U.S. Income Tax Return for Estates and Trusts

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2025

Instructions for Form 3468
Investment Credit
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments
For the latest information about developments related to
Form 3468 and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form3468.
New Form 7220. If you’re claiming a credit under section
48C in Part III; under section 48E in Part V; or under
section 48 in Part VI, and you’re claiming the increased
credit amount for meeting the prevailing wage and
apprenticeship requirements, you must file Form 7220,
Prevailing Wage and Apprenticeship (PWA) Verification
and Corrections, for each facility, property, project, or
energy storage technology, as applicable. See Form 7220
for more information.
Part I, line 2b. This line was divided into two checkboxes
and an entry space for the Department of Energy (DOE)
control number. If you’re claiming a credit under Part V,
Section A, complete Part I, line 2b, as applicable. See Part
I, Line 2b, for more information.
Part IV, advanced manufacturing investment credit.
For a taxpayer with a fiscal year ending in 2026, the
advanced manufacturing investment credit is equal to
35% of the qualified investment for property placed in
service after 2025. See Part IV, later.
Part V, clean electricity investment credit. P.L. 119-21
has restricted material assistance from prohibited foreign
entities, added restrictions for prohibited foreign entities,
and added a termination of the credit for wind or solar
facilities placed in service after 2027 where the beginning
of construction is after July 4, 2026. See Part V, later, for
more information.
Part VI, energy credit. P.L. 119-21, commonly known as
the One Big Beautiful Bill Act, has restricted the applicable
percentage for certain qualifying geothermal energy
property and certain qualifying solar energy property. See
Part VI, later, for more information.
Part VII, lines 1h and 1i. The transition rule under the
rehabilitation credit in Part VII was removed.

Reminders
Pre-filing registration. The IRS established a pre-filing
registration process that must be completed prior to
electing payment or transfer of the investment credit
figured in Parts III, IV, V, and VI. See Pre-filing Registration
Requirement for Payments and Transfers, later.

Nov 26, 2025

Tax-exempt and governmental entities. Applicable
entities (such as certain tax-exempt and governmental
entities) can elect to treat certain investment credits as a
payment of income tax. See Applicable Entities, later.
Transfer of certain investment tax credits. Eligible
taxpayers, partnerships, and S corporations can elect to
transfer all or part of the credit amount otherwise allowed
as a general business credit to an unrelated third party in
exchange for cash. Eligible taxpayers don’t include
applicable entities. See Credit Transfers, later.
Elective payment for advanced manufacturing investment credit. Eligible taxpayers, partnerships, and S
corporations can elect to treat advanced manufacturing
investment credit as a payment of tax. See Elective
Payment Under Section 48D(d), later.

General Instructions
Purpose of Form

Use a separate Form 3468 to enter information and
amounts in the appropriate parts to claim a credit for each
investment property and any unused investment credit
amount from cooperatives.

Complete a separate Form 3468 to claim an investment
credit for each facility or property. You must complete Part
I to report facility or property information and the
appropriate part (Part II–VII) to compute your investment
credit for such facility or property.
• Part II—Qualifying Advanced Coal Project Credit,
section A.
• Part II—Qualifying Gasification Project Credit,
section B.
• Part III—Qualifying Advanced Energy Project Credit.
• Part IV—Advanced Manufacturing Investment Credit.
• Part V—Clean Electricity Investment Credit, sections
A through C.
• Part VI—Energy Credit, sections A through N.
• Part VII—Rehabilitation Credit.
Note: If you are an individual and file electronically, you
must send in a paper Form 8453, U.S. Individual Income
Tax Transmittal for an IRS e-file Return, if attachments are
required for Form 3468.
Cooperatives. Patrons, including cooperatives that are
patrons in other cooperatives, file a separate Form 3468 to
enter any unused qualifying advanced coal project credit,
qualifying gasification project credit, qualifying advanced

Instructions for Form 3468 (2025) Catalog Number 12277P
Department of the Treasury Internal Revenue Service www.irs.gov

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What’s New

Facility information. Form 3468 and its instructions
were changed to require separate information and
computation of investment tax credit for each facility or
property. See Part I, Information on Qualified Property or
Qualified Facility, later.

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energy project credit, advanced manufacturing investment
credit, clean electricity investment credit, energy credit, or
rehabilitation credits allocated from cooperatives. Enter
“Unused Investment Credit from Cooperatives” on a
separate Form 3468, Part I, line 3a, and enter the total
unused amounts (if any) on the applicable part below.
• Part II, line 6.
• Part III, line 2.
• Part IV, line 2.
• Part V, section C, line 10.
• Part VI, section N, line 31.
• Part VII, line 2.
Transferee partnerships, S corporations, and cooperatives. See Transferee of Eligible Credits Under Section
6418 in the Instructions for Form 3800 for information
concerning partnerships, S corporations, and
cooperatives that purchase credits under section 6418.
Investment credit property is any depreciable or
amortizable property that qualifies for the qualifying
advanced coal project credit, qualifying gasification
project credit, qualifying advanced energy project credit,
advanced manufacturing investment credit, clean
electricity investment credit, energy credit, or rehabilitation
credit.
You can’t claim a credit for property that is:

• Used mainly outside the United States (except for
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property described in section 168(g)(4));
Used by a governmental unit or foreign person or
entity (see Exceptions, below);
Used for lodging or in the furnishing of lodging (see
section 50(b)(2) for exceptions); or
Certain MACRS business property to the extent it has
been expensed under section 179.

Exceptions

• Investment credit property used by a governmental

•

unit or foreign person or entity 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.
A tax-exempt organization or governmental entity
which is generally unable to claim an investment credit
must complete and attach Form 3468 and Form 3800
to Form 990-T or other applicable income tax return to
claim a section 48C credit, section 48E credit, or
section 48 credit for which an election is made under
section 6417 for any tax year. See the Instructions for
Form 3800, at IRS.gov/Form3800.

Qualified Progress Expenditures

Qualified progress expenditures are those expenditures
made before the property is placed in service and for
which the taxpayer has made an election to treat the
expenditures as progress expenditures.
Qualified progress expenditures is any property that is:

• Being constructed by or for the taxpayer,
• Has a normal construction period of 2 years or more,
• The useful life of the property will be 7 years or more,
and

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investment credit property in the hands of the taxpayer
when it is placed in service.

The placed-in-service requirement doesn't apply to
qualified progress expenditures.
Qualified progress expenditures for:

• Self-constructed property means the amount that is
•

properly chargeable (during the tax year) to a capital
account with respect to that property; or
Non-self-constructed property means the lesser of (a)
the amount paid (during the tax year) to another
person for the construction of the property; or (b) the
amount that represents the proportion of the overall
cost to the taxpayer of the construction by the other
person, which is properly attributable to that portion of
the construction that is completed during the tax year.

Note: A lessor of progress expenditures property may not
elect to treat a lessee (or a person who will be a lessee)
as having made qualified progress expenditures.
For more information on qualified progress
expenditures, see section 46(d) (as in effect on November
4, 1990) and Regulations section 1.46-5. For details on
qualified progress expenditures for the rehabilitation
credit, see section 47(d).
For details on qualified progress expenditures for the
advanced manufacturing investment credit, see
Regulations section 1.48D-2(j)(3).

At-Risk Limit for Individuals and
Closely Held Corporations

The cost or basis of property for investment credit
purposes may be limited if you borrowed against the
property and are protected against loss, or if you borrowed
money from a person who is related or who has an
interest (other than as a creditor) in the business activity.
The cost or basis must be reduced by the amount of the
nonqualified nonrecourse financing related to the property
as of the close of the tax year in which the property is
placed in service. If, at the close of a tax year following the
year property was placed in service, the nonqualified
nonrecourse 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.

Recapture of Credit

You may have to refigure the investment credit and
recapture all or a portion of it if any of the following apply.
• 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.
Instructions for Form 3468 (2025)

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Investment Credit Property

• Is reasonable to believe that the property will be new

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• Any building to which section 47(d) applies will no
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Instructions for Form 3468 (2025)

• Any qualified facility property that ceases to be

property eligible for the low-income communities
bonus credit under section 48E(h). See Regulations
section 1.48E(h)-1(n) for more information.

Exceptions to recapture. Recapture of the investment
credit doesn’t apply to any of the following.
1. A transfer due to the death of the taxpayer.
2. 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.
3. A transaction to which section 381(a) applies (relating
to certain acquisitions of the assets of one corporation
by another corporation).
4. A mere change in the form of conducting a trade or
business if:
a. The property is retained as investment credit
property in that trade or business, and
b. 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.
Any required increase in the amount due for certain
credit recaptures, excessive payments, excessive credit
transfers, and prevailing wage and apprenticeship penalty
amounts are reported on Form 4255, Certain Credit
Recapture, Excessive Payments, and Penalties. For more
information, see Form 4255 and its instructions.

Specific Instructions
S Corporations, Partnerships,
Estates, and Trusts

Complete and attach a separate Form 3468 to your return
for each facility or property that you use in your trade or
business, even if the following apply.
1. You cannot claim the credit.
2. You didn’t elect to treat section 48D credit as a
payment under section 48D(d).
3. You didn’t elect to transfer section 48C credit, section
48E credit, or section 48 credit (or portion of such
credits) under section 6418.

To figure the cost or basis of each facility or property to
pass through to the individual shareholders, partners, or
beneficiaries, complete required facility information lines
of Part I and only the following.
• Part II, lines 1a, 2a, 3a, 4a, 5a, and 6 (if applicable).
• Part III, lines 1a, 1d, 1e, 1f, and 2 (if applicable).
• Part IV, lines 1a, 1b, and 2 (if applicable).
• Part V, lines 1a, 1i, 3a, 6a, and 10 (if applicable).
• Part VI, lines 1a, 3a, 3e, 5a, 5c, 5f, 5o, 7a, 7j, 9a, 9b,
11d, 11h, 13a, 15a, 17a, 17e, 19a, 21a, 23a, 23e, 25a,
25d, 25g, 25j, 28a, and 31 (if applicable).
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longer be a qualified rehabilitated building when
placed in service.
Any property to which progress expenditures under
section 48(b), 48A(b)(3), 48B(b)(3), 48C(b)(2), 48D(b)
(5), or 48E 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, estate, or trust
that allocated the cost or basis of property to you for
which you claimed a credit.
Any facility, property, project, or energy storage
technology under sections 48E or 48 that you claimed
the increased credit amount for satisfying the PWA
requirements and you fail to satisfy the prevailing
wage requirements with respect to alteration or repair
during the 5-year period beginning on the date the
facility, property, project, or energy storage technology
is placed in service. See Regulations sections
1.48E-3(e) and 1.48-13(c)(4).
You return leased property (on which you claimed a
credit) to the lessor before the end of the recapture
period.
A net increase in the amount of nonqualified
nonrecourse financing occurs for any property to
which section 49(a)(1) applied.
You engage in an applicable transaction (involving the
material expansion of semiconductor manufacturing
capacity), as defined in section 50(a)(7)(D). See
Regulations section 1.50-2 for more information.
Emissions tier recapture event, where you fail to
obtain an annual verification report by the deadline for
filing your federal income tax return (including
extensions) for any tax year in which an annual
verification report is required under Regulations
section 1.48-15(e)(1).
Emissions tier recapture event, where the specified
clean hydrogen production facility actually produced
hydrogen through a process (or processes) that
results in a lifecycle greenhouse gas (GHG) emissions
rate that can only support a lower energy percentage
than the energy percentage used to calculate the
amount of the section 48 credit for such facility for the
year in which the facility is placed in service.
Emissions tier recapture event, where the specified
clean hydrogen production facility actually produced
hydrogen through a process (or processes) that
results in a lifecycle GHG emissions rate of greater
than 4 kilograms of CO2e per kilogram of hydrogen.
See Regulations section 1.48-15(f).
Any qualified solar or wind facility property that ceases
to be property eligible for the low-income communities
bonus credit under section 48(e). See Regulations
section 1.48(e)-1(n) for more information.
Any qualified facility for which you claimed a section
48E credit that has a greenhouse gas emissions rate
(as determined under Regulations section 1.45Y-5) of
greater than 10 grams of CO2e per kWh during the
5-year period beginning on the date such qualified
facility is originally placed in service (5-year recapture
period). See Regulations section 1.48E-4(f) for more
information.

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• Part VII, lines 1a through 1g, 1k, 1m, and 2 (if
applicable).

Attach a statement to Schedule K-1 that provides this
necessary information and distributive share of amounts
that each partner, shareholder, and beneficiary will need
to compute their share of the credit related to investment
property on their Form 3468. See the instructions for Form
1065, U.S. Return of Partnership Income; Form 1120-S,
U.S. Income Tax Return for an S Corporation; Form 1041,
U.S. Income Tax Return for Estates and Trusts; and
Schedules K and K-1 for details.

Elective payment election under sections 6417 and
48D(d)(1). If you’re electing a payment under section
48D, Part IV; or electing to transfer a credit under section
48C, Part III; or electing a payment or transferring under
section 48E, Part V, or section 48, Part VI, you must also
report the current credit amount for such facility or
property on the applicable total line of Form 3468 and the
applicable line of Form 3800, Part III.

For a discussion of what is an applicable entity, see
Applicable entity making an EPE on IRA 2022 credits in
the Instructions for Form 3800. For more information on
elective payment elections under section 6417, see
Elective Payment of Certain Business Credits Under
Section 6417 or Section 48D in the Instructions for Form
3800.

Elective Payment Under Section
48D(d)

For qualified property placed in service after 2022 that is
part of an advanced manufacturing facility, a taxpayer can
elect to treat the credit as a payment against tax. A
partnership or S corporation can elect to receive the credit
as a payment. The following must be filed with your return
to make an elective payment election under section 48D.
• Form 3468; and
• Form 3800.

Caution: This information and the partner’s,
shareholder’s, or beneficiary’s distributive share of
amounts should not include any investment credits for
which an elective payment election was made under
section 48D(d)(2)(A) or a transfer election was made
under section 6418.

For more information on elective payment elections
under section 48D see Elective Payment of Certain
Business Credits Under Section 6417 or Section 48D in
the Instructions for Form 3800.

Elective payment election under section 48D(d)(2)(A)
or elected transfer election under 6418. If you elected
to receive section 48D credit as a payment under section
48D(d)(2)(A); or elected to transfer section 48C credit,
section 48E credit (or portion of such credits), or section
48 credit (or a portion of such credits) under section
6418(c), you must complete all applicable parts and lines
of Form 3468 (including the registration number on line 1
of Part I) to compute the credit amount with respect to the
facility or property.
You must report any credit amount for a facility or
property on Part III, line 3; Part IV, line 3; Part V, line 11; or
Part VI, line 32 of Form 3468, on the applicable lines of
Form 3800, Part III, and attach both to your return.

Under section 6418, eligible taxpayers, partnerships, and
S corporations can elect to transfer all or part of the credit
figured in Part III, Part V, and Part VI to an unrelated third
party in exchange for cash. For more information on credit
transfers, see Transfer of Eligible Credits Under Section
6418 in the Instructions for Form 3800.

Tip: See the Instructions for Form 3800 for determining
credits allowed (in the case of estates and trusts),
reporting of elective payment amount of section 48D
credit and transferred amount and nontransferred amount
(if any) of section 48C, section 48E, and section 48 credits
on Schedules K and K-1 of Form 1065, Form 1120-S, and
Form 1041.

Applicable Entities

Applicable entities as defined under section 6417(d)(1)(A)
that generally don’t benefit from income tax credits can
elect to treat the business credit under sections 48C, 48E,
and 48 as a payment of income tax. Resulting
overpayments may result in refunds.

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Credit Transfers

Pre-filing Registration Requirement
For Payments and Transfers

Before you file your tax return, if you intend to make an
elective payment election or transfer election on Form
3800 for the credit in Part III, IV, V, or VI, you must
complete a pre-filing registration for each property or
facility. To register, go to IRS.gov/Register for elective
payment or transfer of credits. See Pub. 5884, Inflation
Reduction Act (IRA) and CHIPS Act of 2022 (CHIPS)
Pre-Filing Registration Tool. Also see Registering for and
Making EPEs and Transfer Elections in the Instructions for
Form 3800.

Part I—Information on Qualified
Property or Qualified Facility

If you’re claiming an investment credit with respect to a
facility or property, use the table below to enter the facility
information that corresponds to your credit(s).

