Form 4255 Certain Credit Recapture, Excessive Payments, and Penalt

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4255

Form
(Rev. December 2025)
Department of the Treasury
Internal Revenue Service

Certain Credit Recapture, Excessive Payments, and Penalties
Attach to your tax return.
Go to www.irs.gov/Form4255 for instructions and the latest information.

172

Summary. Complete the rest of Form 4255 as applicable before completing this part. See instructions.
Recapture

Amounts from prior year(s) returns
(a)
Prior year(s) Credit or deduction
claimed
credit or
in prior year(s)
deduction from:
(as adjusted,
if applicable)

(b)
Gross elective
payment
election (EPE)
amount portion
of column (a)

(c)
Gross EPE
amount in
column (b)
applied against
regular tax
(section 38(c) limit)

(d)
Net EPE amount.
Subtract
column (c) from
column (b)

(e)
Non-EPE credit
(excess of
column (a) over
column (b))
that was applied
against regular tax

(f)
Carryover.
Subtract the sum
of columns (b)
and (e) from
column (a)

(g)
Recapture
percentage.
Enter “N/A” if
more than one
recapture event
on one line

(h)
Amount of
column (a)
recaptured,
including reduction
of carryover. See
instructions for
basis increase

(i)
Portion of
column (h)
reducing credit
carryover in
column (f)

1a Form 7207
b Form 3468,
Part III
c Form 7210
d Form 3468,
Part IV
e Form 7218
f Form 7213,
Part II
g Form 3468,
Part V
h Form 8936,
Part V
i Form 7211
j Form 3468,
Part VI
k Form 8835
l Form 3468,
Part II
m Form 3468,
Part VII
n Form 8908
o Form 7205
z Other line 1
amount
2a Form 8933
b Form 8911
z Other line 2
amount
3 Total
For Paperwork Reduction Act Notice, see separate instructions.

DRAFT — DO NOT FILE

DRAFT — DO NOT FILE

Attachment
Sequence No.
Identifying number

Name(s) as shown on return

Part I

OMB No. 1545-0123

Cat. No. 41488C

Form 4255 (Rev. 12-2025) Created 5/2/25

TREASURY/IRS AND OMB USE ONLY DRAFT
Page 2

Form 4255 (Rev. 12-2025)

Part I

Summary. Complete the rest of Form 4255 as applicable before completing this part. See instructions. (continued)
Recapture
(k)
Portion of
column (h)
recapturing gross
EPE amount
applied against
regular tax from
column (c)

Excessive Payments (EPs), Excessive Credit Transfers, and Penalties
(l)
Portion of
column (h)
recapturing
net EPE amount
from column (d)

(m)(1)
Section
6418(g)(2)(A)(i)
excessive credit
transfer

(m)(2)
Section
6418(g)(2)(A)(ii)
20% of
excessive credit
transfer

(m)(3)
Section
6418(g)(3)
credit transfer
recapture

(n)(1)
If you owe an EP
related to a
gross EPE
in column (b),
enter the
net EPE portion
from column (d)

(n)(2)
If you owe an EP,
enter the portion
of the EP not
in column (n)(1)
(excluding any
20% EP)

(n)(3)
If you owe an EP,
enter any 20% EP
you owe

1a Form 7207
b Form 3468,
Part III
c Form 7210
d Form 3468,
Part IV
e Form 7218
f Form 7213,
Part II
g Form 3468,
Part V
h Form 8936,
Part V
i Form 7211
j Form 3468,
Part VI
k Form 8835
l Form 3468,
Part II
m Form 3468,
Part VII
n Form 8908
o Form 7205
z Other line 1
amount
2a Form 8933
b Form 8911
z Other line 2
amount
3 Total

DRAFT — DO NOT FILE

DRAFT — DO NOT FILE

Prior year(s)
credit or
deduction from:

(j)
Portion of
column (h)
recapturing
non-EPE credit
applied against
regular tax in
column (e)

Form 4255 (Rev. 12-2025)

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Page 3

Form 4255 (Rev. 12-2025)

Part I

Summary. Complete the rest of Form 4255 as applicable before completing this part. See instructions. (continued)
Excessive Payments (EPs), Excessive Credit Transfers, and Penalties

Totals by Type
(q)
(r)
Amount that
Amount that
can be
cannot be
reduced by
reduced by
nonrefundable
nonrefundable
credits.
credits.
See instructions See instructions

(s)
Add columns (l)
and (n)(1)

(t)
Add columns
(n)(3), (o)(1),
(o)(2), (p)(1),
and (p)(2)

1a Form 7207
b Form 3468,
Part III
c Form 7210
d Form 3468,
Part IV
e Form 7218
f Form 7213,
Part II
g Form 3468,
Part V
h Form 8936,
Part V
i Form 7211
j Form 3468,
Part VI
k Form 8835
l Form 3468,
Part II
m Form 3468,
Part VII
n Form 8908
o Form 7205
z Other line 1
amount
2a Form 8933
b Form 8911
z Other line 2
amount
3 Total

