Instructions for Form 3468

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.

What’s New

Part IV, advanced manufacturing investment credit.

The advanced manufacturing investment credit is equal

to 35% of the qualified investment, unless the property

was placed in service before 2026, in which case the rate

remains 25%. See Part IV, later.

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 (PWA) 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 and its instructions 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 V, clean electricity investment credit. P.L. 119-21,

commonly known as the One Big Beautiful Bill Act,

has restricted material assistance from prohibited foreign

entities, added restrictions related to 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 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.

Aug 25, 2026

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.

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 invest­

ment 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

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 coop­

eratives. See Transferees 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

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

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,

and

2

• Is reasonable to believe that the property will be new

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)

• Any building to which section 47(d) applies will no

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 1/3

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.

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 PWA 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).

3

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

• Form 990-T, Exempt Organization Business Income

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.

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.

applicable).

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.

Note: 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.

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) or a transfer election was made under

section 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.

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.

Tax Return or other applicable tax return.

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.

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.

Credit Transfers

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.

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).

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.

4

Instructions for Form 3468 (2025)

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

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.

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

Instructions for Form 3468 (2025)

an 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 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.

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 PWA 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 PWA 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.

For further information, see PWA requirements

available at IRS.gov/credits-deductions/prevailing-wageand-apprenticeship-requirements, including frequently

asked questions.

5

Filers Completing Part III

For an increased tax credit under section 48C, you must

meet the PWA requirements with respect to any qualified

advanced energy project.

As part of a section 48C(e) application, an applicant

must confirm that it intends to meet the PWA 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 PWA

requirements by filing the “Final PWA Confirmation”

statement with the DOE.

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.

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 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.

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.

For more information on the PWA requirements,

including applicable exceptions, see IRS.gov/PWAFAQs.

6

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

For an increased tax credit under section 48E or 48, you

must meet the PWA requirements or one of the limited

exceptions.

However, if you do not meet the PWA requirements or

one of the limited exceptions, then you will qualify for the

base 6% credit rate but not for the increased rate.

See Frequently asked questions about the

PWA under the Inflation Reduction Act

available at IRS.gov/creditsdeductions/ frequently-askedquestions-about-the-prevailing-wage-and-apprenticeshipunder-the-inflation-reduction-act.

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 PWA 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 PWA

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 PWA requirements.

Beginning of construction. There are two methods that

can be used to establish that construction of a qualified

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:

Instructions for Form 3468 (2025)

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.

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.

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.

For more information on the PWA requirements,

including applicable exceptions, see IRS.gov/PWAFAQs.

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.

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

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.

Instructions for Form 3468 (2025)

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 PWA 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.

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.

7

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.

Domestic content bonus credit amount. Section

48E(a)(3)(B) provides a domestic content bonus credit

amount for a section 48E qualified investment in a

qualified facility or energy storage technology. Section

48(a)(12)(C) provides a domestic content bonus credit

amount for an energy project. Both section 48E(a)(3)(B)

and section 48(a)(12)(C) increase the energy 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.

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 and Notice 2025-08) 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, Notice 2024-41, and Notice 2025-08 for

definitions and more information.

Caution: The section 48E domestic content bonus

credit for a qualified investment with respect to a

qualified facility or energy storage technology has a new

adjusted percentage for manufactured products (including

components) based on the beginning of construction

date. See the following table for the requirements.

Beginning of Construction

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%

8

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

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.

1. Your name and taxpayer identification number shown

on the return.

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.

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 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 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

Instructions for Form 3468 (2025)

or section 48. See Notice 2023-47, 2023-29 I.R.B. 318

available at IRS.gov/irb/2023-29_IRB#NOT-2023-47.

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.

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.

Energy community. Energy community means the

following:

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));

2. A metropolitan statistical or nonmetropolitan statistical

area that:

a. Has (or, at any time during the period beginning

after 2009, had) 0.17% 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

Instructions for Form 3468 (2025)

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 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.

T.D. 10025 provides final regulations regarding

clean electricity low-income communities bonus credits

amounts for calendar year 2025 and subsequent years.

Applicable facility. Applicable facility means any

qualified facility under section 48E(b)(3) that:

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.

9

Applicable percentage. The increased percentage with

respect to categories of applicable facilities is as follows:

Percentage For an . . .

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.

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

Energy percentage. The increased energy percentage

with respect to categories of eligible property and

limitation is:

20%

Eligible property that is a qualified low-income

economic benefit project

Percentage For an . . .