Instructions for Form 3468 (2025)

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Cooperatives. If you reported any unused investment
credits allocated from cooperatives on a Form 3468, Part
I, line 3a, “Unused Investment Credit from Cooperatives,”
see the reporting instructions for Schedules K and K-1 of
Form 1120-S, Form 1065, or Form 1041.

Applicable entities making the elective payment
election for the investment credits under section 48C,
section 48E, or section 48 must file the following.
• Form 3468 with any required statements.
• Form 3800, General Business Credit.
• Form 990-T, Exempt Organization Business Income
Tax Return or other applicable tax return.

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If You Are Completing. . .

Then Complete Part I . . .

Part II

Lines 1, 3a, 3b, 3c, 3d, 4, 5, and 13

Part III

Lines 1, 3a, 3b, 3c, 3d, 4, 5, and 8

Part IV

Lines 1, 3a, 3b, 3c, 3d, 4, 5, and 13

Part V

Lines 1 and 2b–13

Part VI

Lines 1, and 3–13 (and line 2a(i) and
2a(ii) for credit figured in section M)

Part VII

Lines 1, 3a, 3b, 3c, 3d, 4, 5, and 13

Line 1

Line 2a
For Part VI, Section M filers. Enter the facility’s
emission value or rate (kg of CO2e per kg of qualified
clean hydrogen) on line 2a(i) and the DOE control number
on line 2a(ii).
Provisional emissions rate. As part of the process to
petition for a provisional emissions rate (PER), you must
have submitted an application to the DOE for an
emissions value that you used to figure your energy credit
for a clean hydrogen production facility. See Election to
treat clean hydrogen production facilities as energy
property, later, for reporting requirements.

Line 2b
For Part V, Section A filers. Check the applicable box
on line 2b(i) and/or 2b(ii) if you’re claiming a section 48E
credit for a qualified facility, you petitioned for a PER, have
received an emissions value from the DOE, and/or used a
designated lifecycle analysis (LCA) model to determine an
emissions value. Enter the DOE control number on
line 2b(iii), if applicable.
You must also attach the PER petition for the facility for
which the PER petition relates to the return. The PER
petition must contain an emissions value and, if
applicable, the associated letter from the DOE. If an
emissions value is determined using a designated LCA
model(s), you must also attach information to support your
use of the LCA model(s). See Regulations section
1.48E-5 and Revenue Procedure 2025-14, 2025-7 I.R.B.
770 available at IRS.gov/irb/2025-07_IRB#REVPROC-2025-14 for more information.
PER. In the case of a facility for which an emissions
rate has not been established by the IRS, if you’re the
owner of such facility, you can file a petition with the IRS
for determination of a PER.
As part of the process to petition for a PER, you must
have submitted an application to the DOE for an
Instructions for Form 3468 (2025)

Line 3a

Enter the type of facility or property for which you are
claiming the investment credit.
Patrons, including cooperatives that are patrons in
other cooperatives reporting any unused investment
credits allocated from cooperatives, enter the following
statement on line 3a, “Unused Investment Credit from
Cooperatives.” See Cooperatives, earlier, for more
information.

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Enter your IRS-issued registration number for the facility
or property that you received from the IRS prior to making
an election under section 48D(d), section 6417, or section
6418. See Pre-filing Registration Requirement For
Payments and Transfers, earlier, for more information.
For Part IV filers. Enter the IRS-issued registration
number of the facility if you’re the owner or the IRS-issued
registration number of the qualified investment if you’re not
the owner of the facility.

emissions value that you used to figure your clean
electricity investment credit for a qualified facility.
LCA. Alternatively, an emissions value can be
determined for a facility by using the most recent version
of an LCA model, as of the time the PER petition is filed,
that has been designated by the IRS for such use. See
Regulations section 1.45Y-5(h)(6) for more information.
Emissions value. An emissions value can be obtained
from the DOE or by using the LCA model designated by
the IRS. An emissions value will be based on an analytical
assessment of the emissions rate associated with the
facility performed by one or more of the National
Laboratories, in consultation with other federal agency
experts as appropriate.

Line 3b

If the owner of the facility in Part II, III, IV, V, VI, or VII is
different from the filer, include the owner’s name on
line 3b(i) and the owner’s taxpayer identification number
(TIN) on line 3b(ii).

Lines 3c and 3d

On line 3c, enter the address of the facility or property. On
line 3d, enter the latitude and longitude coordinates of the
facility or property.

Line 3e
For Part V, Section A, or Part VI filers. Check the box if
the facility or energy project includes qualified
interconnection property under section 48E(b)(1)(B)(i) or
section 48(a)(8). See Qualified interconnection property
for a section 48E credit or Interconnection property for a
section 48 credit, later, for more information.

Lines 7 and 8

For an increased tax credit amount under sections 48C,
48E, or 48, you must meet the prevailing wage and
apprenticeship requirements or one of the limited
exceptions, if applicable. Go to Filers Completing Part III
or Filers Completing Part V or VI, as applicable, to
determine which box to check for lines 7 and 8.
Note: The prevailing wage and apprenticeship
requirements generally apply to construction, alteration, or
repair work, including work by contractors and
subcontractors. This also includes work constituting
re-equipping, expansion, or establishment of a section
48C qualifying advanced energy project. There are certain
exceptions to these requirements.

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For further information, see Prevailing wage and
apprenticeship requirements available at IRS.gov/creditsdeductions/prevailing-wage-and-apprenticeshiprequirements, including frequently asked questions.

Filers Completing Part III

Lines 7 and 8. For line 7, check box 7c. For line 8, check
box 8a or 8c, as appropriate.

Filers Completing Part V or VI

As part of a section 48C(e) application, an applicant
must confirm that it intends to meet the prevailing wage
and apprenticeship requirements by filing the “Initial PWA
Confirmation” statement with the Department of Energy
(DOE). When the taxpayer notifies the DOE that it has
placed the project in service, the taxpayer must also
confirm that it met the prevailing wage and apprenticeship
requirements by filing the “Final PWA Confirmation”
statement with the DOE.

However, if you do not meet the prevailing wage and
apprenticeship requirements or one of the limited
exceptions, then you will qualify for the base 6% credit
rate but not for the increased rate.

If a taxpayer doesn’t provide an Initial and Final PWA
Confirmation statement to the DOE, the taxpayer will be
required to claim the section 48C credit at the 6% credit
rate and the remainder of the section 48C credits
allocated to the project will be forfeited.

See Frequently asked questions about the prevailing
wage and apprenticeship under the Inflation Reduction
Act available at IRS.gov/creditsdeductions/ frequentlyasked-questions-about-the-prevailing-wage-andapprenticeship-under-the-inflation-reduction-act.

Prevailing wage requirements. Under the prevailing
wage requirements, you must ensure that laborers and
mechanics employed by you (or any contractor or
subcontractor) are paid wages at rates not less than the
applicable prevailing wage rate for the re-equipping,
expansion, or establishment of a qualifying advanced
energy project.
For information on how to correct a failure to satisfy the
prevailing wage requirements, and the penalty related to
the failure, see section 45(b)(7)(B), and the Instructions
for Forms 4255, and 7220.
Apprenticeship requirements. The apprenticeship
requirements apply with respect to the construction of a
facility and include three components: a labor hours
requirement, a ratio requirement, and a participation
requirement.
• Under the labor hours requirement, the taxpayer must
ensure that, depending on when construction began,
12.5% to 15% of the total labor hours are performed
by qualified apprentices from a registered apprentice
program for the re-equipping, expansion, or
establishment of a qualifying advanced energy
project.
• Under the ratio requirement, the taxpayer must ensure
that the applicable ratio of apprentices to
journeyworkers established by the registered
apprenticeship program is met for apprentices working
on the qualified advanced energy project each day.
• Under the participation requirement, any taxpayer (or
contractor or subcontractor) that employs four or more
individuals must employ one or more qualified
apprentices from a registered apprenticeship
programs to perform the work.

For an increased tax credit under section 48E or 48, you
must meet the prevailing wage and apprenticeship
requirements or one of the limited exceptions.

Qualified facility under section 48E(a)(2)(A)(ii). A
qualified facility meets the requirements of an increased
tax credit if it’s any one of the following.
1. It has a maximum net output of less than 1 megawatt
(MW) (as measured in alternating current (ac)).
2. Construction began before January 29, 2023.
3. The qualified facility meets the prevailing wage and
apprenticeship requirements.
Energy storage technology under section 48E(a)(2)
(B)(ii). Energy storage technology meets the
requirements of an increased tax credit if it’s any one of
the following.
1. It has a capacity of less than 1 MW.
2. Construction began before January 29, 2023.
3. The energy storage technology meets the prevailing
wage and apprenticeship requirements.
Energy project under section 48(a)(9)(A)(i). An
energy project is a project consisting of one or more
energy properties that are part of a single project under
section 48.
A project meets the requirements of an increased tax
credit if it’s any one of the following.
1. It has a maximum net output of less than 1 MW of
electrical (as measured in ac) or thermal energy.
2. Construction began before January 29, 2023.
3. The energy project meets the prevailing wage and
apprenticeship requirements.
Beginning of construction. There are two methods that
can be used to establish that construction of a qualified

6

Instructions for Form 3468 (2025)

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For an increased tax credit under section 48C, you must
meet the prevailing wage and apprenticeship
requirements with respect to any qualified advanced
energy project.

See sections 48C(e)(6), 45(b)(8), T.D. 9998 available at
IRS.gov/irb/2024-34_IRB#TD-9998, and Notice 2023-18
for more information.
For information on how to correct a failure to satisfy the
apprenticeship requirements and the penalty related to
the failure, see section 45(b)(8) and the Instructions for
Forms 4255 and 7220.

TREASURY/IRS AND OMB USE ONLY DRAFT
facility, an energy storage technology, or an energy project
has started: the physical work test and the 5% safe
harbor. Although both methods can be used, only one
method is needed to establish that construction has
begun.
Physical work test. Under this test, construction
begins when physical work of a significant nature begins,
provided that the filer maintains a continuous program of
construction.
5% safe harbor. Using this safe harbor, construction
will be considered as having begun if:
1. A taxpayer pays or incurs (within the meaning of
Regulations section 1.461-1(a)(1) and (2)) 5% or
more of the total cost, and
2. Thereafter, the taxpayer makes continuous efforts to
complete the facility, energy storage technology, or
energy project.

Prevailing wage requirements. To meet the prevailing
wage requirements, a taxpayer must ensure that any
laborers and mechanics employed by the taxpayer or any
contractor or subcontractor in the construction (and for the
5-year recapture period for alteration or repair) are paid
wages at rates not less than the applicable prevailing
wage rate.
For information on how to correct a failure to satisfy the
prevailing wage requirements and the penalty related to
the failure, see section 45(b)(7)(B) and the Instructions for
Forms 4255 and 7220.
Apprenticeship requirements. The apprenticeship
requirements include three components: a labor hours
requirement, a ratio requirement, and a participation
requirement.
• Under the labor hours requirement, the taxpayer must
ensure that, depending on when construction began,
10% to 15% of the total labor hours are performed by
qualified apprentices from a registered apprentice
program for the construction of a property, facility, or
energy storage technology.
• Under the ratio requirement, the taxpayer must ensure
that the applicable ratio of apprentices to
journeyworkers established by the registered
apprenticeship program is met for apprentices working
on the property, facility, or energy storage technology
each day.
• Under the participation requirement, any taxpayer (or
contractor or subcontractor) that employs four or more
individuals must employ one or more qualified
apprentices from a registered apprenticeship program
to perform the work.
For information on how to correct a failure to satisfy the
apprenticeship requirements and the penalty related to
the failure, see section 45(b)(8) and the Instructions for
Forms 4255 and 7220.
Lines 7 and 8. For line 7, if you’re completing Part VI,
section M, check box 7c. If completing any other section
of Part V or Part VI, check the applicable box.
Instructions for Form 3468 (2025)

Increased Credit Amount Statement
If you checked the box on line 7a or 8b to claim an
increased tax credit amount in Part V or Part VI, you must
also attach a statement for each facility, energy storage
technology, or energy project, to your return. The
statement should include the following.
1. Your name, taxpayer identification number, the facility
description (including the owner information, if
different from the filer from Part I, line 3b(i) and 3b(ii)),
and, if applicable, the IRS-issued registration number
from Part I, line 1.
2. If you checked the box on line 7a, a statement that the
qualified facility or energy project has a maximum net
output of less than 1 MW (as measured in ac) or
equivalent thermal energy.
3. For the facility, energy storage technology, or energy
project that began construction before January 29,
2023, indicate that you met the continuity requirement
under the physical work test or the 5% safe harbor to
establish the beginning of construction.
4. For the facility, energy storage technology, or energy
project that began construction on or after January
29, 2023, where you qualify for the increased credit
amount based on the prevailing wage and
apprenticeship requirements, complete Form 7220
and attach it to your return.
5. A declaration, applicable to the statement and any
accompanying documents, signed by you, or signed
by a person currently authorized to bind you in such
matters, in the following form: “Under penalties of
perjury, I declare that I have examined this statement,
including accompanying documents, and to the best
of my knowledge and belief, the facts presented in
support of this statement are true, correct, and
complete.”

Line 9

Notice 2023-38 explains rules for how filers receive a
domestic content bonus credit amount for certain
investments in section 48E facilities or energy storage
technology, or section 48 energy projects. This notice
describes certain rules regarding the domestic content
bonus credit requirements, related recordkeeping, and
certification requirements. It also describes a safe harbor
regarding the classification of certain components in
representative types of qualified facilities, energy projects,
or energy storage technologies. See Notice 2023-38,
2023-22 I.R.B. 872 available at IRS.gov/irb/
2023-22_IRB#NOT-2023-38.
Notice 2024-41 modifies Notice 2023-38, in three ways.
1. It expands the list of applicable projects to include
hydropower and pumped hydropower storage
facilities.
2. It redesignates the utility scale photovoltaic system
applicable project as the ground-mount and rooftop
photovoltaic system.
7

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Note: See T.D. 9998 available at IRS.gov/irb/
2024-34_IRB#TD-9998 and Regulations section 1.45-7
and 1.45-8 for detailed information.

For line 8, check box 8b or 8c, as appropriate.

TREASURY/IRS AND OMB USE ONLY DRAFT
3. It includes certain manufactured product components
with respect to the previously listed applicable
projects.
It also provides a new safe harbor that taxpayers may
elect to use to classify applicable project components and
to calculate the domestic cost percentage in an applicable
project (new elective safe harbor) to qualify for the
domestic content bonus credit amounts. See Notice
2024-41, 2024-24 I.R.B. 1615 available at IRS.gov/irb/
2024-24_IRB#NOT-2024-41, for more information.

On or Before
From
06/15/25
06/16/25 to
12/31/25

In
2026

Total costs of all
products mined,
produced, or
manufactured in the
United States

40%

45%

50%

Total costs of all
products mined,
produced, or
manufactured in the
United States for
qualified offshore wind
facilities

20%

27.5%

35%

Line 9. Check the appropriate box on line 9. If you
checked line 9c, you can’t claim the domestic content
bonus credit amount.

Domestic Content Certification Statement

Domestic content bonus credit amount. Section 48(a)
(12)(C) provides a domestic content bonus credit amount
for a section 48E qualified investment in a facility or
energy storage technology or section 48 energy project by
increasing the percentage provided in section 48E(a)(2) or
48(a)(2) by 2% for meeting the domestic content
requirement (see below) or 10% for meeting the domestic
content requirement and the requirements described
under lines 7 and 8, for Filers Completing Part V or VI.

If you checked line 9a or 9b to claim a domestic content
bonus credit amount in Part V or Part VI, you must also
attach a domestic content certification statement to Form
3468 at the time of filing your return for each applicable
project. The domestic content certification statement
should include the following.

Domestic content requirement. The domestic content
requirement is met with respect to any qualified
investment or energy project under Notice 2023-38 (as
modified by Notice 2024-41) if the taxpayer certified to the
Secretary (see Domestic Content Certification Statement,
later) that any steel, iron, or manufactured product that is a
component of the facility (upon completion of
construction) was produced in the United States. A
qualified facility meets the domestic content requirement if
the steel or iron requirements and the manufacturing
products requirements are met. See Notice 2023-38 and
Notice 2024-41 for definitions and more information.