DRAFT — DO NOT FILE

DRAFT — DO NOT FILE

(o)(1)
(o)(2)
(o)(3)
(p)(1)
(p)(2)
(p)(3)
Prevailing wage Prevailing wage Prevailing wage Apprenticeship Apprenticeship Apprenticeship
Prior year(s)
penalty amounts penalty amounts penalty amounts penalty amounts penalty amounts penalty amounts
credit or
related to a
related to a
not related to an
related to a
related to a
not related to an
deduction from:
net EPE
non-net EPE
EPE
net EPE
non-net EPE
EPE
amount
amount
amount
amount
amount
amount

Form 4255 (Rev. 12-2025)

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Page 4

Form 4255 (Rev. 12-2025)

Part II
Recapture Calculation
Section A—Properties
Enter the type of property and general business credit for which you are completing Sections B, C, and D. If recapturing the investment credit, also state the specific credit
(rehabilitation, energy (if energy property, also show type)), qualified advanced coal project, qualified gasification project, qualified advanced energy project, advanced
manufacturing investment property, qualified clean electricity facility, or rehabilitation property (if rehabilitation property, also show type of building).
A
B
C
D

Section B—Original Credit
Properties
A
1
2
3
4
5
6

Original rate of credit . . . . . . . . . . . . . . . . . . .
Credit base as of the end of the previous tax year (see instructions)
. . .
Net change in nonqualified nonrecourse financing during the tax year. If a
enter as a negative number . . . . . . . . . . . . . . . . .
Credit base as of the end of the current tax year. Subtract line 3 from line 2 .
Refigured credit (see instructions) . . . . . . . . . . . . . . .
Credit taken for this property on Form 3800 in prior years (see instructions) .

. . . . .
. . . . .
net decrease,
. . . . .
. . . . .
. . . . .
. . . . .

B

D

C

1
2
3
4
5
6

Section C—Recapture From Increase in Nonqualified Nonrecourse Financing (see instructions)
7
8
9

Credit subject to recapture due to a net increase in nonqualified nonrecourse financing.
Subtract line 5 from line 6. If zero or less, enter -0- . . . . . . . . . . . . . .
Unused general business credits that would have been allowed if original credit had been
figured with current-year credit base (see instructions) . . . . . . . . . . . . .
Subtract line 8 from line 7. This is the recapture tax as a result of a net increase in
nonqualified nonrecourse financing . . . . . . . . . . . . . . . . . . .

7
8
9

Section D—Recapture From Disposition of Property, Cessation of Use as Qualified Credit Property, or Certain Expansions in Connection With
Advanced Manufacturing Facilities (see instructions)
10
11
12
13
14
15
16
17
18
19
20

Date property was placed in service . . . . . . . . . . . . . . . . . . .
10
Date property ceased to be qualified credit property . . . . . . . . . . . . . .
11
Number of full years between the date on line 10 and the date on line 11 . . . . . . .
12
Unused general business credits that would have been allowed had there been no credit
from this property (see instructions) . . . . . . . . . . . . . . . . . . .
13
Subtract line 13 from line 6 . . . . . . . . . . . . . . . . . . . . . .
14
Recapture percentage (see instructions) . . . . . . . . . . . . . . . . . .
15
Multiply line 14 by the percentage on line 15 . . . . . . . . . . . . . . . .
16
IRS-issued registration number, if applicable (see instructions) . . . . . . . . . .
17
Add property columns A through D, line 9 . . . . . . . . . . . . . . . . . . . . . . . . . .
Add property columns A through D, line 16 . . . . . . . . . . . . . . . . . . . . . . . . . .
Total increase in tax. Add lines 18 and 19. Enter here and on the applicable line(s) in Part I, column (h). See instructions

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18
19
20
Form 4255 (Rev. 12-2025)

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DRAFT — DO NOT FILE

These columns relate to the properties A through D described above.

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Page 5

Form 4255 (Rev. 12-2025)

Part III

Emissions Tier Recapture for Property That is Part of a Specified Clean Hydrogen Production Facility

Note: If you have recaptured the entire credit because either you disposed of the property or the property ceased to be investment credit property, don’t complete this part.
1
2
3
4
5

7
8
9

1
2
3
4
5
6
7
8
9
Form 4255 (Rev. 12-2025)

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DRAFT — DO NOT FILE

6

Enter the emissions rate or value of the hydrogen that the facility was designed and reasonably expected to produce from Form 3468, Part I, line
2a(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the basis of property placed in service during the tax year from Form 3468, Part VI, Section M, line 25a, 25d, 25g, or 25j, that corresponds to
the emissions rate or value on line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the energy percentage used to calculate the section 48 credit during the tax year from Form 3468, Part VI, Section M, line 25b, 25e, 25h, or
25k, that corresponds to the emissions rate or value on line 1
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Multiply line 2 by line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the emissions rate of the hydrogen for the current tax year. If you didn’t obtain an annual verification report for the current tax year, enter -0and go to line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the energy percentage that corresponds with the emissions rate on line 5 that would have been used to calculate the section 48 credit. If you
didn’t obtain an annual verification report for the current tax year, enter -0- . . . . . . . . . . . . . . . . . . . . . . . .
Multiply line 6 by line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 7 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Multiply line 8 by 20% (0.20). This is the total increase in tax resulting from the emissions tier recapture event in the current tax year. Enter the
result in Part I, line 1j, column (h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .