Form 8827

Department of the Treasury 

Internal Revenue Service

Credit for Prior Year Minimum Tax—Corporations

▶ Attach to the corporation’s tax return.

▶ Information about Form 8827 and its instructions is at www.irs.gov/form8827.

OMB No. 1545-0123

2016

Name Employer identification number

1 Alternative minimum tax (AMT) for 2015. Enter the amount from line 14 of the 2015 Form 4626 1 

2 Minimum tax credit carryforward from 2015. Enter the amount from line 9 of the 2015 Form 8827 2 

3 Enter any 2015 unallowed qualified electric vehicle credit (see instructions) . . . . . . . 3 

4 Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . . . . . . . . . 4 

5 Enter the corporation’s 2016 regular income tax liability minus allowable tax credits (see 

instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 

6 Is the corporation a “small corporation” exempt from the AMT for 2016 (see instructions)?

• Yes. Enter 25% of the excess of line 5 over $25,000. If line 5 is $25,000 or less, enter -0-

• No. Complete Form 4626 for 2016 and enter the tentative minimum tax from line 12 . . . 6 

7 a Subtract line 6 from line 5. If zero or less, enter -0- . . . . . . . . . . . . . . . 7a 

b For a corporation electing to accelerate the minimum tax credit, enter the bonus depreciation

amount attributable to the minimum tax credit (see instructions) . . . . . . . . . . . 7b

c Add lines 7a and 7b . . . . . . . . . . . . . . . . . . . . . . . . . 7c 

8 a Enter the smaller of line 4 or line 7c. If the corporation had a post-1986 ownership change or 

has pre-acquisition excess credits, see instructions . . . . . . . . . . . . . . . 8a 

b Current year minimum tax credit. Enter the smaller of line 4 or line 7a here and on Form 1120, 

Schedule J, Part I, line 5d (or the applicable line of your return). If the corporation had a 

post-1986 ownership change or has pre-acquisition excess credits, see instructions. If you

made an entry on line 7b, go to line 8c. Otherwise, skip line 8c . . . . . . . . . . . 8b

c Subtract line 8b from line 8a. This is the refundable amount for a corporation electing to 

accelerate the minimum tax credit. Include this amount on Form 1120, Schedule J, Part II, line

19c (or the applicable line of your return) . . . . . . . . . . . . . . . . . . 8c 

9 Minimum tax credit carryforward to 2017. Subtract line 8a from line 4. Keep a record of this

amount to carry forward and use in future years . . . . . . . . . . . . . . . . 9 

Instructions

Section references are to the Internal 

Revenue Code unless otherwise noted.

What's New

Modifications to the election to accelerate 

the minimum tax credit in lieu of claiming 

the bonus depreciation allowance apply to 

qualified property placed in service in tax 

years ending after December 31, 2015. See 

the instructions for line 7b.

Purpose of Form

Corporations use Form 8827 to figure the 

minimum tax credit, if any, for AMT 

incurred in prior tax years and to figure any 

minimum tax credit carryforward.

Who Should File

Form 8827 should be filed by corporations 

that had:

• An AMT liability in 2015,

• A minimum tax credit carryforward from 

2015 to 2016, or

• A qualified electric vehicle credit not 

allowed for 2015 (see the instructions for 

line 3).

Line 3

Enter any qualified electric vehicle credit 

not allowed for 2015 solely because of 

tentative minimum tax limitations.

Line 5

Enter the corporation’s 2016 regular 

income tax liability (as defined in section 

26(b)) minus any credits allowed under 

Chapter 1, Subchapter A, Part IV, subparts 

B, D, E, and F of the Internal Revenue 

Code (for example, if filing Form 1120, 

subtract any credits on Schedule J, Part I, 

line 5a, through 5c, from the amount on 

Schedule J, Part I, line 2). 

Line 6

See the 2016 Instructions for Form 4626 to 

find out if the corporation is treated as a 

“small corporation” exempt from the AMT 

for 2016. If the corporation is a “small 

corporation” exempt from the AMT, see 

section 38(c)(6) before completing line 6 for 

special rules that apply to controlled 

corporate groups.

Line 7b

Election To Accelerate Minimum Tax 

Credit in Lieu of Bonus Depreciation

A corporation can elect to claim unused 

minimum tax credits in lieu of claiming the 

special depreciation allowance (bonus 

depreciation) for qualified property (as 

defined in section 168(k)(2)) placed in 

service during the tax year. Once made, 

this election cannot be revoked without IRS 

consent.