2. The facility description (including the owner
information, if different from the filer from Part I,
line 3b(i) and 3b(ii)) and the IRS-issued registration
number (if applicable) of the applicable project from
Part I, line 1.

Caution: For a section 48E domestic content bonus
credit requirement for a qualified investment with respect
to a qualified facility or energy storage technology, the
manufactured products requirements have changed
based on beginning of construction date. See the table
below for the requirements.

1. Your name and taxpayer identification number shown
on the return.

3. A statement that any steel, iron, or manufactured
product that is a component of the facility (upon
completion of construction) was produced in the
United States (as determined under section 661 of
Title 49, Code of Federal Regulations).
4. A statement if the taxpayer is affirming that they are
electing to rely on the New Elective Safe Harbor per
Notice 2024-41.
5. A declaration applicable to the statement and any
accompanying documents signed by you or signed by
a person currently authorized to bind you in such
matters, in the following form: “Under penalties of
perjury, I declare that I have examined the information
contained in this Domestic Content Certification
Statement and to the best of my knowledge and
belief, it is true, correct, and complete.”

Line 10

Notice 2023-29 explains the application of rules that a filer
must satisfy to qualify for the energy community bonus
credit under sections 48E and 48. The notice describes
certain rules for determining what constitutes an energy
community as defined in section 45(b)(11)(B) and for
determining whether a qualified facility, an energy storage
technology, or an energy project is located in an energy

8

Instructions for Form 3468 (2025)

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DRAFT

Notice 2025-08 modifies the New Elective Safe Harbor
in Notice 2024-41 by updating the tables in sections
4.04(1)-(3), clarifying the rules and defined terms,
reclassifying the Manufactured Products and
Manufactured Product Components, and providing new
associated cost percentages for those components.
Notice 2025-08 further preserves the modifications
completed in section 3 of Notice 2024-41 of Table 2 in
Notice 2023-38. See Notice 2025-08, 2025-8 I.R.B. 800
available at IRS.gov/irb/2025-08_IRB#NOT-2025-8, for
more information.

Beginning of
construction

TREASURY/IRS AND OMB USE ONLY DRAFT
community. See Notice 2023-29, 2023-29 I.R.B. 1
available at IRS.gov/irb/2023-29_IRB#NOT-2023-29.
Notice 2023-45 clarifies section 5.02(3) of Notice
2023-29 which describes requirements for a brownfield
site safe harbor for projects with a nameplate capacity of
not greater than 5 MW in alternating current. This notice
also describes a prior modification that was made via an
online update pertaining to the special rule for beginning
of construction under section 4.01(2) of Notice 2023-29.
See Notice 2023-45, 2023-29 I.R.B. 317 available at
IRS.gov/irb/2023-29_IRB#NOT-2023-45.

Notice 2024-30 clarifies Notice 2023-29 (which is
clarified by Notice 2023-45) by expanding the nameplate
capacity attribution rule under section 4.02(1)(b) of Notice
2023-29 to include additional attribution property and by
adding two 2017 North American Industry Classification
System (NAICS) industry codes to the table in section
3.03(2) of Notice 2023-29 for purposes of determining the
Fossil Fuel Employment rate (as defined in section 3.03(2)
of Notice 2023-29). See Notice 2024-30, 2024-16 I.R.B.
878 available at IRS.gov/irb/2024-16_IRB#NOT-2024-30.
Notice 2025-31 publishes information that taxpayers
may use to determine whether they meet certain
requirements under the Statistical Area Category or Coal
Closure Category as described in Notice 2023-29. See
Notice 2025-31, 2025-28 I.R.B. 14 available at
IRS.gov/irb/2025-28_IRB#NOT-2025-31.
Energy community bonus credit rate. An energy
community bonus credit rate increase is allowed under
section 48E(a)(3)(A) for any qualified investment (with
respect to a qualified facility or energy storage technology)
that is placed in service during the tax year within an
energy community (EC Project). An energy community
bonus credit rate increase is also allowed under section
48(a)(14) for an energy project eligible for the credit under
section 48 that is placed in service during the tax year
within an EC Project.
Section 45(b)(11)(B) provides an energy community
bonus credit amount for a section 48E qualified
investment in a facility or energy storage technology or
section 48 energy project by increasing the percentage
provided in section 48E(a)(2) or 48(a)(2) by 2% for
meeting the EC Project requirement (see below) or 10%
for meeting the EC Project requirement and the
requirements described under lines 7 and 8, for Filers
Completing Part V or VI.

2. A metropolitan statistical or nonmetropolitan statistical
area that:
a. Has (or, at any time during the period beginning
after 2009, had) 17% or greater direct employment
or 25% or greater local tax revenues related to the
extraction, processing, transport, or storage of
coal, oil, or natural gas (as determined by the
Secretary); and
b. Has an unemployment rate at or above the
national average unemployment rate for the
previous year (as determined by the Secretary); or
3. A census tract or a census tract directly adjoining to
such census tract in which:
a. After 1999, a coal mine has closed; or
b. After 2009, a coal-fired electric generating unit has
been retired.
Line 10. Check the appropriate box on line 10. If you
checked the box on line 10c, you can’t claim the energy
community bonus credit amount.

Lines 11 and 12

IRA 2022 added new section 48E(h) and 48(e), referred to
as the low-income communities bonus credit program, to
increase the amount of the credit determined under
section 48E(a) and section 48(a) with respect to an
eligible property.

If you’re claiming a low-income communities bonus
credit in Part V or Part VI, go to Filers Completing Part V or
Filers Completing Part VI, as applicable, to determine the
requirements that must be met to qualify for the credit and
to identify which box to check for lines 11 and 12.

Filers Completing Part V
IRA 2022 added new section 48E(h) to authorize the
Secretary to establish a program for calendar years 2025
and subsequent years to award allocations of capacity
limitation that increase the amount of the new clean
electricity investment credit determined under section
48E(a) with respect to eligible property that is part of an
applicable facility.
Section 48E(h)(1) provides for an increase of either
10% or 20% to the credit under section 48E(a)(2) for
facilities that receive an allocation of capacity limitation.
The low-income communities bonus credit is only eligible
for Part V, Section A filers.

EC Project requirements. The EC Project requirement
is met when a section 48E (a qualified facility or energy
storage technology) or section 48 (an energy project) is
placed in service within an energy community.

T.D. 10025 provides final regulations regarding clean
electricity low-income communities bonus credits
amounts for calendar year 2025 and subsequent years.

Energy community. Energy community means the
following:

Applicable facility. Applicable facility means any
qualified facility under section 48E(b)(3) that:

Instructions for Form 3468 (2025)

DRAFT

DRAFT

Notice 2023-47 has information that taxpayers may use
to determine whether they meet certain requirements
under the Statistical Area Category or the Coal Closure
Category as described in Notice 2023-29 to qualify for
energy community bonus credit rates under section 48E
or section 48. See Notice 2023-47, 2023-29 I.R.B. 318
available at IRS.gov/irb/2023-29_IRB#NOT-2023-47.

1. A brownfield site as defined in subparagraphs (A),
(B), and (D)(ii)(III) of section 101(39) of the
Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C.
9601(39));

9

TREASURY/IRS AND OMB USE ONLY DRAFT
1. Is not described in section 45Y(b)(2)(B) (related to
fuel combustion and gasification facilities).
2. Has a maximum net output of less than 5 MW ac, and
3. Is one of the following:
a. Located in a low-income community (as defined in
section 45D(e));
b. Located on Indian land, as defined in section
2601(2) of the Energy Policy Act of 1992 (25
U.S.C. 3501(2));
c. Part of a qualified low-income residential building
project; or
d. Part of a qualified low-income economic benefit
project.
Applicable percentage. The increased percentage with
respect to categories of applicable facilities is as follows:

10%

Eligible property located in a low-income
community (as defined in section 45D(e))

10%

Eligible property located on Indian land, as
defined in section 2601(2) of the Energy Policy
Act of 1992 (25 U.S.C. 3501(2))

20%

Eligible property that is part of a qualified
low-income residential building project

20%

Eligible property that is a qualified low-income
economic benefit project

Eligible property. Eligible property means a qualified
investment with respect to any applicable facility.
Credit reduction. The increase in the credit will not
exceed the amount that bears the same ratio as the
environmental justice capacity limitation allocated to such
facility bears to the total megawatt nameplate capacity of
such facility, as measured in direct current.
Lines 11 and 12. Check the appropriate box on line 11. If
you checked the box on line 11a, 11b, 11c, or 11d, you
must enter the section 48E(h) control number on line 11e.
If you are a pass-through entity, enter the originating
pass-through entity’s EIN, if applicable, on line 11f.
You must also check the appropriate box on line 12 and
enter the nameplate capacity for your facility.

Filers Completing Part VI
If you applied for and received an allocation from the
low-income communities bonus credit program from either
2023 or 2024, you may increase the amount of your
energy credit for a qualified solar or wind facility computed
in Part VI, sections B, F, I, or L. Only filers who applied for
and received an allocation of environmental justice solar
and wind capacity limitation and properly placed in service
a qualified solar or wind facility are eligible to claim an
increased credit.

10

Rev. Proc. 2024-19 provides the process under section
48(e) to apply for an allocation of environmental justice
solar and wind capacity limitation for the 2024 Program
year. For taxpayers who received an allocation for the
2024 Program year, Rev. Proc. 2024-19 also describes
how the capacity limitation for the 2024 Program year will
be divided across the facility categories. See Rev. Proc.
2024-19, 2024-16 I.R.B. 899 available at IRS.gov/irb/
2024-16_IRB#REV-PROC-2024-19 for more information.
T.D. 9979 contains final regulations concerning the
application of the low-income communities bonus credit
program. Under this program, applicants investing in
certain solar or wind-powered electricity generation
facilities for which the applicants otherwise would be
eligible for an energy investment credit may apply for an
allocation of environmental justice solar and wind capacity
limitation to increase the amount of the energy investment
credit. It also provides definitions and requirements that
are applicable for this program. See T.D. 9979 available at
IRS.gov/irb/2023-35_IRB#TD-9979 and Regulations
section 1.48(e)-1 for more information.
Low-income communities bonus credit amount.
Section 48(e) provides for an increase of either 10% or
20% to the credit under section 48(a)(2) for qualified solar
and wind facilities which received an allocation of capacity
limitation from 2023 or 2024. Additionally, if you received
an allocation you must also have the control number
associated with that allocation.
Energy percentage. The increased energy percentage
with respect to categories of eligible property and
limitation is:
Percentage For an . . .
10%

Eligible property located in a low-income
community (as defined in section 45D(e))

10%

Eligible property located on Indian land, as
defined in section 2601(2) of the Energy Policy
Act of 1992 (25 U.S.C. 3501(2))

20%

Eligible property that is part of a qualified
low-income residential building project

20%

Eligible property that is a qualified low-income
economic benefit project

Eligible property and requirements. For purposes of
this increase, eligible energy property includes:
• Wind facility property defined in section 45(d)(1) for
which an election was made to treat qualified facilities
as energy property;
• Solar energy property to generate electricity defined in
section 48(a)(3)(i);
• Qualified small wind energy property defined in
section 48(a)(3)(vi); and
Instructions for Form 3468 (2025)

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Percentage For an . . .

Rev. Proc. 2023-27 provided the process under section
48(e) to apply for an allocation of capacity limitation for
2023. This revenue procedure also provides the
placed-in-service reporting requirements for taxpayers
who received an allocation from the 2023 Program year.

TREASURY/IRS AND OMB USE ONLY DRAFT

• Energy storage technology described in section 48(a)

(3)(A)(ix) installed in connection with the above facility
properties.

The property also has to meet the following eligibility
requirements:
1. A maximum net output of less than 5 MW as
measured in alternating current; and
2. The facility is one of the following:
a. Located in a low-income community (as defined in
section 45D(e));
b. Located on Indian land, as defined in section
2601(2) of the Energy Policy Act of 1992 (25
U.S.C. 3501(2));
c. Part of a qualified low-income residential building
project; or

Credit reduction. The increase in the credit will not
exceed the amount that bears the same ratio as the
environmental justice solar and wind capacity limitation
allocated to such facility bears to the total megawatt
nameplate capacity of such facility, as measured in direct
current, or in the case of wind, alternating current will be
treated as direct current.
Lines 11 and 12. Check the appropriate box on line 11. If
you checked the box on line 11a, 11b, 11c, or 11d, you
must enter the section 48(e) control number on line 11e.
If you are a pass-through entity, enter the originating
pass-through entity’s EIN, if applicable, on line 11f.
You must also check the appropriate box on line 12 and
enter the nameplate capacity or storage capacity installed
in connection with your property.

Line 13

Generally, for purposes of eligibility for and figuring the
amount of the investment credit, a lessor of property may
elect to treat the lessee as having acquired the property.
Once the election is made, the lessee will be entitled to an
investment credit for that property for the tax year in which
the property is placed in service and the lessor will not be
entitled to such a credit.
If the leased property is disposed of or otherwise
ceases to be investment credit property, the property will
generally be subject to the recapture rules for early
dispositions.
The lessor will provide the lessee with all the
information needed to complete Part VII, lines 1a through
1g and 1k, if applicable.
For information on making the election, see section
48(d) (as in effect on November 4, 1990) and related
regulations. For limitations, see sections 46(e)(3) and
48(d) (as in effect on November 4, 1990).

Line 13b

Enter the lessor’s full address on line 13b. Enter the
address of the lessor’s principal office or place of
Instructions for Form 3468 (2025)

Do not use the address of the registered agent for the
state in which the lessor is incorporated. For example, if a
business is incorporated in Delaware or Nevada and the
lessor’s principal place of business is located in Little
Rock, AR, you should enter the Little Rock address.
If the lessor receives its mail in care of a third party
(such as an accountant or attorney), enter on the street
address line “C/O” followed by the third party’s name and
street address or P.O. box.

Part II—Qualifying Advanced Coal
Project Credit and Qualifying
Gasification Project Credit
Section A—Qualifying Advanced Coal Project
Credit Under Section 48A

A qualifying advanced coal project is a project that:
• Uses advanced coal-based generation technology (as
defined in section 48A(f)) to power a new electric
generation unit or to refit or repower an existing
electric generation unit (including an existing
natural-gas-fired combined cycle unit);
• Has fuel input that, when completed, will be at least
75% coal;
• Has an electric generation unit or units at the site that
will generate at least 400 MW;
• Has a majority of the output that is reasonably
expected to be acquired or utilized;
• Is to be constructed and operated on a long-term
basis when the taxpayer provides evidence of
ownership or control of a site of sufficient size;
• Will be located in the United States; and
• Includes equipment that separates and sequesters at
least 65% (70% in the case of an application for
reallocated credits) of the project’s total carbon
dioxide emissions for project applications described in
section 48A(d)(2)(A)(ii).

For more information on the third allocation round for
section 48A credits, see Notice 2020-88, 2020-53 I.R.B.
1795 available at IRS.gov/irb/2020-53_IRB#NOT-2020-88.
Basis. The qualified investment for any tax year is the
basis of eligible property placed in service by the taxpayer
during the tax year that is part of a qualifying advanced
coal project. Eligible property is limited to property that
can be depreciated or amortized and that was
constructed, reconstructed, or erected and completed by
the taxpayer or that is acquired by the taxpayer if the
original use of such property commences with the
taxpayer.
Basis reduction for certain financing. If property is
financed in whole or in part by subsidized energy
financing or by tax-exempt private activity bonds, the
amount that you can claim as basis is the basis that would
otherwise be allowed multiplied by a fraction that is 1
reduced by a second fraction, the numerator of which is
that portion of the basis allocable to such financing or
11

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d. Part of a qualified low-income economic benefit
project.

business. Include the suite, room, or other unit number
after the street address. If the post office doesn’t deliver
mail to the street address and the lessor has a P.O. box,
show the box number instead.

TREASURY/IRS AND OMB USE ONLY DRAFT
bonds, and the denominator of which is the basis of the
property.
For example, if the basis of the property is $100,000
and the portion allocable to such financing or bonds is
$20,000, the fraction of the basis that you may claim the
credit on is 4/5 (that is, 1 minus $20,000/$100,000).
Subsidized energy financing means financing provided
under a federal, state, or local program, a principal
purpose of which is to provide subsidized financing for
projects designed to conserve or produce energy.

