3 0.011 14

15 Add lines 13 and 14 . . . . . . . . . . . . . . . . . . . . . . . . . 15

16 Phaseout adjustment (see instructions) . . . . . . . $ 3 16

17 Subtract line 16 from line 15 . . . . . . . . . . . . . . . . . . . . . . 17

Refined coal produced at a qualified refined coal production facility

18 Tons produced and sold (see instructions) . . . . . . 3 $6.20 18

19 Phaseout adjustment (see instructions) . . . . . . . $ 3 19

20 Subtract line 19 from line 18 . . . . . . . . . . . . . . . . . . . . . . 20

Steel industry fuel produced at a qualified refined coal production facility

21 Barrel-of-oil equivalents produced and sold (see instructions) 3 $2.00 21

Indian coal produced at a qualified Indian coal production facility

22 Tons produced and sold (see instructions) . . . . . . 3 $1.625 22

23 Credit before reduction. Add lines 17, 20, 21, and 22 . . . . . . . . . . . . . . 23

Reduction for government grants, subsidized financing, and other credits:

24 Total of government grants, proceeds of tax-exempt government obligations, subsidized energy financing, 

and any federal tax credits allowed for the project for this and all prior tax years (see instructions) . . . 24

25 Total of additions to the capital account for the project for this and all prior tax years . . . . 25

26 Divide line 24 by line 25. Show as a decimal carried to at least 4 places . . . . . . . . 26 .

27 Multiply line 23 by the smaller of 1/2 or line 26 . . . . . . . . . . . . . . . . . 27

28 Subtract line 27 from line 23 . . . . . . . . . . . . . . . . . . . . . . 28

29 Part II renewable electricity, refined coal, and Indian coal production credit from partnerships, 

S corporations, cooperatives, estates, and trusts . . . . . . . . . . . . . . . . 29

30 Add lines 28 and 29. Partnerships and S corporations, report this amount on Schedule K; all 

others continue to line 31 . . . . . . . . . . . . . . . . . . . . . . . 30

31 Renewable electricity, refined coal, and Indian coal production credit included on line 30 from

passive activities (see instructions) . . . . . . . . . . . . . . . . . . . . 31

32 Subtract line 31 from line 30 . . . . . . . . . . . . . . . . . . . . . . 32

For Paperwork Reduction Act Notice, see instructions. Cat. No. 14954R Form 8835 (2009)
Form 8835 (2009) Page 2

33 Renewable electricity, refined coal, and Indian coal production credit allowed for 2009 from a 

passive activity (see instructions) . . . . . . . . . . . . . . . . . . . . . 33

34 Carryforward of renewable electricity, refined coal, and Indian coal production credit to 2009 . 34

35 Carryback of renewable electricity, refined coal, and Indian coal production credit from 2010 

(see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . 35

36 Add lines 32 through 35. Cooperatives, estates, and trusts, go to line 37; All others: For 

electricity or refined coal produced during the 4-year period beginning on the date the facility 

was placed in service, report the applicable part of this amount on Form 3800, line 29e; for 

Indian coal produced before 2010 or during the 4-year period beginning on the date the facility 

was placed in service, report the applicable part of this amount on Form 3800, line 29e; for all 

other production of electricity, refined coal, or Indian coal, report the applicable part of this

amount on Form 3800, line 1f . . . . . . . . . . . . . . . . . . . . . . 36

37 Amount allocated to patrons of the cooperative or beneficiaries of the estate or trust (see instructions) 37

38 Cooperatives, estates, and trusts. Subtract line 37 from line 36. For electricity or refined coal 

produced during the 4-year period beginning on the date the facility was placed in service, report the 

applicable part of this amount on Form 3800, line 29e; for Indian coal produced before 2010 or during 

the 4-year period beginning on the date the facility was placed in service, report the applicable part of 

this amount on Form 3800, line 29e; for all other production of electricity, refined coal, or Indian coal, 

report the applicable part of this amount on Form 3800, line 1f . . . . . . . . . . . . . 38

General Instructions

Section references are to the Internal 

Revenue Code.

Purpose of Form

Use Form 8835 to claim the renewable 

electricity, refined coal, and Indian coal 

production credit. The credit is allowed only for 

the sale of electricity, refined coal, or Indian coal 

produced in the United States or U.S. 

possessions from qualified energy resources at 

a qualified facility (see Definitions below).