If the corporation elects to accelerate the 

minimum tax credit and obtain a refundable 

credit in lieu of the special depreciation 

allowance, complete the Worksheet for 

Calculating the Refundable Minimum Tax

Credit Amount, later in the instructions. 

Enter the amount from line 9 of the 

worksheet on Form 8827, line 7b. All 

others, enter zero on line 7b.

For fiscal year corporations with tax 

years beginning in 2015 and ending in 

2016, the limitation on the bonus 

depreciation amount is calculated 

differently for property placed in service 

during that fiscal year that is subject to 

section 168(k)(4), as amended by Public 

Law 114-113. The fiscal year corporation 

should modify the worksheet to reflect that 

different calculation. See section 168(k)(4), 

as modified.

If a partnership has a single corporate 

partner that owns (directly or indirectly) 

more than 50% of the capital and profits 

interests in the partnership at all times 

during the tax year, then each partner 

takes into account its distributive share of 

partnership depreciation in determining its 

bonus depreciation amount. For more 

information, see section 168(k)(4)(D)(iii).

For more information on the election to 

accelerate the minimum tax credit in lieu of 

claiming the special depreciation 

allowance, see section 168(k)(4). For more 

information on the special depreciation 

allowance, see the Instructions for Form 

4562 and Pub. 946, How To Depreciate 

Property.

For Paperwork Reduction Act Notice, see instructions. Cat. No. 13008K Form 8827 (2016)
Form 8827 (2016) Page 2 

Worksheet for Calculating the Refundable Minimum Tax Credit Amount. See instructions. Keep for your records.

1 Enter depreciation (including the special depreciation allowance) that would have been allowed for any

qualified property placed in service during the tax year, if sections 168(k)(1) and 168(k)(2)(F) had applied

to such property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 

2 Enter depreciation for any qualified property placed in service during the tax year, figured without regard

to sections 168(k)(1) and 168(k)(2)(F) . . . . . . . . . . . . . . . . . . . . . . . 2 

3 Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . 3 

4 Multiply line 3 by 20% (0.20) . . . . . . . . . . . . . . . . . . . . . . . . . 4 

5 Enter the minimum tax credit for the corporation's first tax year ending after 2015 . . . . . . . . . 5 

6 Multiply line 5 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . 6 

7 Enter any unused minimum tax credit carryforward from tax years beginning before 2016 . . . . . 7 

8 Enter the smaller of line 6 or line 7 . . . . . . . . . . . . . . . . . . . . . . . . 8 

9 Refundable minimum tax credit. Enter the smaller of line 4 or line 8. Enter the amount from line 9 on 

Form 8827, line 7b . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 

S corporations that make the election to 

accelerate the minimum tax credit can use 

the credit only against the built-in gains 

tax. See the Instructions for Schedule D 

(Form 1120S). Corporations that file Form 

1120-REIT or Form 1120-RIC must apply 

the credit first against the built-in gains tax, 

if any, and reduce the refundable credit by 

the amount so applied. See the instructions 

for the Built-in Gains Tax Worksheet in the 

instructions for those forms. 

Line 8

If the corporation had a post-1986 

ownership change (as defined in section 

382(g)), there may be a limit on the amount 

of pre-change minimum tax credits that 

can be applied against the corporation’s 

tax for any tax year ending after the 

ownership change. See section 383 and 

the related regulations. To figure the 

amount of the pre-change credit, the 

corporation must allocate the credit for the 

change year between the pre-change 

period and the post-change period. The

corporation must use the same method of 

allocation (ratable allocation or 

closing-of-the-books) for purposes of 

sections 382 and 383. See Regulations 

section 1.382-6 for details.

Also, there may be a limit on the use of 

pre-acquisition excess credits of one 

corporation to offset the tax attributable to 

recognized built-in gains of another 

corporation. See section 384 for details.

If either limit applies, attach a 

computation of the allowable minimum tax 

credit, enter the amount on lines 8a and 

8b, and write “Sec. 383” or “Sec. 384” on 

the dotted line to the left of the line 8a and 

8b entry spaces.

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 

business taxpayers filing this form is 

approved under OMB control number 

1545-0123 and is included in the estimates 

shown in the instructions for their business 

income tax return.

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.