Line 1a

Integrated gasification combined cycle is an electric
generation unit that 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 2a
Enter the qualified investment in advanced coal-based
generation technology property placed in service during
the tax year for projects described in section 48A(d)(3)(B)
(ii). Eligible property is any property that is part of a
qualifying advanced coal project (defined earlier) not
using an integrated gasification combined cycle.

Line 3a
Enter the qualified investment in advanced coal-based
generation technology property placed in service during
the tax year for projects described in section 48A(d)(3)(B)
(iii). Eligible property is any certified property located in
the United States and that is part of a qualifying advanced
coal project (defined earlier) that has equipment that
separates and sequesters at least 65% of the project’s
total carbon dioxide emissions. This percentage increases
to 70% if the credits are later reallocated by the IRS.
The credit will be recaptured if a project fails to attain or
maintain the carbon dioxide separation and sequestration
requirements. For details, see section 48A(i) and Notice
2011-24, 2011-14 I.R.B. 603 available at IRS.gov/irb/
2011-14_IRB#NOT-2011-24.

Section B—Qualifying Gasification Project
Credit Under Section 48B

A qualifying gasification project is a project that:
• Employs gasification technology (as defined in section
48B(c)(2)),
• Is carried out by an eligible entity (as defined in
section 48B(c)(7)), and
12

not to exceed $650 million is certified under the
qualifying gasification program as eligible for credit.

The total amount of credits that may be allocated under
the qualifying gasification project program may not exceed
$600 million.
For more information on the qualifying gasification
project and the qualifying gasification program, see Notice
2009-23, 2009-16 I.R.B. 802 available at IRS.gov/irb/
2009-16_irb#NOT-2009-23, which is amplified by Notice
2014-81, 2014-53 I.R.B. 1001 available at IRS.gov/irb/
2014-53_IRB#NOT-2014-81. Also, see Notice 2011-24,
2011-14 I.R.B. 603 available at IRS.gov/irb/
2011-14_IRB#NOT-2011-24.
Basis reduction. If property is financed in whole or in
part by subsidized energy financing or by tax-exempt
private activity bonds, figure the credit by using the basis
of such property reduced under the rules described in
Basis reduction for certain financing, earlier.

Line 4a
Enter the qualified investment in qualifying gasification
project property placed in service during the tax year for
which credits were allocated or reallocated after October
3, 2008, and that includes equipment that separates and
sequesters at least 75% of the project’s carbon dioxide
emissions. Qualified investment is the basis of eligible
property placed in service during the tax year that is part
of a qualifying gasification project.
For 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. The IRS is required to recapture the benefit of any
allocated credit if a project fails to attain or maintain these
carbon dioxide separation and sequestration
requirements. See section 48B(f) and Notice 2011-14,
2011-11 I.R.B. 554 available at IRS.gov/irb/
2011-14_IRB#NOT-2011-24.

Line 5a
Enter the qualified investment, other than any amount
included in line 4a, in qualifying gasification project
property (defined earlier) placed in service during the tax
year.

Line 6
Patrons, including cooperatives that are patrons in other
cooperatives, enter the unused investment credit from the
qualifying advanced coal project credit or qualifying
gasification project credit allocated from cooperatives. If
you are a cooperative, see the Instructions for Form 3800,
Part III, line 1a, for allocating the investment credit to your
patrons.
Tip: See Cooperatives, earlier, for filing Form 3468 to
report any unused credits from cooperatives.
Instructions for Form 3468 (2025)

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Enter the qualified investment in integrated gasification
combined cycle property placed in service during the tax
year for projects described in section 48A(d)(3)(B)(i).
Eligible property is any property that 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.

• Includes a qualified investment of which an amount

TREASURY/IRS AND OMB USE ONLY DRAFT

Qualifying advanced energy project means a project that:
• Re-equips, expands, or establishes an industrial or a
manufacturing facility for the production or recycling of
specified advanced energy property;
• Re-equips any industrial or manufacturing facility, with
equipment designed to reduce greenhouse gas
emissions by at least 20% through the installation of:
• Low- or zero-carbon process heat systems;
• Carbon capture, transport, utilization, and
storage systems;
• Energy efficiency and reduction in waste from
industrial processes; or
• Any other industrial technology designed to
reduce greenhouse gas emissions, as determined
by the Secretary;
• Re-equips, expands or establishes an industrial facility
for the processing, refining, or recycling of critical
materials (as defined in section 7002(a) of the Energy
Act of 2020);
• The Secretary has certified per section 48C(e)(3) that
part or all of the qualified investment in the qualifying
advanced energy project is eligible for a section 48C
credit; and
• The project does not include any portion of a project
for the production of any property that is used in the
refining or blending of any transportation fuels (other
than renewable fuels).

Specified advanced energy property. The term
specified advanced energy property means any of the
following:
• Property designed for use in the production of energy
from the sun, water, wind, geothermal deposits (within
the meaning of section 613(e)(2)), or other renewable
resources;
• Fuel cells, microturbines, or energy storage systems
and components;
• Electric grid modernization equipment or components;
• Property designed to capture, remove, use, or
sequester carbon oxide emissions;
• Equipment designed to refine, electrolyze, or blend
any fuel, chemical, or product which is renewable, or
low carbon and low emission;
• Property designed to produce energy conservation
technologies (including residential, commercial, and
industrial applications);
• Light-, medium-, or heavy-duty electric or fuel cell
vehicles, as well as technologies, components, or
materials for such vehicles, and associated charging
or refueling infrastructure;
• Hybrid vehicles with a gross vehicle weight rating of
not less than 14,000 pounds as well as technologies,
components, or materials for such vehicles; or
• Other advanced energy property designed to reduce
greenhouse gas emissions as may be determined by
the Secretary.
Eligible property. Eligible property is property that:
• Is necessary for the production or recycling of property
described in section 48C(c)(1)(A)(i); re-equipping an
Instructions for Form 3468 (2025)

•
•
•

industrial or manufacturing facility described in section
48C(c)(1)(A)(ii); or re-equipping, expanding, or
establishing an industrial facility described in section
48C(c)(1)(A)(iii);
Which depreciation or amortization is allowable;
Is tangible personal property or other tangible property
(not including a building or its structural components),
but only if the property is used as an integral part of
the qualifying advanced energy project; and
Was not placed in service prior to being awarded an
allocation of section 48C credits under the section
48C(e) program. See Notice 2023-44, 2023-25 I.R.B.
924 available at IRS.gov/irb/
2023-25_IRB#NOT-2023-44.

Caution: You cannot claim any investment credits for a
facility or property under section 48C if you also claimed
credits under section 45X. See Regulations section
1.45X-1(g) for more details.
Certification. To be eligible for the qualifying advanced
energy project credit, some or all of the qualified
investment in the qualifying advanced energy project must
be certified by the IRS under section 48C(d). See Notice
2023-18, 2023-10 I.R.B. 508 available at IRS.gov/irb/
2023-10_IRB#NOT-2023-18, for more information on the
certification and program.
See Notice 2023-44 for additional guidance for
applicants seeking section 48C credit allocations in the
qualifying advanced energy project credit allocation
program under IRA 2022. See Notice 2023-44, 2023-25
I.R.B. 924 available at IRS.gov/irb/
2023-25_IRB#NOT-2023-44.
See Notice 2024-36 which clarifies and amplifies the
previously established 48C(e) guidance and allocation
procedures by announcing the second round of credit
allocations. See Notice 2024-36, 2024-24 I.R.B. 1479
available at IRS.gov/irb/2024-24_IRB#NOT-2024-36.

Line 1a

Enter the qualified investment in qualifying advanced
energy project property placed in service during the tax
year. Qualified investment is the basis of eligible property
placed in service during the tax year that is part of a
qualifying advanced energy project.

Line 1b

If you met the prevailing wage and apprenticeship
requirements described in Part I, lines 7 and 8, Filers
Completing Part III, earlier, and the certification for
prevailing wage and apprenticeship requirements was met
as part of the 48C(e) application per Notice 2023-18,
section 5.07, then enter 30%. Otherwise, enter 6%.

Line 1d

Enter your 48C allocation control number for the qualifying
advanced energy property.

Line 1f

If the TIN from Part I, line 3b(ii), is different than the
originating pass-through entity’s employer identification
number (EIN), then enter the originating pass-through
EIN. Otherwise, leave blank.
13

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Part III—Qualifying Advanced Energy
Project Credit Under Section 48C

TREASURY/IRS AND OMB USE ONLY DRAFT
Line 2

Patrons, including cooperatives that are patrons in other
cooperatives, enter the unused investment credit from the
qualifying advanced energy property credit allocated from
cooperatives. If you are a cooperative, see the instructions
for Form 3800, Part III, line 1d, for allocating the
investment credit to your patrons.

Tip: See Cooperatives, earlier, for filing Form 3468 to
report any unused credits from cooperatives.

Line 3
Partnerships or S corporations. If you’re a partnership
or S corporation requesting an election to transfer a
qualifying advanced energy credit with respect to a project
(or portion of) under section 6418(c), you must report the
total credit amount on line 3 and Form 3800, Part III,
line 1d.

The advanced manufacturing investment credit is equal to
25% of the qualified investment with respect to any
advanced manufacturing facility of an eligible taxpayer in
the tax year. See Regulations section 1.48D-1 for more
information.
Note: In the statement above, the 25% is increased to
35% for property placed in service after 2025 where a
2025 fiscal-year filer has a tax year ending in 2026.
Caution: You cannot claim any advanced manufacturing
investment credit for any tax year if the beginning of
construction of the qualified property begins after 2026.
Eligible taxpayer. An eligible taxpayer is a taxpayer who
isn’t a foreign entity of concern (as defined in section
9901(6) of P. L. 116-283), and hasn’t made an applicable
transaction (as defined in section 50(a)) during the tax
year.
Qualified investment. The qualified investment for any
advanced manufacturing facility is the basis of any
qualified property placed in service by the taxpayer during
the tax year that is part of an advanced manufacturing
facility.
Advanced manufacturing facility. Advanced
manufacturing facility means a facility whose primary
purpose is the manufacturing of semiconductors or
semiconductor manufacturing equipment. See
Regulations section 1.48D-4.
Semiconductor. The term semiconductor means an
integrated electronic device or system most commonly
manufactured using materials such as, but not limited to,
silicon, silicon carbide, or III–V compounds, and
processes such as, but not limited to, lithography,
deposition, and etching. Such devices and systems
include, but are not limited to, analog and digital
electronics, power electronics, and photonics; for memory,
processing, sensing, actuation, and communications
applications.

14

1. Semiconductor wafer production includes the
processes of growing single-crystal ingots and
boules, wafer slicing, etching and polishing, bonding,
cleaning, epitaxial deposition, and metrology.
2. Semiconductor fabrication includes the process of
forming devices such as transistors, poly capacitors,
non-metal resistors, and diodes, as well as
interconnects between such devices, on a wafer of
semiconductor material.
3. Semiconductor packaging means the process of
enclosing a semiconductor in a protective container
(package) and providing external power and signal
connectivity for the assembled integrated circuit and
includes the process of assembly and testing of
semiconductors and advanced packaging of
semiconductors.
4. Assembly includes, but is not limited to, wafer-dicing,
die-bonding, wire bonding, solder bumping, and
encapsulation.
5. Testing includes, but is not limited to, probing,
screening, and burn-in work.
6. Advanced packaging means a subset of packaging
technologies that uses novel techniques and
materials to increase the performance, power,
modularity, and/or durability of an integrated circuit.
Advanced packaging technologies include flip-chip,
2D, 2.5D, and 3D stacking, fan-out and fan-in, and
embedded die/system-in-package (SiP).
Manufacturing of semiconductor manufacturing
equipment. The term manufacturing of semiconductor
manufacturing equipment means the physical production
(in a manufacturing facility) of semiconductor
manufacturing equipment, which is used by an advanced
manufacturing facility engaged in the manufacturing of
semiconductors.
Semiconductor manufacturing equipment. The term
semiconductor manufacturing equipment means the
highly engineered and specialized equipment used in the
manufacturing of semiconductors and the subsystems
that enable or are incorporated into the manufacturing
equipment. Specific examples of semiconductor
manufacturing equipment and subsystems that enable
semiconductor manufacturing equipment include but are
not limited to:
1. Deposition equipment, including Chemical Vapor
Deposition (CVD), Physical Vapor Deposition (PVD),
Electrodeposition, and Atomic Layer Deposition
(ALD);
2. Etching equipment (wet etch, dry etch);
Instructions for Form 3468 (2025)

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Part IV—Advanced Manufacturing
Investment Credit Under Section 48D

Semiconductor manufacturing. The term
semiconductor manufacturing and the term manufacturing
of semiconductors are synonymous and mean,
semiconductor wafer production, semiconductor
fabrication, or semiconductor packaging. The following
terms have the following meanings in connection with
semiconductor wafer production, semiconductor
fabrication, and semiconductor packaging.

TREASURY/IRS AND OMB USE ONLY DRAFT

15. Photomasks and light sources used in
photolithography.

See Regulations section 1.48D-3(c) for more
information.

Qualified property. Qualified property includes any
building or its structural components and all of the
following.
• Property that is tangible property.
• Property that is allowed depreciation or amortization.
• Property that is constructed, reconstructed, or erected
by the taxpayer or acquired by the taxpayer if the
original use of the property commences with the
taxpayer.
• Property that is integral to the operation of the
advanced manufacturing facility. See Regulations
section 1.48D-3(g) for more information.

Coordination with rehabilitation credit. The qualified
investment with respect to any advanced manufacturing
facility for any tax year can’t include the portion of the
basis of any property that is attributable to qualified
rehabilitation expenditures (as defined in section 47(c)
(2)). See Regulations section 1.48D-1(c)(2) for an
example.

Exception. Qualified property doesn’t include a
building or a portion of a building used for offices,
administrative services, or other functions unrelated to
manufacturing.
Buildings or portions of buildings not excluded.
Buildings or portions of buildings not treated as offices
and that are considered related to manufacturing of
semiconductors or semiconductor manufacturing

Line 1b

4. Chemical-mechanical polishing equipment to
planarize layers through the semiconductor
fabrication process;
5. Lithography equipment (steppers and scanners of
various light wavelengths, such as deep UV, extreme
ultraviolet (EUV), photoresist coating, and developer
tracks);
6. Equipment for producing ingots and boules, wafer
growth equipment, wafer slicing equipment, wafer
dicing equipment, and wire bonders;
7. Inspection and measuring equipment, including
scanning electron microscopes, atomic force
microscopes, optical inspection systems, wafer
probes and optical scatterometer, and Energy
Dispersive Spectroscopy;

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8. Certain metrology and inspection systems to measure
critical dimensions of the integrated circuit features
throughout the fabrication process, detection and
measurement of defects on the wafers during the
fabrication process;
9. Ion implantation and diffusion/oxidation furnaces;
10. Specialty glass components including EUV mirrors
and optical pathways, lenses and mirrors used in
inspection equipment and other fabrication
processes, and lens assemblies for wafer defect
inspection;
11. Electrostatic chucks;
12. High performance pumps;
13. High purity quartz devices;

Instructions for Form 3468 (2025)

Certain progress expenditure rules made applicable.
Rules similar to the rules of section 46(c)(4) and 46(d) (as
in effect on the day before the date of the enactment of
P.L. 101-508) apply for purposes of the advanced
manufacturing investment credit.
Enter the basis of the qualified investment with respect to
any advanced manufacturing facility (defined above)
placed in service during the tax year.

Line 1c

For property placed in service before 2026, multiply
line 1b by 25% (0.25).

15

DRAFT

14. Ultra-high vacuum chamber components; and

equipment include buildings or portions of a building used
for:
• Gowning to enter to and from a cleanroom
environment;
• Monitoring operations and remote access of
equipment;
• Functions performed by unit process engineers
including developing, monitoring, updating and
overseeing individual process recipes running on
every tool in the facility to manufacture, measure and
test wafers including access to relevant data, data
analysis, modifications and updates to the process
recipes on the tools;
• Functions performed by equipment engineers
including overseeing tools to ensure proper operation
by accessing data about the tool health and
performance remotely adjusting the tool at
workstations, and issuing work orders to the
equipment and maintenance technicians from the
workstations;
• Functions performed by test engineers including
monitoring the electrical test data being collected from
the wafers at certain points in their processing;
• Functions performed by yield and defect engineers
including reviewing inspection data collected from
wafers;
• Functions performed by metrology engineers including
reviewing physical measurement data collected from
the wafers;
• Functions performed by integration engineers that are
responsible for the technology node and the
end-to-end wafer process;
• Functions performed by facilities engineers including
monitoring and controlling facilities systems; and
• Functions related to central utilities buildings, material
handling and ultrapure water generation facilities, and
computing (data center).