Generally, if you are a taxpayer that is not a 

partnership or S corporation, and your only 

source of this credit is from a partnership, S 

corporation, estate, trust, or cooperative, you 

are not required to complete Part I of this form. 

Instead, you can report this credit directly on 

line 1f of Form 3800. The following exceptions 

apply.

● You are an estate or trust and the source 

credit can be allocated to beneficiaries. For 

more details, see the Instructions for Form 

1041, Schedule K-1, box 13.

● You are a cooperative and the source credit 

can or must be allocated to patrons. For more 

details, see the Instructions for Form 1120-C, 

Schedule J, line 5c.

Election To Treat a Qualified Facility 

as Energy Property

Section 48(a)(5) provides an irrevocable election 

to treat qualified property (described in section 

48(a)(5)(D)) that is part of a qualified investment 

credit facility (described in section 48(a)(5)(C)) as 

energy property eligible for the investment credit 

(reported on Form 3468, Investment Credit) in 

lieu of a production credit reportable on this 

form. This election applies to a facility placed in 

service after 12/31/08, and before 1/1/14, 

(before 1/1/13 for a wind facility). See Notice 

2009-52 and Form 3468, for information on 

making the election. Notice 2009-52 is available 

at www.irs.gov/irb/2009-25_IRB/ar09.html.

Coordination with Department of 

Treasury Grants

If a grant is paid under the American 

Recovery and Reinvestment Act of 2009 (the 

Act), section 1603, for placing into service 

specified energy property (described in Act 

section 1603(d)), no production credit under

section 45, or investment credit under section 

48, is allowed for the property for the current 

tax year or any subsequent tax year. See 

section 48(d) for more information.

How To Figure the Credit

Generally, the credit for electricity, refined 

coal, and Indian coal produced from qualified 

energy resources at a qualified facility during 

the credit period (see Definitions below) is:

● 1.5 cents per kilowatt-hour (kWh) for the sale 

of electricity produced by the taxpayer;

● 1/2 of 1.5 cents for open-loop biomass, small 

irrigation, landfill gas, trash, hydropower, and 

marine and hydrokinetic renewable facilities;

● $4.375 per ton for the sale of refined coal 

produced, see section 45(e)(8)(A);

● $2 per barrel-of-oil equivalent for the sale of 

steel industry fuel, see section 45(e)(8)(A); or

● $1.50 per ton for the sale of Indian coal 

produced.

The credit for electricity produced is 

proportionately phased out over a 3-cent 

range when the reference price exceeds the 

8-cent threshold price. The refined coal credit 

is proportionately phased out over an $8.75 

range when the reference price of fuel used 

as feedstock exceeds 1.7 times the 2002 

reference price. The 1.5-cent credit rate, the 

8-cent threshold price, the $4.375 refined coal 

rate, the reference price of fuel used as a 

feedstock, the $2 steel industry fuel rate, and 

the $1.50 Indian coal rate are adjusted for 

inflation. The reference price and the inflation 

adjustment factor (IAF) for each calendar year 

are published during the year in the Federal 

Register. If the reference price is less than the 

threshold price (adjusted by the IAF), there is 

no reduction. For electricity produced, if the 

reference price is more than 3 cents over the 

adjusted threshold price, there is no credit; if 

the reference price is more than the threshold 

price, but not more than 3 cents over the 

adjusted threshold price, there is a phaseout 

adjustment on line 2 or line 16. For refined 

coal produced, if the reference price is more 

than $8.75 over the adjusted threshold price, 

there is no credit; if the reference price is 

more than the threshold price, but not more 

than $8.75 over the adjusted threshold price, 

there is a phaseout adjustment on line 19.

Note. For calendar year 2009, the effective

credit rate for electricity, refined coal, and

Indian coal produced and sold is,

respectively, 2.1 cents per kWh, $6.20 per

ton, and $1.625 per ton; there is no phaseout

adjustment.

Example. If the reference price of 

electricity is 10.0¢ and the adjusted threshold 

price is 9.0¢, reduce the credit by 1/3 ((10.0¢ 

– 9.0¢) 4 3¢ = .3333). Enter the line 1 credit in 

the first entry space on line 2, .3333 in the 

second entry space, and multiply to figure the 

reduction.

Definitions

Resources means wind, closed-loop

biomass, poultry waste, open-loop biomass,

geothermal energy, solar energy, small

irrigation power, municipal solid waste,

hydropower production, marine and

hydrokinetic renewables, refined coal, and

Indian coal.

