Form

Department of the Treasury

Internal Revenue Service

Renewable Electricity Production Credit OMB No. 1545-1362

© Attach to your return.

Attachment

Sequence No. 95

Current Year Credit

Electricity produced by closed-loop biomass facility placed in service after 1992:

1 Kilowatt hours produced and sold in 1993

2 Phaseout adjustment (see instructions)

3 Credit for electricity produced by closed-loop biomass facility. Subtract line 2 from line 1

Electricity produced by wind facility placed in service after 1993:

4 Kilowatt hours produced and sold in 1994 (see instructions)

5 Phaseout adjustment (see instructions)

6 Credit for electricity produced by wind facility. Subtract line 5 from line 4

7 Total credit before reduction. Add lines 3 and 6

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

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

financing, and any other credits allowed for the project for this and all prior tax years

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

10 Divide line 8 by line 9. Show as a decimal carried out to 4 places

11 Multiply line 7 by line 10

12 Subtract line 11 from line 7

13 Renewable electricity

production credit(s)

from flow-through

entities:

If you are a— Then enter the credit(s) from—

a Shareholder Schedule K-1 (Form 1120S) lines 12d, 12e, or 13

b Partner Schedule K-1 (Form 1065) lines 13d, 13e, or 14

c Beneficiary Schedule K-1 (Form 1041) line 13

14 Current year credit. Add lines 12 and 13

Part I

Part II

0.015

3

3

3

Tax Liability Limitation (See Who Must File Form 3800 to see if you complete Part II or file Form 3800.)

15a Individuals. Enter amount from Form 1040, line 40

b Corporations. Enter amount from Form 1120, Schedule J, line 3 (or Form 1120-A, Part I, line 1) 

c Other filers. Enter regular tax before credits from your return

16 Credits that reduce regular tax before the renewable electricity production credit:

a Credit for child and dependent care expenses (Form 2441)

b Credit for the elderly or the disabled (Schedule R (Form 1040))

c Foreign tax credit (Form 1116 or Form 1118)

d Possessions tax credit (Form 5735)

e Mortgage interest credit (Form 8396)

f Credit for fuel from a nonconventional source

g Orphan drug credit (Form 6765)

h

Add lines 16a through 16h

17 Net regular tax. Subtract line 16i from line 15

18 Tentative minimum tax (see instructions):

a Individuals. Enter amount from Form 6251, line 20

b Corporations. Enter amount from Form 4626, line 15

c Estates and trusts. Enter amount from Form 1041, Schedule H, line 37

19 Net income tax:

a Individuals. Add line 17 above and line 22 of Form 6251 

b Corporations. Add line 17 above and line 17 of Form 4626

c Estates and trusts. Add line 17 above and line 39 of Form 1041, Schedule H

20 If line 17 is more than $25,000, enter 25% (.25) of the excess (see instructions)

21 Subtract line 18 or line 20, whichever is greater, from line 19. Enter the result. If less than zero, enter -0-

22 Renewable electricity production credit allowed for current year. Enter the smaller of line 14 or line 21.

This is your General Business Credit for 1992. Enter here and on Form 1040, line 44; Form 1120, Schedule

J, line 4e; Form 1120-A, Part I, line 2a; or on the appropriate line of other income tax returns

For Paperwork Reduction Act Notice, see instructions on page 2. Form 8835 (1992)

%

%

%

Cat. No. 14954R

Qualified electric vehicle credit (Form 8834)

i

8835

© For fiscal years beginning in 1992 and ending in 1993.

3

Name(s) as shown on return Identifying number

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16a

16b

16c

16d

16e

16f

16g

16h

16i

17

18

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%

$

$

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Form 8835 (1992) Page 2

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 complete and file this

form will vary depending on individual

circumstances. The estimated average time

is:

Recordkeeping 7 hr., 39 min.

Learning about the law

or the form 6 min.

Preparing and sending

the form to the IRS 14 min.

If you have comments concerning the

accuracy of these time estimates or

suggestions for making this form more

simple, we would be happy to hear from you.

You can write to both the IRS and the Office

of Management and Budget at the addresses

listed in the instructions of the tax return with

which this form is filed.

Section 1914 of the Energy Policy Act of

1992 revised section 38 and added new

section 45 to allow an income tax credit on

the sale of electricity produced in the United

States and U.S. possessions from qualified

energy resources (see Definitions below).

Form 8835 is used to figure the credit.

General Instructions

Section references are to the Internal

Revenue Code unless otherwise noted.

Purpose of Form

This form is to be used ONLY by fiscal year

taxpayers who:

The rate of the credit is 1.5 cents per kilowatt

hour on the sale of electricity produced by

the taxpayer from qualified energy resources

at a qualified facility during the 10-year period

beginning with the date the facility is originally

placed in service.

The credit is proportionately phased out

over a 3-cent range when the reference price

(see Definitions) exceeds the threshold price

(see next paragraph). The credit is completely

phased out when the reference price exceeds

the threshold price by 3 cents or more. See

Line 2 below for details.

Both the credit rate of 1.5 cents and the

threshold price of 8 cents are adjusted for

inflation. The reference price and the inflation

adjustment factor for the year are published

in the Federal Register by April 1 of the

calendar year.

The credit is also reduced for any

government grants, subsidized financing, and

other credits. See Line 8 below for details.