3. Equipment for epitaxial growth of transistor features;

TREASURY/IRS AND OMB USE ONLY DRAFT
For property placed in service after 2025, multiply
line 1b by 35% (0.35). This would apply to fiscal-year filers
who have a tax year ending in 2026.

Line 2

Patrons, including cooperatives that are patrons in other
cooperatives, enter the unused investment credit from the
advanced manufacturing investment credit allocated from
cooperatives. If you are a cooperative, see the instructions
for Form 3800, Part III, line 1o, for allocating the
investment credit to your patrons.
Tip: See Cooperatives, earlier, for filing Form 3468 to
report any unused credits from cooperatives.

Line 3

Part V—Clean Electricity Investment
Credit Under Section 48E
Section A—Qualified Clean Electricity Facilities

The clean electricity investment credit is the applicable
percentage of the qualified investment with respect to any
qualified facility during the tax year.
Note: This credit is available for property placed in
service after 2024.
Qualified investment. The qualified investment with
respect to any qualified facility is the sum of the following.
1. The basis of any qualified property placed in service
by the taxpayer during the tax year which is part of the
qualified facility, and
2. The amount of any expenditures that are paid or
incurred by the taxpayer for qualified interconnection
property in connection with a qualified facility that has
a maximum net output of not greater than 5 MW ac
and placed in service during the tax year, and
properly chargeable to the capital account of the
taxpayer.
Qualified property. Qualified property means property
that is:
• Tangible personal property or other tangible property
(not including a building or its structural components),
but only if it’s used as an integral part of the qualified
facility;
• Depreciation or amortization is allowable; and
• The construction, reconstruction, or erection is
completed by the taxpayer or is acquired by the
taxpayer if the original use of the property starts with
the taxpayer.
Qualified facility. A qualified facility means a facility that
is used for the generation of electricity and is placed in
service after 2024, and the anticipated greenhouse
emissions rate (under Regulations section 1.48E-5) is not
greater than zero.
16

Caution: You cannot claim the clean electricity
investment credit for a facility for which a credit
determined under section 45, 45J, 45Q, 45U, 45Y, 48, or
48A is allowed under section 38 for the tax year or any
prior tax year.
Caution: For tax years starting after July 4, 2025, no
credit will be allowed for property described in section
25D(d)(1) or (4) if the taxpayer rents or leases such
property to a third party during the tax year.
Qualified interconnection property. Qualified
interconnection property is, with respect to a qualified
facility that isn’t a microgrid controller, any tangible
property that:
• Is part of an addition, modification, or upgrade to a
transmission or distribution system that is required at
or beyond the point at which the qualified facility
interconnects to such transmission or distribution
system in order to accommodate such
interconnection;
• Is either constructed, reconstructed, or erected by the
taxpayer, or the cost with respect to the construction,
reconstruction, or erection of such property is paid or
incurred by the taxpayer; and
• The original use, pursuant to an interconnection
agreement, starts with a utility.
Material assistance from prohibited foreign entities.
If the construction, reconstruction, or erection of a
qualified facility or qualified interconnection property,
described earlier, includes any material assistance from a
prohibited foreign entity (as defined in section 7701(a)
(52)) and construction, reconstruction, or erection begins
after 2026, no credit will be allowed.
CO2e per KWh. The term "CO2e per KWh” means, with
respect to any greenhouse gas, the equivalent carbon
dioxide (as determined based on global warming
potential) per kilowatt hour of electricity produced.
Greenhouse gas. Greenhouse gas means carbon
dioxide, hydrofluorocarbons, methane, nitrous oxide,
perfluorocarbons, and sulfur hexafluoride. The
Administrator of Public Health and Welfare may include
any other anthropogenically emitted gas that is
determined by the Administrator of Public Health and
Welfare, after notice and comment, to contribute to global
warming.
Greenhouse gas emissions rate. Greenhouse gas
emissions rate is the amount of greenhouse gases
emitted into the atmosphere by a facility in the production
of electricity, expressed as grams of CO2e per KWh.
Coordination with rehabilitation credit. The qualified
investment for any qualified facility cannot include the
portion of the basis of any property that is attributable to
Instructions for Form 3468 (2025)

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DRAFT

If you are a partnership or S corporation requesting
elective payment with respect to the advanced
manufacturing investment credit under section 48D(d)(2)
(A), you must report the credit amount on line 3 and Form
3800, Part III, line 1o.

A qualified facility will also include either a new unit or
an addition of capacity placed in service after 2024, if the
facility described above (without regard to being placed in
service after 2024), was placed in service before 2025,
but only to the extent of the increased amount of electricity
produced at the facility by reason of such new unit or
addition of capacity.

TREASURY/IRS AND OMB USE ONLY DRAFT
qualified rehabilitation expenditures (as defined in section
47(c)(2)) for any tax year.
Certain progress expenditure rules made applicable.
Rules similar to the rules of section 46(c)(4) and 46(d) (as
in effect on the day before the date of the enactment of
P.L. 101-158) apply for purposes of the clean electricity
investment credit.
Recapture of credit. For purposes of section 50, if the
Secretary determines that the greenhouse gas emissions
rate for a qualified facility is greater than 10 grams of
CO2e per KWh, any property for which a credit was
allowed under this section will cease to be an investment
credit property in the tax year in which the determination is
made.

Line 1b
Enter your applicable percentage. See Increased Credit
Amount Statement, earlier, for more information.
Qualified fuel cell property. Qualified fuel cell property
(defined under section 48(c)(1), without regard to
subparagraph (E)), is a qualified facility if the qualified fuel
cell property is used for the generation of electricity, and
construction begins after 2026. Enter 30% on line 1b for
the applicable percentage.
Caution: If you’re taking a credit for qualified fuel cell
property under section 48(c)(1), no other increases or
adjustments are allowed. Skip lines 1d through 1n and go
to line 2.

Line 1d
Enter your applicable domestic content bonus credit
percentage. See Domestic Content Certification
Statement, earlier, for more information.
If the facility did not meet the requirements for the
domestic content bonus credit, leave line 1d blank, skip
line 1e, and go to line 1f.

Line 1f
Enter your applicable energy community bonus credit
percentage. See Energy community bonus credit rate,
earlier, for more information.
If the facility was not placed in service within an energy
community, leave line 1f blank, skip line 1g, and go to
line 1h.

Enter your applicable low-income communities bonus
credit percentage. See Filers Completing Part V, earlier,
for more information.
However, you don’t qualify for the low-income
communities bonus credit if either of the following apply.
1. You checked the box in Part I, line 11g; or
2. Part I, line 12a(ii), 12b, or 12c(ii), is 5 MW ac or more
(in relation to Part I, lines 11a, 11b, 11c, or 11d).
In the case where either 1 or 2 above apply, enter -0- on
lines 1h and 1n, and go to line 2.

Section B—Qualified Energy Storage
Technology

The clean electricity investment credit is the applicable
percentage of the qualified investment with respect to any
energy storage technology during the tax year.

Note: This credit is available for property placed in
service after 2024.
Qualified investment. The qualified investment with
respect to energy storage technology for any tax year is
the basis of any energy storage technology placed in
service by the taxpayer during the tax year.
Energy storage technology. Energy storage technology
is:
• Property (other than property primarily used in the
transportation of goods or individuals and not for the
production of electricity) that receives, stores, and
delivers energy for conversion to electricity (or, in the
case of hydrogen, that stores energy), and has a
nameplate capacity of not less than 5 kilowatt hours,
and
• Thermal energy storage property.
Modifications of certain property. In the case of any
energy storage technology property described above, the
modified property will be treated as energy storage
technology property (except for the treatment of the basis
of the existing property prior to the modification), if either
of the following applies.
• The property is placed in service before August 16,
2022, has a nameplate capacity of less than 5 kilowatt
hours, and is modified in a manner where the property
has a nameplate capacity of at least 5 kilowatt hours;
or
• The property is modified in a manner that
modifications increase the nameplate capacity by at
least 5 kilowatt hours.

Thermal energy storage property. Thermal energy
storage property is property comprising a system that:
• Is directly connected to a heating, ventilation, or air
conditioning system;
• Removes heat from, or adds heat to, a storage
medium for subsequent use; and
• Provides energy for the heating or cooling of the
interior of a residential or commercial building.
Thermal energy storage property doesn’t include:

• A swimming pool,
Instructions for Form 3468 (2025)

17

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Prohibited foreign entity restrictions. In general, for
tax years beginning after July 4, 2025, no credit will be
allowed for any tax year if the taxpayer is a specified
foreign entity (as defined in section 7701(a)(51)(B) or a
foreign-influenced entity (as defined in section 7701(a)
(51)(D) without regard to clause (i)(ll)). If the taxpayer is a
foreign-influenced entity (as defined in section 7701(a)
(51)(D)(i)(ll)) during any tax year, no credit will be allowed
for any tax year for any qualified facility.

Line 1h

TREASURY/IRS AND OMB USE ONLY DRAFT

• Combined heat and power system property,
• A building or its structural components, or
• Property that transforms other forms of energy into
heat in the first instance. See Regulations section
1.48E-2(g)(6)(ii).

Material assistance from prohibited foreign entities.
If the construction of energy storage technology,
described earlier, includes any material assistance from a
prohibited foreign entity (as defined in section 7701(a)
(52)) and construction begins after 2026, no credit will be
allowed.

Certain progress expenditure rules made applicable.
Rules similar to the rules of section 46(c)(4) and 46(d) (as
in effect on the day before the date of the enactment of
P.L. 101-158) apply for purposes of the clean electricity
investment credit.
Caution: You cannot claim the clean electricity
investment credit for a facility for which a credit
determined under section 45, 45J, 45Q, 45U, 45Y, 48, or
48A is allowed under section 38 for the tax year or any
prior tax year.
Caution: For tax years starting after July 4, 2025, no
credit will be allowed for property described in section
25D(d)(1) or (4) if the taxpayer rents or leases such
property to a third party during the tax year.

Line 3b
Enter your applicable percentage. See Increased Credit
Amount Statement, earlier, for more information.

Line 3d
Enter your applicable domestic content bonus credit
percentage. See Domestic Content Certification
Statement, earlier, for more information.
If the energy storage technology did not meet the
requirements for the domestic content bonus credit, leave
line 3d blank, skip line 3e, and go to line 3f.

Line 3f
Enter your applicable energy community bonus credit
percentage. See Energy community bonus credit rate,
earlier, for more information.
If the energy storage technology was not placed in
service within an energy community, leave line 3f blank,
skip line 3g, and go to line 4.
18

If proceeds of subsidized energy financing or private
activity bonds were not used to finance your qualified
clean electricity facility or your qualified energy storage
technology, skip line 6, and go to line 7.
Credit reduction for Subsidized Energy Financing or
Private Activity Bonds. The amount of the credit with
respect to any facility or energy storage technology for any
tax year will be reduced by the amount that is the product
of the amount of the credit without the reduction for private
activity bonds, for such year and the lesser of one of the
following.
• 15%, or
• A fraction. The numerator is the sum for the tax year
and all prior tax years of proceeds of an issue of any
obligations the interest on which is exempt from tax
under section 103 and that is used to provide
financing for the qualified facility or energy storage
technology, as of the close of the tax year. The
denominator is the aggregate amount of additions to
the capital account for the qualified facility or energy
storage technology for the tax year and all prior tax
years, as of the close of the tax year.

Line 8
Elective payment phaseout for applicable entities. If
you are making an elective payment election under
section 6417 and the facility or energy storage technology
doesn’t meet the rules of section 45Y(g)(12)(B)(i), doesn’t
have a maximum net output of less than 1 MW (as
measured in ac), or meet an exception under section
45Y(g)(12)(D), then multiply line 7 by the applicable
percentage of the year in which construction began below.
All others, enter the amount from line 7.
• Construction began in 2024, 90% (0.90).
• Construction began in 2025, 85% (0.85).
• Construction began after 2025, 0% (0.00).
Exception to elective payment phaseout. For facilities
or energy storage technologies whose construction
begins before the later of calendar year 2025, or further
guidance, Notice 2024-84 provides transitional
procedures to claim the statutory exceptions to the
elective payment phaseout related to the domestic
content requirement.
To substantiate your claim of exception to the elective
payment phaseout, you must complete and attach a
statement to Form 3468. The statement must say, under
penalties of perjury, that you have reviewed the
requirements for the increased cost exception and the
non-availability exception under section 45Y(g)(12)(D),
and have made a good faith determination that the
qualified investment meets the requirements for the
increased cost exception and/or the non-availability
exception, as applicable. The statement must be signed
by a person with the legal authority to bind the applicable
entity in federal tax matters. For more information, see
Instructions for Form 3468 (2025)

DRAFT

DRAFT

Prohibited foreign entity restrictions. In general, for
tax years beginning after July 4, 2025, no credit will be
allowed for any tax year if the taxpayer is a specified
foreign entity (as defined in section 7701(a)(51)(B) or a
foreign-influenced entity (as defined in section 7701(a)
(51)(D) without regard to clause (i)(ll)). If the taxpayer is a
foreign-influenced entity (as defined in section 7701(a)
(51)(D)(i)(ll)) during any tax year, no credit will be allowed
for any tax year for any energy storage technology.

Section C—Totals, Credit Reduction for
Subsidized Energy Financing or Private Activity
Bonds, and Credit Phaseout
Line 6

TREASURY/IRS AND OMB USE ONLY DRAFT
Notice 2024-09 available at IRS.gov/irb/
2024-02_IRB#NOT-2024-9 and Notice 2024-84 available
at IRS.gov/irb/2024-50_IRB#NOT-2024-84.

Line 10
Patrons, including cooperatives that are patrons in other
cooperatives, enter the unused investment credit from the
clean electricity investment credit allocated from
cooperatives. If you are a cooperative, see the instructions
for Form 3800, Part III, line 1v, for allocating the
investment credit to your patrons.
Tip: See Cooperatives, earlier, for filing Form 3468 to
report any unused credits from cooperatives.

Line 11

Part VI—Energy Credit Under Section
48

The energy credit for the tax year is the energy
percentage of the basis of each energy property placed in
service during the tax year. The energy properties include
the following.
• Geothermal energy property.
• Solar energy property to generate electricity, or solar
energy property to illuminate.
• Qualified fuel cell property.
• Qualified microturbine property.
• Combined heat and power system property.
• Qualified small wind energy property.
• Waste energy recovery property.
• Geothermal heat pump system property.
• Energy storage technology property.
• Qualified biogas property.
• Microgrid controllers property.
• Qualified investment credit facility treated as energy
property under section 48(a)(5).
• Clean hydrogen production facility treated as energy
property under section 48(a)(15).
Property requirements. To qualify as energy property
as defined in section 48(a)(3), it must:
1. Meet the performance and quality standards, if any,
that have been prescribed by regulations and are in
effect at the time the property is acquired;
2. Be property for which depreciation (or amortization in
lieu of depreciation) is allowable; and
3. Be property either:
a. The construction, reconstruction, or erection of
which is completed by the taxpayer; or
b. Acquired by the taxpayer if the original use of such
property commences with the taxpayer.