Closed-loop biomass is any organic 

material from a plant that is planted 

exclusively for use at a qualified facility to 

produce electricity.

Poultry waste is poultry manure and litter, 

including wood shavings, straw, rice hulls, 

and other bedding material for the disposition 

of manure.

Open-loop biomass is solid, 

nonhazardous, cellulosic waste material; 

lignin material; or agricultural livestock waste 

nutrients as defined in section 45(c)(3). See 

Notice 2008-60, 2008-30 I.R.B. 178, for rules 

related to open-loop biomass, including an 

expanded definition of a qualified facility and 

rules related to sales.

Geothermal energy is energy derived from 

a geothermal deposit as defined by section 

613(e)(2).

Small irrigation power is power generated 

without any dam or impoundment of water. 

See section 45(c)(5).

Municipal solid waste is solid waste as 

defined under paragraph 27 of 42 U.S.C. 

6903.

Refined coal is (1) a liquid, gaseous, or 

solid fuel produced from coal or high carbon

Form 8835 (2009)
Form 8835 (2009) Page 3

fly ash meeting the requirements of section 45

(c)(7), or (2) steel industry fuel (defined below).

Steel industry fuel is a fuel that is 

produced through a process of liquifying coal 

waste sludge (as defined by section 45(c)(7)

(C)(ii)) and distributing it on coal and is used 

as a feedstock for the manufacture of coke. 

Hydropower production means the 

incremental hydropower production for the 

tax year from any hydroelectric dam placed in 

service on or before 8/8/2005 and the 

hydropower production from any 

nonhydroelectric dam described in section 45

(c)(8)(C).

Marine and hydrokinetic renewable 

energy means energy derived from waves, 

tides, and currents in oceans, estuaries, and 

tidal areas; free flowing water in rivers, lakes, 

and streams; free flowing water in an irrigation 

system, canal, or other man-made channel, 

including projects that utilize nonmechanical 

structures to accelerate the flow of water for 

electric power production purposes; or 

differentials in ocean temperature (ocean 

thermal energy conversion). See section 45(c)

(10)(B) for exceptions.

Indian coal means coal which is produced 

from coal reserves which on 6/14/05 were 

owned by an Indian tribe or held in trust by 

the United States for the benefit of an Indian 

tribe or its members.

Qualified facility is any of the following 

facilities owned by the taxpayer and used to 

produce electricity or, in the case of coal 

production facilities, refined and Indian coal. 

The facilities are shown by form section.

Part I

● Poultry waste facility placed in service after 

12/31/99 and before 1/1/05.

● Wind facility placed in service after 12/31/93 

and before 10/23/04.

● Closed-loop biomass facility placed in service 

after 12/31/92 and before 10/23/04.

Part II

● Wind facility placed in service after 10/22/04 

and before 1/1/13. This does not include any 

facility for which any qualified small wind 

energy property expenditure (as defined in 

section 25D(d)(4)) is used in determining the 

residential energy efficient property credit.

● Closed-loop biomass facility placed in service 

after 10/22/04 and before 1/1/14.

● Closed-loop biomass facility modified to 

co-fire with coal or other biomass (or both), 

placed in service before 1/1/14. See section 45

(d)(2).

● Closed-loop biomass facility that is a new unit 

placed in service after 10/3/08 in connection 

with a facility described in section 45(d)(2)(A)(i), 

but only to the extent of the increased amount 

of electricity produced at the facility by reason 

of the new unit.

● Open-loop biomass facility using cellulosic 

waste placed in service before 1/1/14.

● Open-loop biomass facility using agricultural 

livestock waste placed in service after 10/22/04 

and before 1/1/14, and the nameplate capacity 

rating is not less than 150 kilowatts.

● Open-loop biomass facility that is a new unit 

placed in service after 10/3/08 in connection 

with a facility described in section 45(d)(3)(A), 

but only to the extent of the increased amount 

of electricity produced at the facility by reason 

of the new unit.

● Geothermal energy facility placed in service 

after 10/22/04 and before 1/1/14.

● Solar energy facility placed in service after 

10/22/04 and before 1/1/06.

● Small irrigation power facility placed in service 

after 10/22/04 and before 10/3/08.

● Landfill gas or trash facility using municipal 

solid waste placed in service after 10/22/04 and 

before 1/1/14.

