Instructions for IRS Form 3800 - General Business Credit 2018

January 1, 2018 "Instructions For Irs Form 3800 - General Business Credit" contain the updated filing procedures for the IRS-issued Form 3800. Download your copy of the instructions by clicking the link below.

IRS Form 3800 is a tax form issued by the United States Internal Revenue Service.

ADVERTISEMENT
2018
Department of the Treasury
Internal Revenue Service
Instructions for Form 3800
General Business Credit
Carryback and
Section references are to the Internal Revenue
Figuring the carryforward if a payroll
Code unless otherwise noted.
Carryforward of
tax credit election is made. Qualified
small businesses electing to claim a
Future Developments
Unused Credit
portion of the research credit as a payroll
For the latest information about
tax credit must adjust the research credit
The carryforward may have to be
developments related to Form 3800 and
carryforward for the amount of the credit
reduced in the event of any
!
its instructions, such as legislation
elected as a payroll tax credit on Form
recapture event (change in
enacted after they were published, go to
CAUTION
6765.
ownership, change in use of property,
IRS.gov/Form3800.
The unused credit for the current year
etc.). If a section 1603 grant is received,
the carryforward must be reduced to zero.
is determined by reducing the amount on
What’s New
For further information, see Form 4255,
Part I, line 6 and Part II, line 36 by the
The Tax Cut and Jobs Act repealed the
Recapture of Investment Credit.
amount on Form 6765, line 44. If you have
corporate alternative minimum tax for tax
amounts on both Part I, line 6 and Part II,
If you can't use part or all of your
years beginning after 2017. As a result,
line 36, the reduction is made
general business credit because of the tax
corporations will enter zero (-0-) in Part II,
proportionately. No amount elected as a
liability limit (Part II, line 38, is less than the
line 14.
payroll tax credit can be used to offset the
sum of Part I, line 6, and Part II, lines 25
The Tax Cut and Jobs Act added the
current year tax liability nor can it be
and 36), carry the unused credit back 1
employer credit for paid family and
included in the carryforward or carryback
year. If the credit is for oil and gas
medical leave (Form 8994). This credit is
calculation.
production from marginal wells, the
reported in Part III, line 4j. See the
Carryforward of the energy credit and
carryback period is 5 years. To carry back
Instructions for Form 8994 for more
the renewable electricity credit. The
an unused credit, file an amended return
information.
energy credit must be recaptured in full if a
(Form 1040X, Amended U.S. Individual
General Instructions
grant is paid under Public Law 111-5,
Income Tax Return, Form 1120X,
section 1603, for investment in energy
Amended U.S. Corporation Income Tax
property that an energy credit was
Return, or other amended return) for the
Partnerships and S corporations
previously claimed or for investment in
prior tax year or an application for tentative
must always complete the source
TIP
renewable energy property that an
refund (Form 1045, Application for
credit form. All other filers whose
election was made to treat the property as
Tentative Refund, or Form 1139,
only source for a credit listed on Form
energy property. Recapture is applicable
Corporation Application for Tentative
3800, Part III, is from a partnership, S
to those amounts previously constituting
Refund). Generally, if you file an
corporation, estate, trust, or cooperative
the qualified basis for an energy credit,
application for a tentative refund, it must
can report the credit directly on Form
including progress expenditures, that are
be filed by the end of the tax year following
3800. The following exceptions apply.
also the basis for the 1603 grant.
the tax year in which the credit arose.
You are claiming the investment credit
Recapture is accomplished as follows.
No part of the unused credit for
(Form 3468) or the biodiesel and
1. Any portion of the energy credit
any year attributable to any credit
renewable diesel fuels credit (Form 8864)
TIP
related to that property that was used to
can be carried back to any tax
in Part III with box A or B checked.
offset tax in a prior tax year must be added
year before the first tax year for which that
You are an estate or trust and the
to tax in the tax year the 1603 grant is
credit was first allowable. See
Credit
source credit must be allocated to
received. Recaptured tax is calculated on
Ordering
Rule, later, to determine which
beneficiaries. For more details, see the
Form 4255.
credits are allowed first.
instructions for Form 1041, U.S. Income
2. Any carryforward of the energy
Tax Return for Estates and Trusts,
credit related to that property is reduced to
Schedule K-1, box 13.