Instructions for Form 3468 (2025)

Basis reduction. If energy property (acquired before
2009, or to the extent of its basis attributable to
construction, reconstruction, or erection before 2009) is
financed in whole or in part by subsidized energy
financing or by tax-exempt private activity bonds, reduce
the basis of such property under the rules described in
Basis reduction for certain financing, earlier.
For energy property that was constructed,
reconstructed, or erected after August 16, 2022, see the
instructions for Section N to reduce the amount of the
credit with respect to any facility financed with tax-exempt
bonds.
Coordination with Department of Treasury grants. In
the case of any property where the Secretary makes a
grant under section 1603 of the American Recovery and
Reinvestment Tax Act of 2009, no credit will be
determined under section 48 or section 45 with respect to
the property for the tax year in which the grant is made or
any subsequent tax year.
Recapture. If a credit was determined with respect to a
property for any tax year ending before the grant is made:
• The tax imposed on the taxpayer for the tax year in
which the grant is made will be increased by the credit
amount allowed under section 38,
• The general business carryforwards under section 39
will be adjusted to recapture the portion of the credit
that was not allowed, and
• The amount of the grant will be determined without
regard to any reduction in the basis of the property by
the credit.
Treatment of grants. Any grant will not be included in
the gross income or alternative minimum taxable income
of the taxpayer, but will be taken into account in
determining the basis of the property to which the grant
relates, except that the basis of such property will be
reduced under section 50(c) in the same manner as a
credit allowed.
Interconnection property. For purposes of determining
the energy credit, energy property shall include amounts
paid or incurred by the taxpayer for qualified
interconnection property in connection with the installation
of energy property placed in service during the tax year
that:
• Has a maximum net output of not greater than 5 MW
(as measured in alternating current), to provide for the

19

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DRAFT

Partnership or S corporation. If you’re a partnership or
S corporation electing to transfer the clean electricity
investment credit with respect to a facility or property (or
portion of) under section 6418(c), you must report the total
credit amount on line 11 and Form 3800, Part III, line 1v.

Energy property doesn’t include any property that is
part of a production credit under section 45 for the tax
year or any prior tax year.
Energy property doesn’t include any property acquired
before February 14, 2008, or to the extent of basis
attributable to construction, reconstruction, or erection
before February 14, 2008, that is public utility property, as
defined by section 46(f)(5) (as in effect on November 4,
1990), and related regulations.
You must reduce the basis of energy property by 50%
of the energy credit determined.
You must reduce the basis of energy property used for
figuring the credit by any amount attributable to qualified
rehabilitation expenditures.

TREASURY/IRS AND OMB USE ONLY DRAFT
•

transmission or distribution of the electricity produced
or stored by such property; and
Are properly chargeable to the capital account of the
taxpayer.

Note: The amounts paid or incurred by the taxpayer for
qualified interconnection property under section 48 must
be included on the basis lines for applicable property on
Form 3468, Part VI, Section A, line 1a; Section B, line 3a;
Section C, line 5f; Section D, line 7a; Section E, line 9a;
Section F, line 11d; Section G, line 13a; Section I, line 17a;
and Section L, line 23a.
Qualified interconnection property does not apply to
Form 3468, Part VI, Section C, line 5a; Sections H, J, K,
M; and parts of Section B (electrochromic glass property
and fiber optic solar energy property) and Section I
(thermal energy storage property and hydrogen energy
storage property).
For more information, see section 48(a)(8) and T.D.
10015 including section 1.48-14(h).
Qualified interconnection property. Qualified
interconnection property is, with respect to an energy
project that isn’t a microgrid controller, any tangible
property that:
• Is part of an addition, modification, or upgrade to a
transmission or distribution system that is required at
or beyond the point at which the energy project
interconnects to such transmission or distribution
system in order to accommodate such
interconnection;
• Is either constructed, reconstructed, or erected by the
taxpayer, or that the cost with respect to the
construction, reconstruction, or erection of such
property is paid or incurred by the taxpayer; and
• The original use, pursuant to an interconnection
agreement, commences with a utility. See Regulations
section 1.48–14(h)(2) for more information.
Interconnection agreement. Interconnection
agreement means an agreement with a utility for the
purposes of interconnecting the energy property owned
by the taxpayer to the transmission or distribution system
of the utility. See Regulations section 1.48-14(h)(4) for
more information.
Utility. For the purposes of section 48(a)(8), utility
means the owner or operator of an electrical transmission
or distribution system that is subject to the regulatory
authority of any the following.
• A state or political subdivision thereof.
• Any agency or instrumentality of the United States.
• A public service or public utility commission or other
similar body of any state or political subdivision
thereof.
• The governing or ratemaking body of an electric
cooperative.
Special rule for interconnection property. In the
case of expenses paid or incurred for interconnection
property, amounts otherwise chargeable to a capital
account with respect to such expenses will be reduced
under rules similar to the rules of section 50(c). The
special rule in section 50(c)(3)(A), which provides for a
20

Energy project. For purposes of the increased credit
amount described in Part I, lines 7 and 8; the domestic
content bonus credit amount described in Part I, line 9;
and the increase in credit rate for energy communities
described in Part I, line 10; the term energy project means
one or more energy properties (multiple energy
properties) that are operated as part of a single energy
project. Multiple energy properties will be treated as one
energy project if they are owned by a taxpayer (subject to
the related taxpayer rule in Regulations section 1.48-13(d)
(2)) and any four or more of the following factors are
present.
• The energy properties are constructed on contiguous
pieces of land.
• The energy properties are described in a common
power purchase, thermal energy, or other off-take
agreement or agreements.
• The energy properties have a common intertie.
• The energy properties share a common substation, or
thermal energy off-take point.
• The energy properties are described in one or more
common environmental or other regulatory permits.
• The energy properties are constructed pursuant to a
single master construction contract.
• The construction of the energy properties is financed
pursuant to the same loan agreement.
Separate reporting for energy properties within an
energy project. While multiple energy properties may be
treated as a single energy project for specified purposes,
this information must be reported separately for each
energy property within an energy project. The form must
be timely filed (including extensions) for the tax year in
which the energy property is placed in service. See
Regulations section 1.48-13(d) for more information.

Section A—Geothermal Energy Credit
Geothermal energy. Geothermal energy property is
used 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 1b
For qualifying geothermal energy property placed in
service during the tax year, the applicable percentage is
determined by the beginning of construction date and if
the prevailing wage and apprenticeship requirements are
met. See Part I, lines 7 and 8, Filers Completing Part V or
VI, earlier. Use the table below to determine your
applicable percentage and enter it on line 1b.
See Increased Credit Amount Statement, earlier, for
more information.

Instructions for Form 3468 (2025)

DRAFT

DRAFT

See Regulations section 1.48-14(h) for more
information.

basis reduction of 50% in the case of any energy credit,
applies to qualified interconnection property the costs of
which are included for purposes of the section 48 credit.

TREASURY/IRS AND OMB USE ONLY DRAFT
Beginning of
construction

Before
2025

From
After
01/01/25 to 06/15/25 06/15/25

Meets prevailing
wage and
apprenticeship
requirements

30%

10%

0%

Does not meet
prevailing wage and
apprenticeship
requirements

6%

2%

0%

Line 1d
Enter your applicable domestic content bonus credit
percentage. See Domestic Content Certification
Statement, earlier, for more information.
If the energy project did not meet the requirements for
the domestic content bonus credit, leave line 1d blank,
skip line 1e, and go to line 1f.

Enter your applicable energy community bonus credit
percentage. See Energy community bonus credit rate,
earlier, for more information.
If the energy project was not placed in service within an
energy community, leave line 1f blank, skip line 1g, and go
to line 2.

Section B—Solar Energy Credit
Solar energy. Solar energy property is property that has
the following.
1. Equipment that uses solar energy to illuminate the
inside of a structure using fiber-optic-distributed
sunlight.
2. Electrochromic glass that uses electricity to change
its light transmittance properties in order to heat or
cool a structure.
3. Equipment that uses solar energy to:
a. Generate electricity,
b. Heat or cool (or provide hot water for use in) a
structure, or
c. Provide solar process heat (but not to heat a
swimming pool).
Caution: For solar energy property described in 1 and 2
above, filers may be able to claim these credits for
qualified property where construction began before 2025.
These credits cannot be claimed for qualified property
whose construction began after 2024.

Line 3b
For qualifying solar energy property (described in Solar
energy 1 or 2 above) placed in service during the tax year
where construction begins before 2025, the applicable
percentage is determined by meeting the prevailing wage
Instructions for Form 3468 (2025)

Beginning of
construction

Before
2025

After
2024

Meets prevailing wage
and apprenticeship
requirements

30%

0%

Does not meet
prevailing wage and
apprenticeship
requirements

6%

0%

For qualifying solar energy property (described in Solar
energy 3 above) placed in service during the tax year, the
applicable percentage is determined by the beginning of
construction date and if the prevailing wage and
apprenticeship requirements are met. See Part I, lines 7
and 8, Filers Completing Part V or VI, earlier. Use the table
below to determine your applicable percentage and enter
it on line 3b.
Beginning of
construction

Before
2025

From
01/01/25 to 06/15/25

After
06/15/25

Meets prevailing
wage and
apprenticeship
requirements

30%

10%

0%

Does not meet
prevailing wage and
apprenticeship
requirements

6%

2%

0%

Tip: See Increased Credit Amount Statement, earlier, for
more information about the required statement.

Line 3d
Enter your applicable low-income communities bonus
credit percentage in connection with your solar energy
facility. See Low-income communities bonus credit
amount, earlier, for more information.
However, you don’t qualify for the low-income
communities bonus credit if either of the following apply.
1. You checked the box in Part I, line 11g; or
2. Part I, line 12a(ii), is 5 MW ac or more (in relation to
Part I, line 11a, 11b, 11c, or 11d).
In the case where either 1 or 2 above apply, enter -0- on
lines 3d and 3j, and go to line 3k.

Line 3k
Enter the applicable domestic content bonus credit
percentage. See Domestic Content Certification
Statement, earlier, for more information.

21

DRAFT

DRAFT

Line 1f

and apprenticeship requirements. See Part I, lines 7 and
8, Filers Completing Part V or VI, earlier. Use the table
below to determine your applicable percentage and enter
it on line 3b.

TREASURY/IRS AND OMB USE ONLY DRAFT
If the energy project did not meet the requirements for
the domestic content bonus credit, leave line 3k blank,
skip line 3l, and go to line 3m.

or to the extent of basis attributable to construction,
reconstruction, or erection by the taxpayer after October
3, 2008.

Line 3m

Line 5g

Enter the applicable energy community bonus credit
percentage. See Energy community bonus credit rate,
earlier, for more information.

Enter your applicable energy percentage. See Increased
Credit Amount Statement, earlier, for more information.

If the energy project was not placed in service within an
energy community, leave line 3m blank, skip line 3n, and
go to line 4.
Qualified fuel cell property. Qualified fuel cell property
is a fuel cell power plant that has a nameplate capacity of
at least 0.5 kilowatts (1 kilowatt in the case of a fuel cell
plant with a linear generator assembly) of electricity using
an electrochemical or electromechanical process and has
electricity-only generation efficiency greater than 30%.
See section 48(c)(1) for further details.
Fuel cell power plant. Fuel cell power plant means an
integrated system comprised of a fuel cell stack assembly
or linear generator assembly, and associated balance of
plant components that converts a fuel into electricity using
electrochemical or electromechanical means.
Linear generator assembly. Linear generator
assembly doesn’t include any assembly that contains
rotating parts.

Line 5a
Enter the basis, attributable to periods after 2005 and
before October 4, 2008, of any qualified fuel cell property
placed in service during the tax year, if the property was
acquired after 2005 and before October 4, 2008, or to the
extent of basis attributable to construction, reconstruction,
or erection by the taxpayer after 2005 and before October
4, 2008.

Line 5c
Enter the applicable number of kilowatts of capacity
attributable to the basis on line 5a. This entry must be a
whole number.

Line 5f
Enter the basis, attributable to periods after October 3,
2008, and the construction of which began before 2021 or
after 2022, of any qualified fuel cell property placed in
service during the tax year.

Enter your applicable domestic content bonus credit
percentage. See Domestic Content Certification
Statement, earlier, for more information.
If the energy project did not meet the requirements for
the domestic content bonus credit, leave line 5i blank, skip
line 5j, and go to line 5l.

Line 5l
Enter the applicable energy community bonus credit
percentage. See Energy community bonus credit rate,
earlier, for more information.
If the energy project was not placed in service within an
energy community, leave line 5l blank, skip line 5m, and
go to line 5n.

Line 5o
Enter the applicable number of kilowatts of capacity
attributable to the basis on line 5f. This entry must be a
whole number.

Section D—Qualified Microturbine Property
Qualified microturbine property. Qualified microturbine
property is a stationary microturbine power plant that has
a nameplate capacity of less than 2,000 kilowatts and has
an electricity-only generation efficiency of not less than
26% at International Standard Organization conditions.
See section 48(c)(2) for further details.
Stationary microturbine power plant. Stationary
microturbine power plant means an integrated system
comprised of a gas turbine engine, a combustor, a
recuperator or regenerator, a generator or alternator, and
associated balance of plant components that converts a
fuel into electricity and thermal energy. It also includes all
secondary components located between the existing
infrastructure for fuel delivery and the existing
infrastructure for power distribution, including equipment
and controls for meeting relevant power standards, such
as voltage, frequency, and power factors.

Caution: Filers may be able to claim these credits for
qualified property where construction began before 2025.
These credits cannot be claimed for qualified property
whose construction began after 2024.
See Qualified fuel cell property and Beginning of
construction, earlier.

Caution: Filers may be able to claim these credits for
qualified property where construction began before 2025.
These credits cannot be claimed for qualified property
whose construction began after 2024.

Caution: Basis is attributable to periods after October 3,
2008, if the property was acquired after October 3, 2008,

Enter the basis, attributable to periods after 2005, of any
qualified microturbine property placed in service during

22

Line 7a

Instructions for Form 3468 (2025)

DRAFT

DRAFT

Section C—Qualified Fuel Cell Property

Line 5i

TREASURY/IRS AND OMB USE ONLY DRAFT
the tax year, if the property was acquired after 2005, or to
the extent of basis attributable to construction,
reconstruction, or erection by the taxpayer after 2005.

Line 7b
Enter your applicable energy percentage. See Increased
Credit Amount Statement, earlier, for more information.

Line 7d
Enter your applicable domestic content bonus credit
percentage. See Domestic Content Certification
Statement, earlier, for more information.
If the energy project did not meet the requirements for
the domestic content bonus credit, leave line 7d blank,
skip line 7e, and go to line 7g.

Line 7g

If the energy project was not placed in service within an
energy community, leave line 7g blank, skip line 7h, and
go to line 7i.

Line 7j
Enter the applicable number of kilowatts of capacity
attributable to the basis on line 7a. This entry must be a
whole number.

Section E—Combined Heat and Power System
Property
Combined heat and power system property.
Combined heat and power system property means
property comprising a system that:
1. Uses the same energy source for the simultaneous or
sequential generation of electrical power, mechanical
shaft power, or both; in combination with the
generation of steam or other forms of useful thermal
energy (including heating and cooling applications);
and
2. Has an energy efficiency percentage determined on a
British thermal unit (BTU) basis over 60% and it
produces:
a. At least 20% (determined on a BTU basis) of its
total useful energy in the form of thermal energy
that isn’t used to produce electrical and/or
mechanical power, and
b. At least 20% (determined on a BTU basis) of its
total useful energy in the form of electrical and/or
mechanical power.
For details, see section 48(c)(3).
Caution: Taxpayers cannot take a credit for both
combined heat and power system property and waste
energy recovery property for the same property. Taxpayers
Instructions for Form 3468 (2025)

Limitation. In the case of combined heat and power
system property with an electrical capacity in excess of
the applicable capacity placed in service during the tax
year, the credit for that year shall be equal to the amount
that bears the same ratio to the credit as the applicable
capacity bears to the capacity of such property.
Applicable capacity. Applicable capacity means the
following.
• 15 MW.
• A mechanical energy capacity of more than 20,000
horsepower.
• An equivalent combination of electrical and
mechanical energy capacities.
Maximum capacity. Combined heat and power
system property shall not include any property comprising
a system if the system has:
• A capacity of more than 50 MW,
• A mechanical energy capacity of more than 67,000
horsepower, or
• An equivalent combination of electrical and
mechanical energy capacities.
Energy efficiency percentage. The energy efficiency
percentage of a combined heat and power system
property is the fraction of which the numerator is the total
useful electrical, thermal, and mechanical power
produced by the system at normal operating rates (and
expected to be consumed in its normal application), and
the denominator is the lower heating value of the fuel
sources for the system.
Combined heat and power system property doesn’t
include property used to transport the energy source to
the facility or to distribute energy produced by the facility.
Biomass systems. Systems designed to use biomass
for at least 90% of the energy source are eligible for a
credit that is reduced in proportion to the degree to which
the system fails to meet the efficiency standard. For more
information, see section 48(c)(3)(D).
Caution: Filers may be able to claim these credits for
qualified property where construction began before 2025.
These credits cannot be claimed for qualified property
whose construction began after 2024.