● A refined coal production facility originally 

placed in service after 10/22/04 and before 

1/1/10, or a facility producing steel industry fuel 

(or any modification to such a facility) placed in 

service before 1/1/10.

● Hydropower facility producing incremental 

hydroelectric production attributable to 

efficiency improvements or additions to 

capacity described in section 45(c)(8)(B) placed 

in service after 8/8/05 and before 1/1/14, and 

any other facility producing qualified 

hydroelectric production described in section 

45(c)(8) placed in service after 8/8/05 and 

before 1/1/14.

● Indian coal production facility placed in 

service before 1/1/09.

● Marine and hydrokinetic renewable energy 

facility placed in service after 10/2/08 and 

before 1/1/14.

A qualified facility does not include a 

refined coal production facility or landfill gas 

facility using municipal solid waste to produce 

electricity, if the production from that facility is 

allowed as a credit under section 45K. This 

does not apply to a refined coal facility 

producing steel industry fuel.

Credit period is:

● 10 years for a wind, poultry waste, 

closed-loop biomass (not modified for co-fire 

purposes), or refined coal production facility, 

beginning on the date the facility was placed in 

service.

● 10 years for a closed-loop biomass facility 

modified to co-fire with coal, other biomass, or 

both, beginning on the date the facility was 

placed in service, but not earlier than 10/22/04.

● 10 years for a hydropower facility, beginning 

on the date the efficiency improvements or 

additions to capacity are placed in service.

● 7 years for an Indian coal production facility, 

beginning on the date the facility was placed in 

service, but not before 1/1/06.

● 5 years for an open-loop biomass facility 

using agricultural livestock waste, geothermal, 

solar energy, small irrigation power, landfill gas, 

or trash facility, beginning on the date the 

facility was placed in service, if placed in 

service during the period after 10/22/04 and 

before 8/9/05. The credit period is 10 years if 

placed in service after 8/8/05.

● 5 years for an open-loop biomass facility 

using cellulosic waste, beginning on the date 

the facility was placed in service, but not earlier 

than 1/1/05.

● The period beginning on the later of the date 

the facility was placed in service, the date the 

modifications (described in section 

45(e)(8)(D)(iii)) were placed in service, or 

10/1/08, and ending on the later of 12/31/09, or 

1 year after the date the facility or modifications 

(described in section 45(e)(8)(D)(iii)) were placed 

in service for steel industry fuel.

United States and U.S. possessions include

the seabed and subsoil of those submarine

areas that are adjacent to the territorial waters 

over which the United States has exclusive 

rights according to international law.

Who Can Take the Credit

Generally, the owner of the facility is allowed 

the credit. In the case of closed-loop biomass 

facilities modified to co-fire with coal, other 

biomass, or both, and open-loop biomass 

facilities, if the owner is not the producer of 

the electricity, the lessee or the operator of 

the facility is eligible for the credit.

Specific Instructions for 

Part I and Part II

Figure any renewable electricity, refined coal, 

and Indian coal production credit from your 

trade or business on lines 1 through 8 or lines 

13 through 28. Skip lines 1 through 8 or lines 

13 through 28 if you are only claiming a credit 

that was allocated to you from an S 

corporation, partnership, cooperative, estate, 

or trust.

Fiscal year taxpayers. If you have sales in

2009 and 2010 and the credit rate on lines 1,

13, 14, 18, 21, or 22 (or the phaseout

adjustment on lines 2, 16, or 19) is different 

for 2010, make separate computations for 

each line. Use the respective sales, credit 

rate, and phaseout adjustment for each 

calendar year. Enter the total of the two 

computations on the credit rate line(s) (lines 1, 

13, 14, 18, 21, or 22) or the phaseout 

adjustment line(s) (lines 2, 16, or 19). Attach 

the computations to Form 8835 and write 

“FY” in the margin.

Line 1 and Line 13

Enter the kilowatt-hours of electricity 

produced at qualified facilities and multiply by 

$.021. Fiscal year filers with 2010 sales may 

have to refigure lines 1 and 13 as explained 

under Fiscal year taxpayers above.

If you claimed the credit for a closed-loop 

biomass facility modified to co-fire with coal, 

other biomass, or both, after 10/21/04, and 

before tax year 2007, you should file an 

amended return to refigure your credit. Use 

Form 8835 for the applicable tax year to 

refigure your credit. The additional limitation, 

based on the thermal content of closed-loop 

biomass used in the facility and the thermal 

content of all fuels used in the facility, that 

applied to these facilities no longer applies. 