If you have an unused credit after
zero to recapture the unused portion of the
You are a cooperative and the source
carrying it back 1 year (5 years for a credit
credit.
credit can or must be allocated to patrons.
from oil and gas production from marginal
For more details, see the instructions for
wells), carry it forward to each of the 20
See Form 4255 for any other recapture
Form 1120-C, U.S. Income Tax Return for
tax years after the year of the credit. Any
event (change in ownership or change in
Cooperative Associations, Schedule J,
qualified business credits (as defined in
use of property, etc.).
line 5c.
section 196(c)) that are unused after the
Carryforward of certain Form 6478
last tax year of the 20-year carryforward
credits. The alcohol mixture credit, the
Who Must File
period (or at the time an individual
alcohol credit, and the small ethanol
taxpayer dies or other taxpayer, such as a
You must file Form 3800 to claim any of
producer credit expired for fuels sold or
corporation or partnership, ceases to
the general business credits.
used after 2011. The unused alcohol
exist) may be taken as a deduction in the
mixture credits, alcohol credits, and small
earlier of:
ethanol producer credits (for all tax years)
The tax year following the last tax year
can't be carried to a tax year beginning
of the 20-year carryforward period, or
after 2014.
The tax year in which the individual
taxpayer dies or other taxpayer ceases to
exist.
Jan 22, 2019
Cat. No. 10622Q
2018
Department of the Treasury
Internal Revenue Service
Instructions for Form 3800
General Business Credit
Carryback and
Section references are to the Internal Revenue
Figuring the carryforward if a payroll
Code unless otherwise noted.
Carryforward of
tax credit election is made. Qualified
small businesses electing to claim a
Future Developments
Unused Credit
portion of the research credit as a payroll
For the latest information about
tax credit must adjust the research credit
The carryforward may have to be
developments related to Form 3800 and
carryforward for the amount of the credit
reduced in the event of any
!
its instructions, such as legislation
elected as a payroll tax credit on Form
recapture event (change in
enacted after they were published, go to
CAUTION
6765.
ownership, change in use of property,
IRS.gov/Form3800.
The unused credit for the current year
etc.). If a section 1603 grant is received,
the carryforward must be reduced to zero.
is determined by reducing the amount on
What’s New
For further information, see Form 4255,
Part I, line 6 and Part II, line 36 by the
The Tax Cut and Jobs Act repealed the
Recapture of Investment Credit.
amount on Form 6765, line 44. If you have
corporate alternative minimum tax for tax
amounts on both Part I, line 6 and Part II,
If you can't use part or all of your
years beginning after 2017. As a result,
line 36, the reduction is made
general business credit because of the tax
corporations will enter zero (-0-) in Part II,
proportionately. No amount elected as a
liability limit (Part II, line 38, is less than the
line 14.
payroll tax credit can be used to offset the
sum of Part I, line 6, and Part II, lines 25
The Tax Cut and Jobs Act added the
current year tax liability nor can it be
and 36), carry the unused credit back 1
employer credit for paid family and
included in the carryforward or carryback
year. If the credit is for oil and gas
medical leave (Form 8994). This credit is
calculation.
production from marginal wells, the
reported in Part III, line 4j. See the
Carryforward of the energy credit and
carryback period is 5 years. To carry back
Instructions for Form 8994 for more
the renewable electricity credit. The
an unused credit, file an amended return
information.
energy credit must be recaptured in full if a
(Form 1040X, Amended U.S. Individual
General Instructions
grant is paid under Public Law 111-5,
Income Tax Return, Form 1120X,
section 1603, for investment in energy
Amended U.S. Corporation Income Tax
property that an energy credit was
Return, or other amended return) for the
Partnerships and S corporations
previously claimed or for investment in
prior tax year or an application for tentative
must always complete the source
TIP
renewable energy property that an
refund (Form 1045, Application for
credit form. All other filers whose
election was made to treat the property as
Tentative Refund, or Form 1139,
only source for a credit listed on Form
energy property. Recapture is applicable
Corporation Application for Tentative
3800, Part III, is from a partnership, S
to those amounts previously constituting
Refund). Generally, if you file an
corporation, estate, trust, or cooperative
the qualified basis for an energy credit,
application for a tentative refund, it must
can report the credit directly on Form
including progress expenditures, that are
be filed by the end of the tax year following
3800. The following exceptions apply.
also the basis for the 1603 grant.
the tax year in which the credit arose.
You are claiming the investment credit
Recapture is accomplished as follows.
No part of the unused credit for
(Form 3468) or the biodiesel and
1. Any portion of the energy credit
any year attributable to any credit
renewable diesel fuels credit (Form 8864)
TIP
related to that property that was used to
can be carried back to any tax
in Part III with box A or B checked.
offset tax in a prior tax year must be added
year before the first tax year for which that
You are an estate or trust and the
to tax in the tax year the 1603 grant is
credit was first allowable. See
Credit
source credit must be allocated to
received. Recaptured tax is calculated on
Ordering
Rule, later, to determine which
beneficiaries. For more details, see the
Form 4255.
credits are allowed first.
instructions for Form 1041, U.S. Income
2. Any carryforward of the energy
Tax Return for Estates and Trusts,
credit related to that property is reduced to
Schedule K-1, box 13.
If you have an unused credit after
zero to recapture the unused portion of the
You are a cooperative and the source
carrying it back 1 year (5 years for a credit
credit.
credit can or must be allocated to patrons.
from oil and gas production from marginal
For more details, see the instructions for
wells), carry it forward to each of the 20
See Form 4255 for any other recapture
Form 1120-C, U.S. Income Tax Return for
tax years after the year of the credit. Any
event (change in ownership or change in
Cooperative Associations, Schedule J,
qualified business credits (as defined in
use of property, etc.).
line 5c.
section 196(c)) that are unused after the
Carryforward of certain Form 6478
last tax year of the 20-year carryforward
credits. The alcohol mixture credit, the
Who Must File
period (or at the time an individual
alcohol credit, and the small ethanol
taxpayer dies or other taxpayer, such as a
You must file Form 3800 to claim any of
producer credit expired for fuels sold or
corporation or partnership, ceases to
the general business credits.
used after 2011. The unused alcohol
exist) may be taken as a deduction in the
mixture credits, alcohol credits, and small
earlier of:
ethanol producer credits (for all tax years)
The tax year following the last tax year
can't be carried to a tax year beginning
of the 20-year carryforward period, or
after 2014.
The tax year in which the individual
taxpayer dies or other taxpayer ceases to
exist.
Jan 22, 2019
Cat. No. 10622Q
Change in Filing or Marital
Credit Ordering Rule
Low sulfur diesel fuel production credit
(Form 8896).
Status
General business credits reported on
Credit for oil and gas production from
Form 3800 are treated as used on a
Your general business credit is limited to
marginal wells (Form 8904).
first-in, first-out basis by offsetting the
your tax liability. Therefore, if you filed a
Distilled spirits credit (Form 8906).
earliest-earned credits first. Therefore, the
joint return in a carryback or carryforward
Nonconventional source fuel credit
order in which the credits are used in any
year and your marital status or filing status
(carryforward only).
tax year is:
has changed, you may need to figure your
Energy efficient home credit
Carryforwards to that year, the earliest
separate tax liability in that carryback or
(Form 8908).
ones first;
carryforward year. This would apply if:
Energy efficient appliance credit
The general business credit earned in
You filed as single in the credit year, but
(carryfoward only).
that year; and
filed a joint return in the carryback or
Alternative motor vehicle credit
The carryback to that year.
carryforward year;
(Form 8910).
You filed a joint return in the credit year,
Alternative fuel vehicle refueling
If your general business credits exceed
but filed a joint return with a different
property credit (Form 8911).
your tax liability limit, the credits are used
spouse in the carryback or carryforward
Mine rescue team training credit
in the following order and based on the
year; or
(Form 8923).
order shown under
Order in which credits
You were married and filed a separate
Agricultural chemicals security credit
are used
next.
return in the credit year, but filed a joint
(carryforward only).
return with the same or a different spouse
Credit for employer differential wage
Credits reported on line 2 of all Parts III
in the carryback or carryforward year.
payments (Form 8932).
with boxes A, B, C, and D checked.
Carbon oxide sequestration credit
Determine your separate tax liability in
Credits reported on Part II, line 25.
(Form 8933).
the carryback or carryforward year as
Non-ESBC credits reported on line 5 of
Qualified plug-in electric drive motor
follows.
all Parts III with boxes A, B, C, and D
vehicle credit (Form 8936).
checked.
1. Figure your tax for the carryback or
Qualified plug-in electric vehicle credit
ESBC credits reported on line 6 of all
carryforward year as though you were
(carryforward only).
Parts III with box G checked.
married filing a separate return.
Credit for small employer health
Order in which credits are used. When
2. Figure your spouse's tax in that
insurance premiums (Form 8941).
relevant, the components of the general
year as though he or she was married
Employee retention credit (Form
business credit reported on Form 3800
filing a separate return.
5884-A).
arising in a single tax year are used in the
Employer credit for paid family and
3. Add the amounts in steps (1)
following order.
medical leave (Form 8994).
and (2).
Investment credit (in the following
General credits from an electing large
4. Divide the amount in step (1) by the
order—rehabilitation credit, energy credit,
partnership (Schedule K-1 (Form
amount in step (3). The result should be
1065-B)).
qualifying advanced coal project credit,
rounded to at least three decimal places.
qualifying gasification project credit, and
Although these credits are
5. Multiply the decimal in step (4) by
qualifying advanced energy project credit)
aggregated on Form 3800, keep a
the total tax shown on your joint return for
TIP
(Form 3468).
separate record of each credit,
the carryback or carryforward year. The
Qualifying therapeutic discovery project
including whether the credit was an
result is your separate tax liability and a
credit (carryforward only).
eligible small business credit, to ensure
carryback or carryforward credit is applied
Work opportunity credit (Form 5884).
proper accounting of the credits.
against this amount only.
Biofuel producer credit (Form 6478).
Credit for increasing research activities
Although your carryback or
Eligible Small Business
(Form 6765).
carryforward of the credit is limited to your
An eligible small business is:
Low-income housing credit
separate tax liability, the amount of your
A corporation whose stock is not
(Form 8586, Part I only).
refund resulting from the carryback or
publicly traded,
Enhanced oil recovery credit (Form
carryforward is further limited to your
A partnership, or
8830).
share of the joint overpayment. This is
A sole proprietorship.
Disabled access credit (Form 8826).
found by subtracting your separate tax
Renewable electricity, refined coal, and
liability (as determined above) from your
The average annual gross receipts of
Indian coal production credit (Form 8835).
contribution toward the payment.
the corporation, partnership, or sole
Empowerment zone employment credit
Unless you have an agreement or clear
proprietorship for the 3-tax-year period
(Form 8844).
evidence of each spouse's contribution
preceding the tax year of the credit cannot
Renewal community employment credit
toward the payment of the joint liability,
exceed $50 million. Gross receipts for any
(carryforward only).
your contribution includes the tax withheld
tax year must be reduced by returns and
Indian employment credit (Form 8845).
on your wages and your share of the joint
allowances made during the year. Any
Employer social security and Medicare
estimated tax or tax paid with the return.
reference to your business also includes a
taxes paid on certain employee tips
Your share of these payments is found by
reference to any predecessor of your
(Form 8846).
using the same formula used in
business.
Orphan drug credit (Form 8820).
determining your separate tax liability.
New markets credit (Form 8874).
If your business was not in existence
Substitute the joint estimated tax, or tax
Credit for small employer pension plan
for the entire 3-year period, base your
paid with the return, for the tax in step (5).
startup costs (Form 8881).
average annual gross receipts on the
If the original return for the carryback year
Credit for employer-provided child care
period your business existed. Also, if your
resulted in an overpayment, reduce your
facilities and services (Form 8882).
business had a tax year of less than 12
contribution by your share of the refund.
Qualified railroad track maintenance
months, your gross receipts must be
credit (Form 8900).
Attach a copy of the computation to
annualized by multiplying the gross
Biodiesel and renewable diesel fuels
your amended return or application for
receipts for the short period by 12 and
credit (Form 8864).
tentative refund.
Instructions for Form 3800 (2018)
-2-
dividing the result by the number of
credits not allowed against TMT from Part
carryback of that credit on Part I, line 5,
months in the short period.
I, line 2, plus any prior year unallowed
before figuring the limitation on Part III,
passive activity credit from general
line 1c. Include the carryback when
Member of controlled group,
business credits not allowed against TMT.
figuring the research credit limitation on
business under common control, or
line 1c of any Parts III with the applicable
affiliated group. For purposes of the
If no credits allowed, enter zero on
box A or B checked. Then include the
gross receipts test, all members of a
line 3.
allowable carryback amount on Part I,
controlled group of corporations (as
line 5. See the instructions for Part I,
Passive activity. Generally, a passive
defined in section 52(a)) and all members
line 4, for the required statement that
activity is a trade or business in which you
of a group of businesses under common
must be attached to your tax return.
didn't materially participate. Generally,
control (as defined in section 52(b)) are
rental activities are passive activities,
treated as a single person, and all
Part II. Allowable Credit
whether or not you materially participated.
employees of the members of an affiliated
See Form 8582-CR or Form 8810 for
service group (as defined in sections
Line 10b
details.
414(m) and (o)) shall be treated as
Enter the total allowable credit, if any, from
employed by a single person.
Line 4
your tax return as follows.
Treatment of partners and S
Enter the amount of all carryforwards to
Individuals. The amount from Form
corporation shareholders. A partner or
2018 of unused credits that are reported
1040, line 12a, and Schedule 3 (Form
S corporation shareholder cannot be
from line 2 of Part III with box C checked.
1040), lines 49 through 54 (Form 1040NR,
treated as an eligible small business
lines 47 through 51). Don't include any
Required statement. For each credit,
unless both the partnership or S
general business credit claimed on Form
attach a statement with the following
corporation and partner or shareholder
3800, any prior year minimum tax, or any
information.
meet the gross receipts test as discussed
credit claimed on Form 8912, Credit to
Show the tax year the credit originated,
under Eligible Small Business, earlier, for
Holders of Tax Credit Bonds.
the amount of the credit as reported on the
the tax year that the credit is treated as a
original return, and the amount allowed for
current year general business credit.
Estates and trusts. Enter the total of any
that year. Also state whether the total
write-in credits from Form 1041,
carryforward amount was changed from
Specific Instructions
Schedule G, line 2e.
the originally reported amount and identify
Corporations. Enter the amount from
the type of credit(s) involved. If the revised
Form 1120, Schedule J, Part I, line 5b (or
carryforward amount relates to unused
Complete and attach the appropriate
the applicable line of your return).
additional research credits, attach an
credit forms used to figure your current
additional statement detailing the changes
year credit. See exceptions under
General
Line 13
to the originally reported Form 6765
Instructions, earlier.
See section 38(c)(6) for special rules that
information for all originating credit years
Assembling Form 3800. To ensure
apply to married couples filing separate
applicable.
Form 3800 is correctly processed,
returns, controlled corporate groups,
For each carryback year, show the year
assemble Form 3800 in the following
regulated investment companies, real
and the amount of the credit allowed after
order.
estate investment trusts, estates, and
you applied the carryback.
trusts.
1. Page 1.
For each carryforward year, show the
year and the amount of the credit
2. Page 2.
Line 17
carryforward allowed for that year.
3. Part III with box I checked.
C corporations. If the corporation has
Note. Individuals claiming the research
4. All Parts III with box A checked.
undergone a post-1986 ownership change
credit from a sole proprietorship or
5. All Parts III with box B checked.
(as defined in section 382(g)), section 383
pass-through entity don't include any
may limit the amount of tax that may be
6. Part III with box C checked.
carryforward of that credit on Part I, line 4,
offset by pre-change general business
before figuring the limitation on Part III,
7. Part III with box D checked.
credits. Also, if a corporation acquires
line 1c. Include the carryforward when
8. Part III with box G checked.
control of another corporation (or acquires
figuring the research credit limitation on
its assets in a reorganization), section 384
line 1c of any Parts III with the applicable
Part I. Current Year Credit
may limit the amount of tax attributable to
box A or B checked. Then include the
for Credits Not Allowed
recognized built-in gains that may be
allowable carryforward amount on Part I,
offset by pre-acquisition general business
Against Tentative
line 4, and attach the statement required
credits. If either of these limitations apply,
above.
Minimum Tax (TMT)
attach a computation of the allowable
Adjustment for the payroll tax credit.
general business credit, enter the amount
Complete all Parts III before
A qualified small business that claimed the
on Part II, line 17, and write “Sec. 383” or
completing Part I and Part II. See
!
payroll tax credit on Form 6765 must
“Sec. 384” in the margin next to your entry
Part III. General Business Credits
reduce its research credit carryforward by
on Part II, line 17.