Line 9d
Enter your applicable energy percentage. See Increased
Credit Amount Statement, earlier, for more information.

Line 9f
Enter your applicable domestic content bonus credit
percentage. See Domestic Content Certification
Statement, earlier, for more information.
If the energy project did not meet the requirements for
the domestic content bonus credit, leave line 9f blank, skip
line 9g, and go to line 9h.

23

DRAFT

DRAFT

Enter the applicable energy community bonus credit
percentage. See Energy community bonus credit rate,
earlier, for more information.

must elect not to treat such property as combined heat
and power system property for section 48 purposes.

Line 9h

Line 11n

Enter the applicable energy community bonus credit
percentage. See Energy community bonus credit rate,
earlier, for more information.

Enter your applicable domestic content bonus credit
percentage. See Domestic Content Certification
Statement, earlier, for more information.

If the energy project was not placed in service within an
energy community, leave line 9h blank, skip line 9i, and go
to line 10.

If the energy project did not meet the requirements for
the domestic content bonus credit, leave line 11n blank,
skip line 11o, and go to line 11p.

Section F—Qualified Small Wind Energy
Property

Line 11p

Qualified small wind energy property. Qualified small
wind energy property means property that uses a
qualifying small wind turbine to generate electricity. For
this purpose, a qualifying small wind turbine means a wind
turbine that has a nameplate capacity of not more than
100 kilowatts. For details, see section 48(c)(4). In addition,
for small wind energy property acquired (or placed in
service in the case of property constructed, reconstructed,
or erected) after February 2, 2015, see Notice 2015-4,
2015-5 I.R.B. 407 (available at IRS.gov/irb/
2015-05_IRB#NOT-2015-4), as modified by Notice
2015-51, 2015-31 I.R.B. 133 (available at IRS.gov/irb/
2015-31_IRB#NOT-2015-51), and Regulations section
1.48-9(c)(2)(ii)(A), for performance and quality standards
that small wind energy property must meet to qualify for
the energy credit.
Caution: Filers may be able to claim these credits for
qualified property where construction began before 2025.
These credits cannot be claimed for qualified property
whose construction began after 2024.

Line 11d
Enter the basis of any qualified small wind energy property
placed in service during the tax year, if the property was
acquired by the taxpayer or the basis is attributable to
construction, reconstruction, or erection by the taxpayer.
See Beginning of construction, earlier.

Line 11e
Enter your applicable energy percentage. See Increased
Credit Amount Statement, earlier, for more information.

Line 11g
Enter your applicable low-income communities bonus
credit percentage in connection with your small wind
energy facility. See Low-income communities bonus credit
amount, earlier, for more information.
However, you don’t qualify for the low-income
communities bonus credit if either of the following apply.
1. You checked the box in Part I, line 11g; or

Enter the applicable energy community bonus credit
percentage. See Energy community bonus credit rate,
earlier, for more information.
If the energy project was not placed in service within an
energy community, leave line 11p blank, skip line 11q, and
go to line 12.

Section G—Waste Energy Recovery Property
Waste energy recovery property. Qualified waste
energy recovery property means property that generates
electricity solely from heat from buildings or equipment if
the primary purpose of such building or equipment is not
the generation of electricity. The term “waste energy
recovery property” shall not include any property that has
a capacity in excess of 50 MW. For details, see section
48(c)(5).
Caution: Taxpayers cannot take a credit for both
combined heat and power system property and waste
energy recovery property for the same property. Taxpayers
must elect not to treat such property as combined heat
and power system property for section 48 purposes.
Note: The transitional rules of section 48(m) (as in effect
on November 4, 1990) apply to waste energy recovery
property for periods after 2020.
Caution: Filers may be able to claim these credits for
qualified property where construction began before 2025.
These credits cannot be claimed for qualified property
whose construction began after 2024.

Line 13b
Enter your applicable energy percentage. See Increased
Credit Amount Statement, earlier, for more information.

Line 13d
Enter your applicable domestic content bonus credit
percentage. See Domestic Content Certification
Statement, earlier, for more information.
If the energy project did not meet the requirements for
the domestic content bonus credit, leave line 13d blank,
skip line 13e, and go to line 13f.

2. Part I, line 12b, is 5 MW ac or more (in relation to Part
I, line 11a, 11b, 11c, or 11d).
In the case where either 1 or 2 above apply, enter -0- on
lines 11g and 11m, and go to line 11n.
24

Instructions for Form 3468 (2025)

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TREASURY/IRS AND OMB USE ONLY DRAFT
Line 13f
Enter the applicable energy community bonus credit
percentage. See Energy community bonus credit rate,
earlier, for more information.
If the energy project was not placed in service within an
energy community, leave line 13f blank, skip line 13g, and
go to line 14.

Section H—Geothermal Heat Pump Systems
Geothermal heat pump systems. Geothermal heat
pump systems constitute equipment that uses the ground
or ground water as a thermal energy source to heat a
structure or as a thermal energy sink to cool a structure.
For details, see section 48(a)(3)(A)(vii).

Line 15b
Enter your applicable energy percentage. See Increased
Credit Amount Statement, earlier, for more information.

Enter your applicable domestic content bonus credit
percentage. See Domestic Content Certification
Statement, earlier, for more information.
If the energy project did not meet the requirements for
the domestic content bonus credit, leave line 15d blank,
skip line 15e, and go to line 15f.

Line 15f
Enter the applicable energy community bonus credit
percentage. See Energy community bonus credit rate,
earlier, for more information.
If the energy project was not placed in service within an
energy community, leave line 15f blank, skip line 15g, and
go to line 16.

Section I—Energy Storage Technology Property
Energy storage technology. Energy storage technology
is:
• Property (other than property primarily used in the
transportation of goods or individuals and not for the
production of electricity) that receives, stores, and
delivers energy for conversion to electricity (or, in the
case of hydrogen, stores energy), and has a
nameplate capacity of not less than 5 kilowatt hours;
and
• Thermal energy storage property.

Modifications of certain property. In the case of any
energy storage technology property described above that
was either (1) placed in service before August 16, 2022,
and that has a capacity of less than 5 kilowatt hours and is
modified to where the property has a nameplate capacity
of at least 5 kilowatt hours; or (2) is modified in a manner
that increases the nameplate capacity to at least 5 kilowatt
hours, the modified property will be treated as energy
storage technology property, except for the treatment of
the basis of the existing property prior to the modification.

Instructions for Form 3468 (2025)

•
•
•
•

Thermal energy storage property doesn’t include:
A swimming pool,
Combined heat and power system property,
A building or its structural components, or
Property that transforms other forms of energy into
heat in the first instance. See Regulations section
1.48-9(e)(10)(iii).

Caution: Filers may be able to claim these credits for
qualified property where construction began before 2025.
These credits cannot be claimed for qualified property
whose construction began after 2024.

Line 17a
Enter the basis of any energy storage technology property
placed in service during the tax year, to the extent of basis
attributable to construction, reconstruction, or erection by
the taxpayer.

Line 17b
Enter your applicable energy percentage. See Increased
Credit Amount Statement, earlier, for more information.

Line 17d
Enter your applicable low-income communities bonus
credit percentage in connection with your solar or wind
energy facility. See Low-income communities bonus credit
amount, earlier, for more information.
However, you don’t qualify for the low-income
communities bonus credit if either of the following apply.
1. You checked the box in Part I, line 11g.
2. Part I, line 12a(ii) or 12b, is 5MW ac or more (in
relation to Part I, line 11a, 11b, 11c, or 11d).
In the case where either 1 or 2 above applies, enter -0on lines 17d and 17j, and go to line 17k.

Line 17k
Enter your applicable domestic content bonus credit
percentage. See Domestic Content Certification
Statement, earlier, for more information.
If the energy project did not meet the requirements for
the domestic content bonus credit, leave line 17k blank,
skip line 17l, and go to line 17m.

25

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Line 15d

Thermal energy storage property. Thermal energy
storage property is property comprising a system that:
• Is directly connected to a heating, ventilation, or air
conditioning system;
• Removes heat from, or adds heat to, a storage
medium for subsequent use; and
• Provides energy for the heating or cooling of the
interior of a residential or commercial building.

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Line 17m

Section K—Microgrid Controllers Property

Enter the applicable energy community bonus credit
percentage. See Energy community bonus credit rate,
earlier, for more information.

Microgrid controller. Microgrid controller means
equipment that is:
• Part of a qualified microgrid, and
• Designed and used to monitor and control the energy
resources and loads on such microgrid.

If the energy project was not placed in service within an
energy community, leave line 17m blank, skip line 17n,
and go to line 18.

Section J—Qualified Biogas Property
Qualified biogas property. Qualified biogas property is
property comprising a system that:
1. Converts biomass (as defined in section 45K(c)(3), as
in effect on August 16, 2022), into a gas that:
a. Consists of not less than 52% methane by volume,
or
b. Is concentrated by such system into a gas that
consists of not less than 52% methane, and

Qualified biogas property includes any property,
described above, that is part of a system that cleans or
conditions gas.
Caution: Filers may be able to claim these credits for
qualified property where construction began before 2025.
These credits cannot be claimed for qualified property
whose construction began after 2024.

Line 19a
Enter the basis of any qualified biogas energy property
placed in service during the tax year, to the extent of basis
attributable to construction, reconstruction, or erection by
the taxpayer.

Line 19b
Enter your applicable energy percentage. See Increased
Credit Amount Statement, earlier, for more information.

1. Includes equipment that is capable of generating not
less than 4 kilowatts and not more than 20 MW of
electricity;
2. Is capable of operating:
a. In connection with the electrical grid and as a
single controllable entity with respect to such grid,
b. Independently (and disconnected) from such grid,
and
3. Is not part of a bulk-power system (as defined in
section 215 of the Federal Power Act (16 U.S.C.
824o)).
Caution: Filers may be able to claim these credits for
qualified property where construction began before 2025.
These credits cannot be claimed for qualified property
whose construction began after 2024.

Line 21a
Enter the basis of any qualified microgrid controller
property placed in service during the tax year, to the
extent of basis attributable to construction, reconstruction,
or erection by the taxpayer.

Line 21b
Enter your applicable energy percentage. See Increased
Credit Amount Statement, earlier, for more information.

Line 21d

Line 19d

Enter your applicable domestic content bonus credit
percentage. See Domestic Content Certification
Statement, earlier, for more information.

Enter your applicable domestic content bonus credit
percentage. See Domestic Content Certification
Statement, earlier, for more information.

If the energy project did not meet the requirements for
the domestic content bonus credit, leave line 21d blank,
skip line 21e, and go to line 21f.

If the energy project did not meet the requirements for
the domestic content bonus credit, leave line 19d blank,
skip line 19e, and go to line 19f.

Line 21f

Line 19f
Enter the applicable energy community bonus credit
percentage. See Energy community bonus credit rate,
earlier, for more information.

Enter the applicable energy community bonus credit
percentage. See Energy community bonus credit rate,
earlier, for more information.
If the energy project was not placed in service within an
energy community, leave line 21f blank, skip line 21g, and
go to line 22.

If the energy project was not placed in service within an
energy community, leave line 19f blank, skip line 19g, and
go to line 20.
26

Instructions for Form 3468 (2025)

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2. Captures such gas for sale or productive use, and not
for disposal by means of combustion.

Qualified microgrid. A qualified microgrid is an electrical
system that:

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Section L—Qualified Investment Credit Facility
Property
Qualified investment credit facility property. Qualified
investment credit facility property is property:
• That is tangible personal property or other tangible
property (not including a building or its structural
components), but only if the property is used as an
integral part of the qualified investment credit facility;
• That is constructed, reconstructed, erected, or
acquired by the taxpayer;
• With respect to which depreciation or amortization is
allowable; and
• For which the original use begins with the taxpayer.

Note: The transitional rules of section 48(m) (as in effect
on November 4, 1990) apply to offshore wind facilities for
periods after 2016. Under the transitional rules of section
48(m) (as in effect on November 4, 1990), the phaseout of
the section 48 credit provided for other types of qualified
investment credit facilities under section 48(a)(5)(E) does
not apply to qualified offshore wind facilities.
Qualified investment credit facility. A qualified
investment credit facility is a facility that:
1. Is one of the following qualified facilities that is placed
in service after 2008 and on which construction began
before 2025. These credits cannot be claimed for
qualified property whose construction began after
2024. See Beginning of construction, earlier.
a. Wind facility under section 45(d)(1).
b. Closed-loop biomass facility under section 45(d)
(2).
c. Open-loop biomass facility under section 45(d)(3).
d. Geothermal or solar energy facility under section
45(d)(4).
e. Landfill gas facility under section 45(d)(6).
f. Trash facility under section 45(d)(7).
g. Qualified hydropower facility under section 45(d)
(9).
h. Marine and hydrokinetic renewable energy facility
under section 45(d)(11).
i. Qualified offshore wind facility. See Notice 2021-5,
2021-03 I.R.B. 479, available at IRS.gov/irb/
2021-03_IRB#NOT-2021-5, for more information
on beginning of construction requirements applied
to offshore and federal land projects.
2. No credit has been allowed under section 45 for that
facility (see Note below); and
3. An irrevocable election was made to treat the facility
as energy property.
Note: If a taxpayer retrofits an energy property that
previously received a credit under section 45 by meeting
the 80/20 Rule provided in section 7.05 of Notice 2018-59,
2018-28 I.R.B. 196, available at IRS.gov/irb/
2018-28_IRB#NOT-2018-59, the taxpayer may claim an
investment tax credit based on its investment. However, if
Instructions for Form 3468 (2025)

Section 48(a)(5) Election Statement
If you are electing to treat a qualified investment credit
facility as energy property, you must attach an election
statement to Form 3468 for each qualified facility. The
election statement must include the following information.
1. Your name and taxpayer identification number shown
on the return.
2. For each qualified facility, include the following:
a. The facility description (including the owner
information, if different from the filer, in Part I,
line 3b(i) and 3b(ii)) and the IRS-issued
registration number (if applicable) of the qualified
facility from Part I, line 1,
b. An accounting of your basis in the energy
property, and
c. A depreciation schedule reflecting your remaining
basis in the energy property after the energy credit
is claimed.
3. A statement that you haven’t and won’t claim a
section 1603 grant for new investment in the property
for which you are claiming the energy credit.
4. A declaration, applicable to the statement and any
accompanying documents, signed by you, or signed
by a person currently authorized to bind you in such
matters that states the following: “Under penalties of
perjury, I declare that I have examined this statement,
including accompanying documents, and to the best
of my knowledge and belief, the facts presented in
support of this statement are true, correct, and
complete.”
Caution: Filers may be able to claim these credits for
qualified property where construction began before 2025.
These credits cannot be claimed for qualified property
whose construction began after 2024.

Line 23b
Enter your applicable energy percentage. See Increased
Credit Amount Statement, earlier, for more information.

Line 23d
Enter your applicable low-income communities bonus
credit percentage in connection with your wind energy
facility. See Low-income communities bonus credit
amount, earlier, for more information.
However, you don’t qualify for the low-income
communities bonus credit if either of the following applies.
27

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See section 48(a)(5) for details.

the energy property is within the recapture period for the
section 45 credit, the taxpayer may have to recapture all or
part of such section 45 credit accordingly.
Qualified offshore wind facility. For purposes of
section 48(a)(5), qualified offshore wind facility means a
qualified facility (within the meaning of section 45(d)(1))
that is located in the inland navigable waters of the United
States or in the coastal waters of the United States.

TREASURY/IRS AND OMB USE ONLY DRAFT
1. You checked the box in Part I, line 11g; or
2. Part I, line 12b, is 5MW ac or more (in relation to Part
I, line 11a, 11b, 11c, or 11d).
In the case where either 1 or 2 above applies, enter -0on lines 23d and 23j, and go to line 23k.

Line 23e
Enter the amount of capacity limitation you were allocated
in the allocation letter.
Note: The capacity limitation allocated for solar property
is reported in direct current (dc). The capacity limitation
allocated for wind property may be reported in either
alternating current (ac) or dc.

Line 23k

If the energy project did not meet the requirements for
the domestic content bonus credit, leave line 23k blank,
skip line 23l, and go to line 23m.

Line 23m
Enter the applicable energy community bonus credit
percentage. See Energy community bonus credit rate,
earlier, for more information.
If the energy project was not placed in service within an
energy community, leave line 23m blank, skip line 23n,
and go to line 24.