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.

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.

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

low-income communities bonus credit program. See T.D.

10

9979 available at IRS.gov/irb/2023-35_IRB#TD-9979 and

Regulations section 1.48(e)-1 for more information.

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

• 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

d. Part of a qualified low-income economic benefit

project.

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

Instructions for Form 3468 (2025)

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

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.

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

Instructions for Form 3468 (2025)

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

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

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.

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

11

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

• Includes a qualified investment of which an amount

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

12

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.

Part III—Qualifying Advanced Energy

Project Credit Under Section 48C

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

Instructions for Form 3468 (2025)

• 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 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.

Instructions for Form 3468 (2025)

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 PWA requirements described in Part I,

lines 7 and 8, Filers Completing Part III, earlier, and the

certification for PWA 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.

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 electing to transfer the 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.

Part IV—Advanced Manufacturing

Investment Credit Under Section 48D

The advanced manufacturing investment credit is equal

to 35% of the qualified investment with respect to any

advanced manufacturing facility of an eligible taxpayer

in the tax year, unless the facility was placed in service

before 2026, in which case the credit rate is 25%. See

13

Regulations section 1.48D-1 and P.L. 119-21, section

70308, for more information.

5. Testing includes, but is not limited to, probing,

screening, and burn-in work.

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.

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).

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.

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.

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.

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);

3. Equipment for epitaxial growth of transistor features;

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;

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.

7. Inspection and measuring equipment, including

scanning electron microscopes, atomic force

microscopes, optical inspection systems, wafer

probes and optical scatterometer, and Energy

Dispersive Spectroscopy;

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.

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;

4. Assembly includes, but is not limited to, wafer-dicing,

die-bonding, wire bonding, solder bumping, and

encapsulation.

14

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;

Instructions for Form 3468 (2025)

11. Electrostatic chucks;

12. High performance pumps;

13. High purity quartz devices;

14. Ultra-high vacuum chamber components; and

15. Photomasks and light sources used in

photolithography.

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.

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

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

Instructions for Form 3468 (2025)

• Functions related to central utilities buildings, material

handling and ultrapure water generation facilities, and

computing (data center).

See Regulations section 1.48D-3(c) 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.

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.

Line 1b

Enter the basis of the qualified investment with respect to

any advanced manufacturing facility (defined above) for

the tax year.

Line 1c

For property placed in service before 2026, multiply

line 1b by 25% (0.25). For all other property, multiply

line 1b by 35% (0.35).

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

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.

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.

15

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.

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.

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.

16

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 2025, 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

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.

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 section 7701(a)(51)(D)(i)(ll)).

If the taxpayer is determined to be a foreign-influenced

entity during any tax year under section 7701(a)(51)(D)(i)

(ll), and such determination relates to a qualified facility,

no credit will be allowed for such a tax year.

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

Instructions for Form 3468 (2025)

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.

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

Instructions for Form 3468 (2025)

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,

• 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 enti­

ties. 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 2025, no credit will be

allowed.

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 section 7701(a)(51)(D)(i)(ll)).

If the taxpayer is determined to be a foreign-influenced

entity during any tax year under section 7701(a)(51)(D)(i)

(ll), and such determination relates to an energy storage

technology, no credit will be allowed for such a 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.

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.

17

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.

Section C—Totals, Credit Reduction for

Subsidized Energy Financing or Private Activity

Bonds, and Credit Phaseout

Line 6

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

18

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 January 1, 2027, or the

issuance of 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 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

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.

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.

Instructions for Form 3468 (2025)

• 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.

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.

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,

Instructions for Form 3468 (2025)

• 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

transmission or distribution of the electricity produced

or stored by such property; and

• Are properly chargeable to the capital account of the

taxpayer.

See Regulations section 1.48-14(h) for more

information.

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.

19

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

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.

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.

20

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 either (1) the PWA requirements are met or (2) a

limited exception is 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.

Beginning of Construction

Before

2025

From

After

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

Meets PWA

requirements or

limited exception

30%

10%

0%

Does not meet

PWA requirements or

limited exception

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.

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.

Instructions for Form 3468 (2025)

2. Electrochromic glass that uses electricity to change

its light transmittance properties in order to heat or

cool a structure.

Line 3d

a. Generate electricity,

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.

b. Heat or cool (or provide hot water for use in) a

structure, or

However, you don’t qualify for the low-income

communities bonus credit if either of the following apply.