CAUTION
or Eligible Small Business Credits
for
the amount of the payroll tax credit.
Line 18
more information.
Line 5
Complete Part II, lines 18 through 26, if
Line 3
Use Part I, line 5, only when you amend
any of the following apply.
your 2018 return to carry back unused
An amount is entered for the
Enter the applicable passive activity credit
credits from 2019. Enter the amount that is
empowerment zone employment credit on
amount allowed from Form 8582-CR,
reported from line 2 of Part III with box D
line 3 of Part(s) III with box A, B, C, or D
Passive Activity Credit Limitations, or
checked.
checked.
Form 8810, Corporate Passive Activity
An amount is entered for the renewal
Loss and Credit Limitations. The passive
Note. Individuals claiming the research
community employment credit on line 3 of
activity credit amount allowed on Part I,
credit from a sole proprietorship or
Part III with box C checked.
line 3, only applies to the general business
pass-through entity don't include any
Instructions for Form 3800 (2018)
-3-
If you have prior year unallowed
for the required statement that must
or B checked; then, enter the total for each
passive activity credit carryover for the
be attached to your tax return.
credit on the applicable line of the Part III
empowerment zone or renewal community
with box I checked.
Adjustment for the payroll tax
employment credit.
credit. A qualified small business that
A consolidated Part III is only needed
claimed the payroll tax credit on Form
If any of the above apply, multiply Part
when there is more than one Part III with
6765 must reduce its research credit
II, line 14, by 75% (0.75).
box A or B checked. More than one box A
carryforward by the amount of the payroll
or B means more than one individual letter
All others, skip Part II, lines 18 through
tax credit.
box (for example, if there is more than one
25, and enter zero on Part II, line 26.
Parts III with box B checked, a
Line 35
Line 24
consolidated Part III is needed to reflect
Use Part II, line 35, only when you amend
the total of all the boxes B checked) or
Enter the applicable passive activity credit
your 2018 return to carry back unused
more than one combination of letters (for
amount for the empowerment zone and
credits from 2019. Enter the amount that is
example, if there is a box A checked and a
renewal community employment credit
reported from line 5 of Part III with box D
box B checked, a consolidated Part III is
allowed from Form 8582-CR or Form
checked.
needed to reflect the total of boxes A and
8810. The passive activity credit amount
B).
Note. Individuals claiming the research
allowed on Part II, line 24, only applies to
credit from a sole proprietorship or
Column (b)
the empowerment zone and renewal
pass-through entity don't include any
community employment credit reported on
If you are reporting a credit from a
carryback of that credit on Part II, line 35,
Part III, line 3, plus any prior year
pass-through entity, you must enter that
before figuring the limitation on Part III,
unallowed passive activity empowerment
pass-through entity's employer
line 4i. Include the carryback when figuring
zone and renewal community employment
identification number (EIN) under column
the research credit limitation on line 4i of
credit. See the instructions for the
(b) for that credit.
any Parts III with the applicable box A or B
applicable form for details.
checked. Then include the allowable
If you are reporting a credit reported to
If no credits allowed, enter zero on
carryback amount on Part II, line 35. See
you on Form 1099-PATR, Taxable
line 24.
the instructions for Part I, line 4, for
Distributions Received From
the required statement that must be
Cooperatives, you must enter that
See the instructions for Part I, line 3, for
attached to your tax return.
cooperative's EIN under column (b) for
the definition of a passive activity.
Line 38
that credit.
Line 33
If Part II, line 38, is smaller than the sum of
A separate Part III will be needed to
Enter the applicable passive activity credit
Part I, line 6, and Part II, lines 25 and 36,
report the EIN of the pass-through entity,
amount for general business credits
see
Carryback and Carryforward of
including cooperatives, and the amount of
allowed against TMT and eligible small
Unused
Credit, earlier.
credit from that entity, if a credit is
business credits allowed from Form
received from more than one source and
8582-CR or Form 8810. See the
Part III. General Business
one of the sources is a pass-through
instructions for the applicable form for
Credits or Eligible Small
entity, including a cooperative. Column (b)
details.
is only completed for any Part III with box
Business Credits
The passive activity credit amount
A or B checked.