As a result, the credit related to these facilities 

is figured on line 13.

Line 14

Enter the kilowatt-hours of electricity 

produced and sold at qualified facilities and 

multiply by $.011. Fiscal filers with 2010 sales 

must figure line 14 as explained under Fiscal

year taxpayers above.

Line 2 and Line 16

Calendar year filers enter zero on line 2 or line 

16. Fiscal year filers with sales in 2010 also 

enter zero if the published 2010 reference 

price is equal to or less than the 2010 

adjusted threshold price. See How To Figure

the Credit on page 2 to figure the adjustment.

Line 18

Enter the tons of refined coal (other than steel 

industry fuel) produced and sold during 2009 

from a qualified refined coal production facility 
Form 8835 (2009) Page 4

and multiply by $6.20. Fiscal filers with 2010 

sales must figure line 18 as explained under 

Fiscal year taxpayers on page 3.

Line 19

Calendar year filers enter zero on line 19. 

Fiscal year filers with sales in 2010 also enter 

zero if the published 2010 reference price is 

equal to or less than 1.7 times the 2002 

reference price. See How To Figure the Credit

on page 2 to figure the adjustment.

Line 21

Enter the barrel-of-oil equivalents of steel 

industry fuel produced and sold from a 

qualified refined coal facility and multiply by 

$2.00.

Line 22

Enter the tons of Indian coal produced and 

sold from a qualified Indian coal facility and 

multiply by $1.625.

Line 4 and Line 24

Enter the sum, for this and all prior tax years, 

of:

● Grants provided by the United States, a state, 

or political subdivision of a state for the project;

● Proceeds of a tax-exempt issue of state or 

local government obligations used to provide 

financing for the project;

● Total of subsidized energy financing provided 

directly or indirectly under a federal, state, or 

local program provided for the project; and

● The amount of any federal tax credit allowable 

for any property that is part of the project.

Line 10 and Line 30

Partnerships that own and produce electricity 

from qualified wind facilities should see Rev. 

Proc. 2007-65, 2007-45 I.R.B. 967, for 

information on how to allocate the credit. Rev. 

Proc. 2007-65 is available at www.irs.gov/

irb/2007-45_IRB/ar18.html.

Line 31

Enter the amount included on line 30 that is 

from a passive activity. Generally, a passive 

activity is a trade or business in which you did 

not materially participate. Rental activities are 

generally considered passive activities, 

whether or not you materially participate. For 

details, see Form 8582-CR, Passive Activity 

Credit Limitations (for individuals, trusts, and 

estates), or Form 8810, Corporate Passive 

Activity Loss and Credit Limitations (for 

corporations).

Line 33

Enter the passive activity credit allowed for 

the 2009 renewable electricity, refined coal, 

and Indian coal production credit from Form 

8582-CR or Form 8810.

Line 35

Use only if you amend your 2009 return to 

carry back an unused renewable electricity, 

refined coal, and Indian coal production credit 

from 2010.

Line 11 and Line 37

Cooperative election to allocate credit to 

patrons. A cooperative described in section

1381(a) can elect to allocate any part of the

renewable electricity, refined coal, and Indian

coal production credit among the patrons of

the cooperative. The credit is allocated among 

the patrons eligible to share in patronage 

dividends on the basis of the quantity or value 

of business done with or for such patrons for 

the tax year.

The cooperative is deemed to have made 

the election by completing line 11 or line 37, 

as applicable. However, the election is not 

effective unless (a) made on a timely filed 

return (including extensions) and (b) the 

organization designates the apportionment in 

a written notice mailed to its patrons during 

the payment period described in section 1382

(d).

If you timely file your return without making 

an election, you can still make the election by 

filing an amended return within 6 months of 

the due date of the return (excluding 

extensions). Enter “Filed pursuant to section 

301.9100-2” on the amended return.

Once made, the election cannot be 

revoked.

Estates and trusts. Allocate the credit on 

line 10 or line 36 between the estate or trust 

and the beneficiaries in the same proportion 

as income was allocated and enter the

beneficiaries’ share on line 11 or line 37.

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.

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.

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 . . . . 11 hr., 57 min.

Learning about the law 

or the form . . . . . . . 1 hr., 5 min.

Preparing, copying, 

assembling, and sending 

the form to the IRS . . . 1 hr., 19 min.

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.