3. Equipment that uses solar energy to:

c. Provide solar process heat (but not to heat a

swimming pool).

1. You checked the box in Part I, line 11g; or

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 PWA

requirements or a limited exception. 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

After

2024

Meets PWA

requirements or

limited exception

30%

0%

Does not meet

PWA requirements or

limited exception

6%

0%

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.

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.

Line 3m

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 3m blank, skip line 3n, and

go to line 4.

Section C—Qualified Fuel Cell Property

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 either (1) the PWA requirements

are met or (2) a limited exception is 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 PWA

requirements or

limited exception

30%

10%

0%

Does not meet

PWA requirements or

limited exception

6%

2%

0%

Tip: See Increased Credit Amount Statement, earlier, for

more information about the required statement.

Instructions for Form 3468 (2025)

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.

21

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.

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: Basis is attributable to periods after October

3, 2008, if the property was acquired after October 3,

2008, or to the extent of basis attributable to construction,

reconstruction, or erection by the taxpayer after October

3, 2008.

Line 5g

Enter your applicable energy percentage. See Increased

Credit Amount Statement, earlier, for more information.

Line 5i

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.

Line 7a

Enter the basis, attributable to periods after 2005, of any

qualified microturbine property placed in service during

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.

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.

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 5l

Line 7g

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 5l blank, skip line 5m, and

go to line 5n.

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 5o

Line 7j

Enter the applicable number of kilowatts of capacity

attributable to the basis on line 5f. This entry must be a

whole number.

Enter the applicable number of kilowatts of capacity

attributable to the basis on line 7a. This entry must be

a whole number.

Section D—Qualified Microturbine Property

Section E—Combined Heat and Power System

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

22

Combined heat and power system property.

Combined heat and power system property means

property comprising a system that:

Instructions for Form 3468 (2025)

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

must elect not to treat such property as combined heat

and power system property for section 48 purposes.

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

Instructions for Form 3468 (2025)

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.

Line 9h

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 9h blank, skip line 9i, and go

to line 10.

Section F—Qualified Small Wind Energy

Property

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.

23

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

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.

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.

Line 13f

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 13f blank, skip line 13g, and

go to line 14.

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 H—Geothermal Heat Pump Systems

Line 11p

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).

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.

Line 15d

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

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.

Enter the applicable energy community bonus credit

percentage. See Energy community bonus credit rate,

earlier, for more information.

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.

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.

24

Instructions for Form 3468 (2025)

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.

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,

• 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; or

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 apply, enter -0- on

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.

Line 17m

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 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

2. Captures such gas for sale or productive use, and not

for disposal by means of combustion.

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.

Instructions for Form 3468 (2025)

25

Line 19d

Line 21d

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 19d blank,

skip line 19e, and go to line 19f.

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.

Line 19f

Line 21f

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 19f blank, skip line 19g, and

go to line 20.

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.

Section K—Microgrid Controllers Property

Section L—Qualified Investment Credit Facility

Property

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.

Qualified microgrid. A qualified microgrid is an electrical

system that:

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.

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.

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

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).

26

Instructions for Form 3468 (2025)

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

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.

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.”

Instructions for Form 3468 (2025)

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 apply.

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 apply, enter -0- on

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

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 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 facili­

ties 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

27

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.

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.

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.

28

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

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.

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.

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-hydrogenproduction-tax-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

Instructions for Form 3468 (2025)

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.

Line 25d

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.

Instructions for Form 3468 (2025)

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 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.

Line 30

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.

29

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.

Part VII—Rehabilitation Credit Under

Section 47

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

30

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.

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.

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.

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

Instructions for Form 3468 (2025)

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).

date of final certification, and the partnership employer

identification number (EIN), if applicable.

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.

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.

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

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.

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 determined with respect to the

qualified rehabilitation expenditures and allowed ratably

over a 5-year period beginning in the tax year that the

qualified rehabilitated building is placed in service.

Note: The amount reported on Line 1j represents the 4%

credit. This amount is allowed ratably over a 5-year period.

Do not enter the full 5-year 20% credit amount on this line.

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,

Instructions for Form 3468 (2025)

Line 1m

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 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.

31

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the

United States. You are required to give us the information. We need it to ensure that you are complying with these laws

and to allow us to figure and collect the right amount of tax.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act

unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be

retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax

returns and return information are confidential, as required by section 6103.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden

for 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)