Complete a separate Part III for each box
allowed on Part II, line 33, only applies to
Don't enter an EIN under column
checked. In addition, for each box A or B
the general business credits from Part II,
(b) when completing Part III with
checked, if you have a credit from more
TIP
line 32, plus any prior year unallowed
box C, D, or G checked.
than one source and one of the sources is
passive activity credit from general
a pass-through entity, including a
business credits reported on Part III,
cooperative (see
Column
(b), later), a
line 4, and eligible small business credit.
Limitation on Certain Credits
separate Part III is needed for each
If no credits allowed, enter zero on
pass-through entity for which you received
The aggregate amount from each credit
line 33.
the same credit. As a result, one checkbox
form is usually reported on the appropriate
could have multiple Parts III if you receive
line of Form 3800, Part III, for the
See the instructions for Part I, line 3, for
a single credit from multiple pass-through
applicable boxes A and B, to reflect
the definition of a passive activity.
entities.
self-generated credit sources and all
pass-through entity sources. However,
Line 34
After you have completed all
certain credits have limitations imposed.
necessary Parts III, complete Part
Enter the amount of all carryforwards to
!
They include:
I, if necessary, then Part II.
2018 of unused credits that are reported
Form 3468, Part III, line 12p—$4,000
CAUTION
from line 5 of Part III with box C checked
limitation for qualified small wind energy
Box A Through D and G
and line 6 of Part III with box G checked.
property (reported on Part III, line 4a);
Check the box that identifies the credit
Form 8826, line 8—$5,000 limitation for
Note. Individuals claiming the research
being reported.
the overall credit (reported on Part III,
credit from a sole proprietorship or
line 1e);
pass-through entity don't include any
Box I
Form 8881, line 5—$500 limitation for
carryforward of that credit on Part II,
Check box I if you are reporting credits on
the overall credit (reported on Part III,
line 34, before figuring the limitation on
more than one Part III with box A or B
line 1j); and
Part III, line 1c and line 4i. Include the
checked. You must use a Part III with box I
Form 8882, line 7—$150,000 limitation
carryforward when figuring the research
checked to consolidate the amounts from
for the overall credit (reported on Part III,
credit limitation on line 1c and line 4i of
all Parts III with box A or B checked.
line 1k).
any Parts III with the applicable box A or B
Consolidate the Parts III with box A or B
checked. Then include the allowable
checked by combining the amounts for
carryforward amount on Part II, line 34.
In situations where there is a limitation
each credit line on each Part III with box A
See the instructions for Part I, line 4,
on the credit amount, the limited amount
Instructions for Form 3800 (2018)
-4-
allowed is allocated pro rata and anything
the pass-through entity, see Regulations
Part I, Section B, of 2009 through 2012
above the limitation is lost.
sections 1.41-7(c) and 1.53-3.
Form 8834 can be reported on Part III,
line 1z.
If in the current tax year you had no
Lines 1a and 4a
taxable income attributable to a particular
Line 1aa
If you are a cooperative described in
business interest, you can't claim any
section 1381(a), you must allocate to your
Employee retention credit from Form
research credit this year related to that
patrons the investment credit in excess of
5884-A, Section A, can be reported on
business.
your tax liability limit. Allocate to your
Part III, line 1aa. See the Instructions for
If any of your research credit isn't
patrons the portion, if any, of the
Form 5884-A for more information.
allowed to be used because of this
investment credit on Part I, line 6, or Part
Line 1bb
limitation, see
Carryback and
II, line 36, in excess of Part II, line 16 or
Carryforward of Unused
Credit, earlier.
Enter the total of the amounts shown in
line 29, respectively. While any excess is
box 7 of the Schedules K-1 (Form
allocated to patrons, any credit recapture
Line 1e
1065-B), Partner's Share of Income (Loss)
applies as if you as the cooperative had
When reporting the disabled access credit
From an Electing Large Partnership, you
claimed the entire credit.
from Form 8826 on Part III, line 1e, don't
received from electing large partnerships.
Note. Any carryforward of the qualifying
enter more than $5,000 in column (c) of
Line 1zz
therapeutic discovery project credit may
Parts III with box A or B checked,
be claimed on Part III, line 1a.
combined.
Line 1zz is used to report the credit for oil
and gas production from marginal wells
Line 1c and 4i
Line 1f
and the carryforward of certain other
Cooperatives, estates, and trusts: enter
A qualified small business must
credits.
the applicable part of the amount from
complete Form 3800 before
!
The credit for oil and gas production
Form 8835, line 22. All others: enter the
completing Section D of Form
CAUTION
from marginal wells. Enter the amount
applicable part of the amount from Form
6765, if the payroll tax credit is being
from Form 8904, line 8, or from the
8835, line 20. Don't enter an amount from
claimed. See the instructions for Form
applicable line of your Schedule K-1. See
Form 8835 that is included on Form 3800,
6765 for more details.
the Instructions for Form 8904 for more
Part III, line 4e.
information.
Eligible small businesses, enter your
Line 1j
research credit on line 4i. See the
Carryforward of certain other credits.
definition of Eligible Small Business,
When reporting the credit for small
Check box (C) and enter the amount in
earlier. All others, enter your research
employer pension plan startup costs from
column (c) to claim any carryforward to
credit on line 1c.
Form 8881 on Part III, line 1j, don't enter
2018 of any unused credit from:
more than $500 in column (c) of Parts III
Form 3468 (for years prior to 2008 for
Partners and S corporation
with box A or B checked, combined.
the rehabilitation credit) (for tax years
shareholders, see Treatment of partners
Line 1k
beginning before October 4, 2008, for the
and S corporation shareholders under
energy credit);
Eligible Small Business, earlier.
When reporting the credit for
Form 5884 for years prior to 2007;
employer-provided childcare facilities and
Research credit limitation. If you are an
Form 6478 for years prior to 2005;
services from Form 8882 on Part III,
individual, the amount of the research
Form 8846 for years prior to 2007; or
line 1k, don't enter more than $150,000 in
credit that may be included on Part III,
Form 8900 for years prior to 2008.
column (c) of Parts III with box A or B
line 1c or line 4i, is limited to the amount of
checked, combined.
tax attributable to your taxable income
Also use Part III, line 1zz, to enter any
from the sole proprietorship or your
carryforward to 2018 of any unused credit
Line 1o
from general business credits no longer
interest in the pass-through entity
Only the carryforward of the
covered on Form 3800 due to, and not
(partnership, S corporation, estate, or
nonconventional source fuel credit from
trust) generating the credit. Figure the
limited to, expiration of a tax provision.
Form 8907 can be reported on Part III,
research credit limitation separately for
The following list identifies these credits.
line 1o.
each sole proprietorship or pass-through
Trans-Alaska pipeline liability fund
credit.
entity by using the following formula.
Line 1q
Credit for employers affected by
Only the carryforward of the energy
Hurricane Katrina, Rita, or Wilma (Form
Taxable income attributable to the sole
efficient appliance credit from Form 8909
5884-A, Section A only).
proprietorship or your interest in the
can be reported on Part III, line 1q.
Hurricane Katrina housing credit (Form
pass-through entity
5884-A, Section A only).
Line 11 ×
Line 1v
Credit for affected Midwestern disaster
Your taxable income for the year
Only the carryforward of the agricultural
area employers (Form 5884-A, Section A
chemicals security credit from Form 8931
only).
can be reported on Part III, line 1v.
The sum of the fractions used for
Employer housing credit (Form 5884-A,
determining the limits can't exceed one.
Section B only).
Line 1x
The research credit used to determine the
New hire retention credit (Form
The carbon dioxide sequestration credit is
limitation is the sum of the current year
5884-B).
renamed carbon oxide sequestration
credit (determined without regard to the
Credit for contributions to selected
credit. The credit was expanded to include
limitation), any carryforwards (adjusted for
community development corporations
carbon oxide. Any carryforward of the
any payroll tax credit claimed) of the credit
(Form 8847).
carbon dioxide credit can be reported on
not used in prior years, and any carryback
Welfare-to-work credit (Form 8861).
this line.
of the credit from 2019. For information on
New York Liberty Zone business
how to figure your taxable income for the
Line 1z
employee credit (Form 8884).
year, your taxable income attributable to
Only the carryforward of the qualified
the sole proprietorship, or your interest in
plug-in electric vehicle credit claimed in
Instructions for Form 3800 (2018)
-5-

Download Instructions for IRS Form 3800 - General Business Credit 2018

926 times
Rate
4.7(4.7 / 5) 46 votes
ADVERTISEMENT
Page of 6