Section M—Clean Hydrogen Production
Facilities as Energy Property
Election to treat clean hydrogen production facilities
as energy property. In the case of any qualified property
(as defined in section 48(a)(5)(D)) that is part of a
specified clean hydrogen production facility, such property
will be treated as energy property for purposes of this
section, and the energy percentage with respect to such
property is as follows.
• 1.2% in the case of a facility that is designed and
reasonably expected to produce qualified clean
hydrogen that is described in section 45V(b)(2)(A).
• 1.5% in the case of a facility that is designed and
reasonably expected to produce qualified clean
hydrogen that is described in section 45V(b)(2)(B).
• 2% in the case of a facility that is designed and
reasonably expected to produce qualified clean
hydrogen that is described in section 45V(b)(2)(C).
• 6% in the case of a facility that is designed and
reasonably expected to produce qualified clean
hydrogen that is described in section 45V(b)(2)(D).
Denial of production credit. No credit will be allowed
under section 45V or section 45Q for any tax year with
respect to any specified clean hydrogen production facility
or any carbon capture equipment included at such facility.
28

Qualified clean hydrogen. Qualified clean hydrogen
means hydrogen that is produced through a process that
results in a lifecycle greenhouse gas emissions rate of not
greater than 4 kilograms of CO2e per kilogram of
hydrogen.
Qualified clean hydrogen also requires the following.
• Hydrogen is produced in the United States (as defined
in section 638(1)) or a territory of the United States (as
defined in section 638(2)).
• Hydrogen is produced in the ordinary course of a
trade or business of the taxpayer.
• Hydrogen is produced for sale or use.
• The production and sale or use of such hydrogen is
verified by an unrelated party.

Section 48(a)(15) Election Statement
If you are electing to treat qualified property that is part of
a specified clean hydrogen production facility as energy
property, you must attach a statement to Form 3468 for
each qualified facility. The election statement must include
the following information.
1. Your name and taxpayer identification number shown
on the return.
2. For each qualified facility, include the following:
a. The facility description (including the owner
information, if different from the filer from Part I,
line 3b(i) and 3b(ii)) and the IRS-issued
registration number (if applicable) of the qualified
facility from Part I, line 1.
b. The lifecycle greenhouse gas (GHG) emission
rate from Part I, line 2a(i) of the facility for the tax
year.
c. A copy of the required verification report and if you
are petitioning for a provisional emissions rate, a
copy of the documentation obtained from the
Department of Energy providing an emissions
value.
3. An attestation that the facility produced hydrogen
through a process that results in a lifecycle GHG
Instructions for Form 3468 (2025)

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Enter your applicable domestic content bonus credit
percentage. See Domestic Content Certification
Statement, earlier, for more information.

Specified clean hydrogen production facility.
Specified clean hydrogen production facility means any
qualified clean hydrogen production facility that meets the
following.
• Owned by the taxpayer.
• Produces qualified clean hydrogen.
• Construction begins before 2028.
• Is placed in service after 2022.
• No credit has been allowed under section 45V or 45Q.
• The taxpayer makes an irrevocable election to treat
clean hydrogen production facility as energy property
under section 48(a)(15).
• An unrelated third party has verified (in such form or
manner as the Secretary may prescribe) that such
facility produces hydrogen through a process that
results in lifecycle greenhouse gas emissions that are
consistent with the hydrogen that the facility was
designed and expected to produce as specified in the
Section 48(a)(15) Election Statement, described
below.

TREASURY/IRS AND OMB USE ONLY DRAFT
emissions rate that is consistent with, or lower than,
the lifecycle GHG emissions rate of the hydrogen that
such facility was designed and expected to produce.
4. A statement that you haven’t claimed and aren’t
claiming a section 45V or 45Q credit for the facility for
which you are claiming the energy credit.
5. A statement (if applicable) that you are making an
irrevocable election to determine the lifecycle GHG
emissions rate of your facility’s hydrogen production
pathway using one of the following versions of
45VH2-GREET:
a. The latest version of 45VH2-GREET that was
available on the date when construction of your
facility began, which you will use for the current tax
year and all remaining tax years in the recapture
period.

c. The first version of 45VH2-GREET that includes
your facility’s hydrogen production pathway, which
you will use for the first tax year that your pathway
becomes included in 45VH2-GREET and all
remaining tax years in the recapture period.
For information on identifying which version of
45VH2-GREET you may elect to use, see section
48(a)(15), Department of Energy, Clean Hydrogen
Production Tax Credit (45V) Resources, available at
www.energy.gov/articles/clean-hydrogen-productiontax-credit-45v-resources, and Department of Energy,
45V Emissions Value Request, available at
www.energy.gov/eere/45v-emissions-value-request.
6. A declaration, applicable to the statement and any
accompanying documents, signed by you, or signed
by a person currently authorized to bind you in such
matters that states the following: “Under penalties of
perjury, I declare that I have examined this statement,
including accompanying documents, and to the best
of my knowledge and belief, the facts presented in
support of this statement are true, correct, and
complete.”

Line 25a
Enter the basis of property placed in service during the tax
year for the facility that is designed and reasonably
expected to produce, through a process, qualified clean
hydrogen that results in a lifecycle greenhouse gas
emission rate no greater than 4 kilograms of CO2e per
kilogram of hydrogen and not less than 2.5 kilograms as
described in section 45V(b)(2)(A).

Line 25b
Enter your applicable energy percentage. See Increased
Credit Amount Statement, earlier, for more information.

Instructions for Form 3468 (2025)

Enter the basis of property placed in service during the tax
year for the facility that is designed and reasonably
expected to produce, through a process, qualified clean
hydrogen that results in a lifecycle greenhouse gas
emission rate less than 2.5 kilograms of CO2e per
kilogram of hydrogen and not less than 1.5 kilograms as
described in section 45V(b)(2)(B).

Line 25e
Enter your applicable energy percentage. See Increased
Credit Amount Statement, earlier, for more information.

Line 25g
Enter the basis of property placed in service during the tax
year for the facility that is designed and reasonably
expected to produce, through a process, qualified clean
hydrogen that results in a lifecycle greenhouse gas
emission rate less than 1.5 kilograms of CO2e per
kilogram of hydrogen and not less than 0.45 kilograms as
described in section 45V(b)(2)(C).

Line 25h
Enter your applicable energy percentage. See Increased
Credit Amount Statement, earlier, for more information.

Line 25j
Enter the basis of property placed in service during the tax
year for the facility that is designed and reasonably
expected to produce, through a process, qualified clean
hydrogen that results in a lifecycle greenhouse gas
emission rate less than 0.45 kilograms of CO2e per
kilogram of hydrogen as described in section 45V(b)(2)
(D).

Line 25k
Enter your applicable energy percentage. See Increased
Credit Amount Statement, earlier, for more information.

Section N—Totals and Credit Reduction for
Tax-Exempt Bonds
Line 28
If proceeds of tax-exempt bonds were used to finance
your facility, continue to line 28a. If proceeds of
tax-exempt bonds were not used to finance your facility,
skip lines 28a through 28e, and go to line 29.
Credit reduced for tax-exempt bonds. The amount of
the credit with respect to any facility for any tax year will be
reduced by the amount that is the product of the amount
of the credit determined without the reduction of
tax-exempt bonds for such year and the lesser of one of
the following.
• 15%.
• A fraction. The numerator is the sum for the tax year
and all prior tax years of proceeds of an issue of any
29

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b. The first version of 45VH2-GREET (that is, the
version of 45VH2-GREET that was released in
December 2023), which you will use for the
current tax year and all remaining tax years in the
recapture period.

Line 25d

TREASURY/IRS AND OMB USE ONLY DRAFT
obligations the interest on which is exempt from tax
under section 103 and that is used to provide
financing for the qualified facility, as of the close of the
tax year. The denominator is the aggregate amount of
additions to the capital account for the qualified facility
for the tax year and all prior tax years, as of the close
of the tax year.
Note: The credit reduction for tax-exempt bonds, lines
28a through 28e, applies to construction, reconstruction,
or erection of an energy property that began after August
16, 2022.

Elective payment phaseout for applicable entities. If
you are making an elective payment election for a facility
whose construction began in calendar year 2024, and the
facility does not satisfy the rules of section 48(a)(12)(B),
does not have a maximum net output of less than 1 MW
(as measured in alternating current), or meet an exception
under section 45(b)(10)(D), multiply line 29 by 90% (0.90).
Exception to elective payment phaseout. For
facilities whose construction began during calendar year
2024, Notice 2024-09 (extended by Notice 2024-84)
provides transitional procedures to claim the statutory
exceptions to the elective payment phaseout related to the
domestic content requirement.
To substantiate your claim of exception to the elective
payment phaseout, you must complete and attach a
statement to Form 3468. The statement must say, under
penalties of perjury, that you have reviewed the
requirements for the increased cost exception and the
non-availability exception under section 45(b)(10)(D), and
have made a good faith determination that the qualified
facility meets the requirements for the increased cost
exception and/or the non-availability exception, as
applicable. The statement must be signed by a person
with the legal authority to bind the applicable entity in
federal tax matters. For more information, see Notice
2024-09, 2024-02 I.R.B. 358, available at IRS.gov/irb/
2024-02_IRB#NOT-2024-9 and Notice 2024-84, 2024-50
I.R.B. 1229, available at IRS.gov/irb/
2024-50_IRB#NOT-2024-84.

Line 31
Patrons, including cooperatives that are patrons in other
cooperatives, enter the unused investment credit from the
energy credit allocated from cooperatives. If you are a
cooperative, see the instructions for Form 3800, Part III,
line 4a, for allocating the investment credit to your patrons.
Tip: See Cooperatives, earlier, for filing Form 3468 to
report any unused credits from cooperatives.

Line 32
Partnership or S corporation. If you are a partnership
or S corporation electing to transfer the energy credit with
respect to a facility or property (or portion thereof) under
section 6418(c), you must report the total credit amount
with respect to your facility on line 32 and Form 3800, Part
III, line 4a.
30

You are allowed a credit for qualified rehabilitation
expenditures made for any qualified rehabilitated building.
You must reduce your basis by the amount of the credit
determined for the tax year. See Regulations section
1.47-7.
If the adjusted basis of the building is determined in
whole or in part by reference to the adjusted basis of a
person other than the taxpayer, see Regulations section
1.48-12(b)(2)(viii) for additional information that must be
attached.
Qualified rehabilitated building. To be a qualified
rehabilitated building, your building must meet all of the
following requirements.
1. The building must be a certified historic
structure. A certified historic structure is any building:
a. Listed in the National Register of Historic Places,
or
b. Located in a registered historic district (as defined
in section 47(c)(3)(B)) and certified by the
Secretary of the Interior as being of historic
significance to the district.
Certification requests are made through your State
Historic Preservation Officer on National Park Service
(NPS) Form 10-168, Historic Preservation
Certification Application. The request for certification
should be made prior to physical work beginning on
the building.
2. The building must be substantially rehabilitated.
A building is considered substantially rehabilitated if
your qualified rehabilitation expenditures during a
self-selected 24-month period 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.”
3. Depreciation must be allowable with respect to
the building. Depreciation isn’t allowable if the
building is permanently retired from service. If the
building is damaged, it isn’t considered permanently
retired from service where the taxpayer repairs and
restores the building and returns it to actual service
within a reasonable period of time.
4. 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.
Qualified rehabilitation expenditures. To be qualified
rehabilitation expenditures, your expenditures must meet
all of the following requirements.
Instructions for Form 3468 (2025)

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Line 30

Part VII—Rehabilitation Credit Under
Section 47

TREASURY/IRS AND OMB USE ONLY DRAFT
1. The expenditures must be for:
a. Nonresidential real 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
12.5 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 can’t include the costs of acquiring
or enlarging any building.

6. The expenditures can’t include any costs allocable to
the part of the property that is (or may reasonably be
expected to be) tax-exempt use property (as defined
in section 168(h) except that “50%” shall be
substituted for “35%” in paragraph (1)(B)(iii)). This
exclusion doesn’t apply for line 1f.

Line 1a

Check the appropriate box whether there was any
charitable conservation contribution deduction under
section 170(h) claimed for the property on which you are
claiming a credit for a certified historic structure.

Line 1b

If you checked “Yes” to line 1a, you must provide the NPS
project number. The NPS project number is assigned:
• By NPS to a certified historic structure;
• To a building on a property that has multiple buildings
which is individually listed in the National Register of
Historic Places referenced in section 170(h)(4)(C)(i);
or
• To a building that is in a historic district referenced in
section 170(h)(4)(C)(ii).

If the property is a single building individually listed in
the National Register of Historic Places, enter five zeros
(“00000”) in the NPS project number field. For more
details on the NPS project number for easements on
certified historic structures, see the Instructions for Form
8283, Noncash Charitable Contributions. For more
information on charitable conservation contribution
deduction of certified historic structures, see Pub. 526,
Charitable Contributions.

Line 1c

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
Instructions for Form 3468 (2025)

For details, see section 47(d). To make this election,
check the box on line 1c. The credit, as a percent of
expenditures paid or incurred during the tax year for any
qualified rehabilitated building, depends on the type of
structure and its location.

Line 1j

For qualified rehabilitation expenditures paid or incurred
after 2017, a 20% credit is allowed for the qualified
rehabilitation expenditures ratably over a 5-year period
beginning in the tax year that the qualified rehabilitated
building is placed in service.

Line 1k

If you’re claiming a credit for a certified historic structure
on line 1j, enter the following.
• On line 1k(i), the assigned NPS project number.If a
lessee, the lessor will provide the lessee with the NPS
project number to enter on line 1k(i).
• On line 1k(ii), the EIN of the pass-through entity if the
qualified rehabilitation expenditures are from an S
corporation, partnership, estate, or trust.
• On line 1k(iii), the date of the final certification of
completed work received from the Secretary of the
Interior.

If you have more than one property that qualifies for the
rehabilitation credit, attach a schedule showing the
certified historic structure property, NPS number, date of
final certification, and the partnership employer
identification number (EIN), if applicable.

Line 1m
Certification of completed work not received by time
of filing. If the final certification hasn’t been received by
the time the tax return is filed for a year in which the credit
is claimed, enter the date that is 30 months after the date
that the original rehabilitation credit was claimed for the
property, and attach a copy of the first page of NPS Form
10-168, 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.
Failure to receive final certification of completed
work within 30 months. If you didn’t receive final
certification of completed work prior to the date that is 30
months after the date that you filed the tax return on which
the credit was claimed, you must submit, before the last
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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.

into account for the tax year in which they were paid (or,
for a self-rehabilitated building, when capitalized) if:
• The normal rehabilitation period for the building is at
least 2 years, and
• It is reasonable to expect that the building will be a
qualified rehabilitated building when placed in service.

TREASURY/IRS AND OMB USE ONLY DRAFT
day of the 30th month, a written statement to the IRS
stating that fact. You will be asked to consent to an
agreement under section 6501(c)(4) extending the period
of assessment for any tax relating to the time for which the
credit was claimed.
See IRS.gov/FilingCertainCFRs for the most current
mailing address for submitting the written statement
required under CFR citation 1.48-12(d)(7)(ii).
Final certification of completed work. You must retain
a copy of the final certification of completed work as long
as its contents may be needed for the administration of
any provision of the Code.
Caution: If the final certification is denied by the
Department of the Interior, the credit is disallowed for any

tax year in which it was claimed, and you must file an
amended return if necessary. See Regulations section
1.48-12(d)(7)(ii) for details.

Line 2

Patrons, including cooperatives that are patrons in other
cooperatives, enter the unused investment credit from the
rehabilitation investment credit allocated from
cooperatives. If you are a cooperative, see the instructions
for Form 3800, Part III, line 4k, for allocating the
investment credit to your patrons.
Tip: See Cooperatives, earlier, for filing Form 3468 to
report any unused credits from cooperatives.

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 burden
for individual and business taxpayers filing this form is approved under OMB control number 1545-0074 and 1545-0123
and is included in the estimates shown in the instructions for their individual and business income tax return. The
estimated burden for all other taxpayers who file this form is shown below.
Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18 hr., 39 min.

Learning about the law or the form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6 hr., 21 min.

Preparing and sending the form to the IRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10 hr., 55 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.

32

Instructions for Form 3468 (2025)

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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.