Who Must File Form 3800

The general business credit consists of

several credits, including the investment

(Form 3468), jobs (Form 5884), credit for

alcohol used as fuel (Form 6478), research

(Form 6765), low-income housing (Form

8586), enhanced oil recovery (Form 8830),

disabled access (Form 8826), and renewable

electricity production (Form 8835). If you have

more than one of these credits for this year, a

carryback or carryforward of any of these

credits, or a renewable electricity production

credit from a passive activity, you must also

file Form 3800, General Business Credit,

which is used instead of Part II of Form 8835,

to figure the tax liability limitation.

Definitions

Qualified energy resources means closed-loop

biomass and wind.

Closed-loop biomass means any organic

material from a plant that is planted

exclusively for use at a qualified facility to

produce electricity. It does not include any

waste materials such as the use of scrap

wood, manure, municipal or agricultural

waste, or standing timber.

Qualified facility means any taxpayer-owned

facility using closed-loop biomass to produce

electricity that is originally placed in service

after December 31, 1992, but before July 1,

1999. It also means any taxpayer-owned

facility using wind to produce electricity that

is originally placed in service after December

31, 1993, but before July 1, 1999.

Reference price means the annual average

contract price per kilowatt hour of electricity

generated from the same qualified energy

resource and sold in the previous year in the

United States as determined by the Secretary

of the Treasury.

United States and possessions of the

United States includes the seabed and

subsoil of those submarine areas that are

adjacent to the territorial waters over which

the United States has exclusive rights in

accordance with international law.

Specific Instructions

Part I

Complete lines 1 through 12 to figure any

renewable electricity production credit from

your trade or business. Skip lines 1 through

12 if you are claiming only a credit that was

allocated to you from an S corporation,

partnership, estate, or trust.

Line 1.—Enter the kilowatt hours (Kwh) of

electricity produced and sold after December

31, 1992, from a facility using closed-loop

biomass as the renewable resource.

Line 2.—Reduce the credit figured in line 1

by the percentage that the 1993 reference

price exceeds the threshold price divided by

3 cents.

Line 8.—Enter the sum, for this and all prior

tax years, of (1) grants provided by the United

States, a state, or political subdivision of a

state for the project; (2) proceeds of an issue

of state or local government obligations used

to provide financing for the project, the

interest of which is tax-exempt; (3) total of

subsidized energy financing provided directly

or indirectly under a Federal, state, or local

program provided for the project; and (4) the

amount of any other credit allowable for any

property that is part of the project.

Line 9.—Enter the total amount of additions

to the capital account for the project for this

and all prior tax years.

Line 14.—If you have a credit from a passive

activity, stop here and go to Form 3800.

S corporations and partnerships.—Prorate

the credit on line 14 to the shareholders or

partners. Attach Form 8835 to the S

corporation or partnership return, and show

on Schedule K-1 each shareholder’s or

partner’s credit.

Estates and trusts.—The credit on line 14 is

allocated between the estate or trust and the

beneficiaries in proportion to the income

allocated to each. On the dotted line to the

left of the amount on line 14, enter the estate

or trust’s share of the total credit. Label it

“1041 PORTION” and use this amount in Part

II (or Form 3800, if required) to figure the

credit to claim on Form 1041.

Part II

Line 18.—Enter the tentative minimum tax

(TMT) that was figured on the appropriate

alternative minimum tax (AMT) form or

schedule. Although you may not owe AMT,

you must still compute the TMT to figure your

credit.

Line 20.—See section 38(c)(2) for special

rules for married couples filing separate

returns, for controlled groups, and for estates

and trusts.

Line 22.—If you cannot use part of the credit

because of the tax liability limitations (line 22

is less than line 14), carry the excess to other

years. The excess credit attributable to

closed-loop biomass as a qualified energy

resource cannot be carried back to any tax

year ending before 1993 (before 1994

attributable to wind as a qualified energy

resource). See the separate Instructions for

Form 3800 for details.

Who Should File

An owner of a qualified facility using

closed-loop biomass is eligible for the credit

only if the facility is placed in service after

1992. A qualified facility using wind is eligible

only if it is placed in service after 1993.

How the Credit Is Figured

Lines 4, 5, and 6.—No credit is allowed for

the 1992 fiscal year for electricity produced

and sold from a facility that uses wind as the

renewable energy resource.

Lines 4, 5, and 6 apply to tax years

beginning after December 31, 1993. These

lines are shown with the entry spaces shaded

to give taxpayers advance information on the

portion of the credit that will be allowed for

electricity produced and sold from a qualified

facility using wind as the qualified energy

resource.

1. have a tax year that started in 1992 and

ended in 1993;

2. placed a qualified facility using

closed-loop biomass in service after

December 31, 1992; and

3. produced and sold electricity from the

facility to an unrelated party during their fiscal

year.

If the reference price is 8 cents or less,

there is no reduction. If the reference price is

11 cents or more, there is no credit. If the

reference price is more than 8 cents and less

then 11 cents, there is a credit reduction on

line 2.

For example, if the 1993 reference price is

9 cents, you must reduce the credit by 1/3 ((9

The 8-cents threshold price is adjusted for

inflation after this year. The reference price

for the year will be published by April 1 in the

Federal Register.

cents minus 8 cents) divided by 3 cents = 1/3

= .3333). In this example, you would enter the

credit figured in line 1 in the first entry space

on line 2, enter .3333 in the second entry

space, and complete line 2 to figure the

reduction.