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. 1545-1257

2012

Name Employer identification number

1 Alternative minimum tax (AMT) for 2011. Enter the amount from line 14 of the 2011 Form 4626 1 

2 Minimum tax credit carryforward from 2011. Enter the amount from line 9 of the 2011 Form 8827 2 

3 Enter any 2011 unallowed qualified electric vehicle credit (see instructions) . . . . . . . 3 

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

5 Enter the corporation’s 2012 regular income tax liability minus allowable tax credits (see 

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

6 Is the corporation a “small corporation” exempt from the AMT for 2012 (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 2012 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 2013. 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

The election to claim a refundable credit for 

certain unused minimum tax credits in lieu of 

the special depreciation allowance for 

qualified property has been extended to 

round 3 extension property placed in service 

after December 31, 2012, and before January 

1, 2014. 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 2011,

• A minimum tax credit carryforward from 

2011 to 2012, or

• A qualified electric vehicle credit not allowed 

for 2011 (see the instructions for line 3).

Line 3

Enter any qualified electric vehicle credit 

not allowed for 2011 solely because of 

tentative minimum tax limitations.

Line 5

Enter the corporation’s 2012 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 

you are 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 2012 Instructions for Form 4626 to 

find out if the corporation is treated as a 

“small corporation” exempt from the AMT for 

2012. If the corporation is a “small 

corporation” exempt from the AMT, see 

section 38(c)(5) before completing line 6 for 

special rules that apply to controlled 

corporate groups, regulated investment 

companies, and real estate investment trusts.

Line 7b

Round 2 extension property. If the 

corporation made an election under section 

168(k)(4)(A) to claim pre-2006 unused 

minimum tax credits in lieu of claiming the 

special depreciation allowance for certain 

property for its first tax year ending after 

March 31, 2008, or under section 168(k)(4)(H)

(ii) for its first tax year ending after December 

31, 2008, the election continues to apply to 

round 2 extension property (defined below) 

unless the corporation made an election not 

to apply the original election to round 2 

extension property. 

Generally, round 2 extension property is 

property that is eligible qualified property 

solely because it meets the requirements 

under the extension of the additional special 

depreciation allowance to certain property 

placed in service after December 31, 2010, 

and before January 1, 2013. See section 

168(k)(4)(l).

If the corporation did not make the election 

for either its first tax year ending after March 

31, 2008, or its first tax year ending after 

December 31, 2008, the corporation may 

elect, for its first tax year ending after 

December 31, 2010, to claim pre-2006 

unused minimum tax credits in lieu of claiming 

the special depreciation allowance for round 2 

extension property. This election is effective 

for each subsequent year for round 2 

extension property only.

Once made, the elections cannot be 

revoked without IRS consent. 

Round 3 extension property. For a fiscal 

year corporation with a tax year ending after 

December 31, 2012, if the corporation made 

an election to claim pre-2006 unused 

minimum tax credits in lieu of claiming the 

special depreciation allowance for certain 

qualified property for either its first tax year 

ending after March 31, 2008, its first tax year 

ending after December 31, 2008, or its first 

tax year ending after December 31, 2010, the 

election continues to apply to round 3 

extension property (defined below) placed in 

service after December 31, 2012, unless the 

corporation makes an election not to apply 

Cat. No. 13008K Form 8827 (2012)
Form 8827 (2012) Page 2 

Worksheet for Calculating the Refundable Minimum Tax Credit Amount (keep for your records)

(a) 

Round 2 

extension property

(b) 

Round 3 

extension property

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

allowed for round 2 extension property placed in service during the tax year, or round 3

extension property placed in service after December 31, 2012, if section 168(k)(1) and 

section 168(k)(5), as appropriate, had applied to such property . . . . . . . . . 1 

2 Enter depreciation for round 2 extension property placed in service during the tax year, or 

round 3 extension property placed in service after December 31, 2012, figured without 

regard to section 168(k)(1) and section 168(k)(5), as appropriate . . . . . . . . . 2 

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

4 Multiply line 3 by 20% . . . . . . . . . . . . . . . . . . . . . . 4 

5 Enter any unused minimum tax credit carryforward from tax years beginning before 2006 . . 5 

6 Multiply line 5 by 6% . . . . . . . . . . . . . . . . . . . . . . . 6 

7 Enter the smaller of line 6 or $30,000,000 . . . . . . . . . . . . . . . . 7 

8 Enter any bonus depreciation amounts determined under section 168(k)(4)(C) attributable

to round 2 extension property or round 3 extension property as appropriate, for all 

preceding tax years ending after December 31, 2010 . . . . . . . . . . . . 8 

9 Subtract line 8 from line 7. If zero or less, enter -0- . . . . . . . . . . . . . 9 

10 Bonus depreciation amount. Enter the smaller of line 4 or line 9 . . . . . . . . . 10 

11 Enter the amount from line 8 allocated to the minimum tax credit carryforward shown on

line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 

12 Maximum bonus depreciation amount allocable to the minimum tax credit. Subtract line 11 

from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . 12 

13 Refundable minimum tax credit. Enter the smaller of line 12 or line 10 in appropriate 

columns. Enter the total of line 13, columns (a) and (b) on Form 8827, line 7b . . . . 13 

the original election to round 3 extension 

property.

Generally, round 3 extension property is 

property that is eligible qualified property 

solely because it meets the requirements 

under the extension of the additional special 

depreciation allowance to certain property 

placed in service after December 31, 2012, 

and before January 1, 2014. See section 

168(k)(4)(J).

If the corporation did not make the election 

for either its first tax year ending after March 

31, 2008, its first tax year ending after 

December 31, 2008, or its first tax year ending 

after December 31, 2010, the corporation may 

elect, for its first tax year ending after 

December 31, 2012, to claim pre-2006 

unused minimum tax credits in lieu of claiming 

the special depreciation allowance for round 3 

extension property.

Once made, the elections 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 above. Enter the total of line 

13, columns (a) and (b), of the worksheet on 

Form 8827, line 7b. All others, enter zero on 

line 7b.

For more information on the elections to 

accelerate the minimum tax credit in lieu of 

claiming 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.

S corporations that make the election to 

accelerate the 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 separate 

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-thebooks) 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” in the dotted line to the left 

of the line 8a and 8b entry spaces.

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The time needed to complete and file this 

form will vary depending on individual 

circumstances. The estimated average time 

is: Recordkeeping, 8 hr., 07 min., Learning 

about the law or the form, 1 hr., 47 min., 

Preparing and sending the form to the IRS, 

2 hr., 00 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.