Instructions for Form 8835

2025

Instructions for Form 8835

Renewable Electricity Production Credit

Section references are to the Internal Revenue Code

unless otherwise noted.

Future Developments

For the latest information about developments related to

Form 8835 and its instructions, such as legislation

enacted after they were published, go to IRS.gov/

Form8835.

What’s New

Energy communities. P.L. 119-21, commonly known as

the One Big Beautiful Bill Act, modified section 45 to

expand the definition of “energy community” for purposes

of a qualified facility that is an advanced nuclear facility.

This only applies for tax years beginning after July 4,

2025. See section 45(b)(11)(iv) and (C), and Increased

Credit in Energy Communities, later.

Form 7220. If you are claiming a credit on Part II, line 9,

and the facility meets the prevailing wage requirements of

section 45(b)(7) and the apprenticeship requirements of

section 45(b)(8), you must complete and attach to your tax

return new Form 7220, Prevailing Wage and

Apprenticeship (PWA) Verification and Corrections, to

provide the required information when claiming the

increased amount on this line.

Reminders

Credit amounts. The Inflation Reduction Act of 2022

(IRA 2022) changed the manner in which section 45 credit

amounts are calculated on the sale of electricity produced

in any qualified facility placed in service after December

31, 2021. For more information, see Notice 2023-51,

available at IRS.gov/irb/2023-30_IRB#NOT-2023-51.

Pre-filing registration. The IRS has established a

pre-filing registration process that must be completed prior

to electing payment or transfer of the renewable electricity

production credit. See Pre-filing registration requirement

for payment or transfer, later.

General Instructions

Purpose of Form

Use a separate Form 8835 to claim the credit for electricity

that you produced from certain renewable resources at

each qualified facility. Complete Part I to report information

on qualified property or a qualified facility. Complete Part II

to calculate the credit. The credit is allowed only for the

sale of electricity produced in the United States or U.S.

territories from qualified energy resources at a qualified

facility.

Taxpayers, applicable entities, partnerships, and S

corporations must file a separate form for each qualified

Dec 22, 2025

facility that is used in your trade or business to claim the

credit. All others are generally not required to complete or

file this form if their only source for this credit is from a

partnership, S corporation, estate, trust, or cooperative.

Instead, they can report their share of the credit directly on

Form 3800, General Business Credit. The following

exceptions apply.

• You are a(n) estate or trust and the source credit can be

allocated to beneficiaries. For more details, see the

instructions for Form 1041, Schedule K-1, box 13, code J.

• You are a cooperative and the source credit can or must

be allocated to patrons. For more details, see the

instructions for Form 1120-C, Schedule J, line 5c.

Election To Treat a Qualified Facility as Energy

Property

Section 48(a)(5) provides an irrevocable election to treat

qualified property (described in section 48(a)(5)(D)) that is

part of a qualified investment credit facility (described in

section 48(a)(5)(C)) as energy property eligible for the

investment credit (reported on Form 3468, Investment

Credit, Part VI) instead of a production credit reportable

on this form. This election applies to a facility:

• That is a qualified facility under section 45(d)(1), (2),

(3), (4), (6), (7), (9), or (11) that is placed in service after

2008 and the construction of which began before 2025.

See Construction of a Qualified Facility, later;

• For which no credit has been allowed under section 45;

and

• For which a taxpayer has made an irrevocable election

to treat the facility as energy property.

See the Instructions for Form 3468 for information on

making the election.

Coordination With Department of Treasury

Grants

If a grant is paid under the American Recovery and

Reinvestment Act of 2009, section 1603 grant, for placing

into service specified energy property (described in

section 1603(d)), no production credit under section 45, or

investment credit under section 48, is allowed for the

property for the tax year in which the grant is made or any

subsequent tax year. See section 48(d) for more

information.

You may not partition the basis of property for which a

section 1603 grant was received and claim a production

credit under section 45 or investment credit under section

48 for any part of the basis of that property. However, you

must reduce the basis of the specified energy property by

50% of the amount of the actual section 1603 grant.

You may have to refigure the investment credit and

recapture all or a portion of it if a section 1603 grant was

made for section 48 property for which a credit was

Instructions for Form 8835 (2025) Catalog Number 55349M

Department of the Treasury Internal Revenue Service www.irs.gov

allowed for progress expenditures before the grant was

made. Recapture is applicable to those amounts

previously included in the qualified basis for an energy

credit, including progress expenditures, that are also the

basis for the section 1603 grant.

How To Figure the Credit

Generally, the credit for electricity produced from qualified

energy resources at a qualified facility during the 10-year

period beginning on the date the facility was originally

placed in service, and sold by you to an unrelated person

during the tax year (see Definitions, later), is:

• 0.3 cents per kilowatt-hour (kWh) for a qualified facility

placed in service after 2021, or

• 1.5 cents per kWh for a qualified facility placed in

service before 2022.

The credit for electricity produced is proportionately

phased out over a 3-cent range when the reference price

exceeds the 8-cent threshold price. The 0.3 or 1.5 cent

credit rate and the 8-cent threshold price are adjusted for

inflation. The reference price and the inflation adjustment

factor (IAF) for each calendar year are published during

the year in the Federal Register. If the reference price is

equal to or less than the threshold price (adjusted by the

IAF), there is no reduction. For electricity produced, if the

reference price is 3 cents or more over the adjusted

threshold price, there is no credit; if the reference price is

more than the threshold price, but less than 3 cents over

the adjusted threshold price, there is a phaseout

adjustment on line 3 (Part II). For more information, see

Federal Register 2025-09366.

Credit rates. For calendar year 2025, the effective credit

rate for electricity produced and sold is as follows:

• Qualified facilities placed in service before 2022.

From qualified energy resources of wind, closed-loop

biomass, and geothermal energy, 3.0 cents per kWh; and

1.5 cents per kWh on the sale of electricity produced from

the qualified energy resources of open-loop biomass,

landfill gas, trash, qualified hydropower, and marine and

hydrokinetic energy.

• Qualified facilities placed in service after 2021.

From qualified energy resources of wind, closed-loop

biomass, geothermal energy, and solar energy, 0.6 cents

per kWh; and 0.3 cents per kWh on the sale of electricity

produced from the qualified energy resources of

open-loop biomass, landfill gas, trash, qualified

hydropower, and marine and hydrokinetic renewable

energy.

• Qualified facilities placed in service after 2022.

From qualified energy resources of qualified hydropower

and marine and hydrokinetic renewable energy, 0.6 cents

per kWh.

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 renewable

electricity production credit for a facility originally placed in

service after 2022, as a payment of income tax. Resulting

overpayments may result in refunds.

Applicable entities making the elective payment

election for the renewable electricity production credit

must file:

• Form 8835 and any applicable attachments;

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• Form 3800, General Business Credit; and

• Form 990-T, Exempt Organization Business Income Tax

Return, or other applicable income tax return.

For a discussion of what is an applicable entity, see

Applicable entity making 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.

Your election to treat the credit as a payment generally

applies to the tax year in which the qualified facility is

originally placed in service and any subsequent year

during the 10-year period described in section 45(a)(2)(A)

(ii) for this facility. You must obtain an IRS-issued

registration number for the facility for such tax year and

renew the registration for each succeeding year.

Credit transfers. Under section 6418, eligible taxpayers,

partnerships, and S corporations can elect to transfer all

or part of the credit figured in Part II 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 or

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 figured in Part II, you must

complete a pre-filing registration for each facility. To

register, go to IRS.gov/Credits-Deductions/Register-forElective-Payment-or-Transfer-of-Credits. See Pub. 5884,

Inflation Reduction Act (IRA) and CHIPS Act of 2022

(CHIPS) Pre-filing Registration Tool, for more information.

Also, see Registering for and Making EPEs and Transfer

Elections in the Instructions for Form 3800.

Definitions

Construction of a Qualified Facility

Two methods can be used to establish that construction of

a qualified facility has begun.

1. Physical Work Test is satisfied when physical work

of a significant nature begins and other requirements are

met.

2. Five Percent Safe Harbor is satisfied when a

taxpayer pays or incurs (within the meaning of Regulations

sections 1.461-1(a)(1) and (2)) 5% or more of the total

cost of the facility and meets certain other requirements.

In establishing the beginning of construction under

either method, taxpayers must demonstrate either

continuous construction or continuous efforts toward

placing the facility in service. A taxpayer that places a

qualified facility in service no more than 4 calendar years

after the calendar year during which construction of the

qualified facility began will be deemed to have satisfied

this requirement. See Notice 2016-31 for more details.

Certain facilities may qualify for a longer period in which

they must be placed in service due to significant national

security concerns, developmental delays caused by the

COVID-19 pandemic, or Offshore and Federal Land

Instructions for Form 8835 (2025)

Projects. See Notice 2019-43, Notice 2020-41, Notice

2021-05, and Notice 2021-41 for more details.

Resources means wind, closed-loop biomass,

open-loop biomass, geothermal energy, solar energy,

municipal solid waste, qualified hydropower production,

and marine and hydrokinetic renewables.

Closed-loop biomass is any organic material from a

plant that is planted exclusively for use at a qualified

facility to produce electricity.

Open-loop biomass is solid, nonhazardous, cellulosic

waste material; lignin material; or agricultural livestock

waste nutrients, as defined in section 45(c)(3). See Notice

2008-60, 2008-30 I.R.B. 178, for rules related to

open-loop biomass, including an expanded definition of a

qualified facility and rules related to sales.

Geothermal energy is energy derived from a

geothermal deposit, as defined by section 613(e)(2).

Municipal solid waste is solid waste, as defined

under paragraph 27 of 42 U.S.C. 6903. Municipal solid

waste doesn’t include paper that is commonly recycled

and that has been segregated from other solid waste (as

so defined).

Hydropower production means the incremental

hydropower production for the tax year from any

hydroelectric dam placed in service on or before August 8,

2005, and the hydropower production from any

nonhydroelectric dam described in section 45(c)(8)(C).

Marine and hydrokinetic renewable energy means

energy derived from waves, tides, and currents in oceans,

estuaries, and tidal areas; free-flowing water in rivers,

lakes, and streams; free-flowing water in an irrigation

system, canal, or other man-made channel, including

projects that utilize nonmechanical structures to

accelerate the flow of water for electric power production

purposes; or differentials in ocean temperature (ocean

thermal energy conversion). See section 45(c)(10)(B) for

exceptions.

Qualified Facilities

Note: IRA 2022 generally provides that the amendments

to section 45 apply to facilities placed in service after

2021. See section 13101(k) of P.L. 117-169.

A qualified facility is any of the following facilities owned

by you and used to produce electricity.

• Wind facility originally placed in service after 1993, the

construction of which begins before 2025. This doesn't

include any facility for which any qualified small wind

energy property expenditure (as defined in section 25D(d)

(4)) is used in determining the residential clean energy

credit.

• Closed-loop biomass facility originally placed in service

after 1992, the construction of which begins before 2025.

• Closed-loop biomass facility modified to co-fire with

coal or other biomass (or both), owned by the taxpayer

and originally placed in service before 2025. The

modification must be approved under the Biomass Power

for Rural Development Programs or be part of a pilot

project of the Commodity Credit Corporation as described

in 65 Fed. Reg. 63052. The facility will be treated as

modified before 2025 if the construction of the

modification begins before 2025.

Instructions for Form 8835 (2025)

• Closed-loop biomass facility that is a new unit placed in

service after October 3, 2008, in connection with a facility

described in section 45(d)(2)(A)(i), but only to the extent

of the increased amount of electricity produced at the

facility by reason of the new unit.

• Open-loop biomass facility using cellulosic waste, the

construction of which begins before 2025.

• Open-loop biomass facility using agricultural livestock

waste nutrients originally placed in service after October

22, 2004, the construction of which begins before 2025,

and the nameplate capacity rating isn‘t less than 150

kilowatts.

• Open-loop biomass facility that is a new unit placed in

service after October 3, 2008, in connection with a facility

described in section 45(d)(3)(A), but only to the extent of

the increased amount of electricity produced at the facility

by reason of the new unit.

• Geothermal facility originally placed in service after

October 22, 2004, the construction of which begins before

2025. The facility doesn’t include any property described

in section 48(a)(3), the basis of which is taken into

account by you for purposes of determining the energy

credit under section 48.

• Effective for solar energy facilities placed in service

after 2021 for a facility using solar energy to produce

electricity originally placed in service after October 22,

2004, the construction of which begins before 2025. The

facility doesn’t include any property described in section

48(a)(3), the basis of which is taken into account by you

for purposes of determining the energy credit under

section 48.

• Landfill gas or trash facility using municipal solid waste

originally placed in service after October 22, 2004, the

construction of which begins before 2025.

• Hydropower facility producing incremental hydroelectric

production attributable to efficiency improvements or

additions to capacity described in section 45(c)(8)(B)

placed in service after August 8, 2005, that will be treated

as placed in service before 2025, if the construction of the

improvement or addition begins before 2025, and any

other facility producing qualified hydroelectric production

described in section 45(c)(8) placed in service after

August 8, 2005, the construction of which begins before

2025.

• Marine and hydrokinetic renewable energy facility

originally placed in service on or after October 3, 2008,

the construction of which begins before 2025.

A qualified facility doesn’t include the following:

1. A landfill gas facility using municipal solid waste to

produce electricity if the production from that facility is

allowed as a credit under section 45K.

2. A facility that produces electricity from gas

produced by qualified biogas property (as defined in

section 48(c)(7)) if a credit is allowed under section 48

with respect to this property for the tax year or any prior

tax year.

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Credit Period

Eligible electricity production

activity:

Credit period for facilities

placed in service after August

8, 2005 (years from

placed-in-service date):

Wind

10

Closed-loop biomass

10

Open-loop biomass (including

agricultural livestock waste

nutrient facilities)

10

Geothermal

10

Solar

10

Municipal solid waste (including

landfill gas facilities and trash

combustion facilities)

10

Qualified hydropower

10

Marine and hydrokinetic

10

United States and U.S. territories include the seabed

and subsoil of those submarine areas that are adjacent to

the territorial waters over which the United States has

exclusive rights according to international law.

Credit Reduced for Tax-Exempt Bonds

The credit is reduced by an amount that is the product of

the credit amount otherwise determined for the tax year

and the lesser of 15% or a fraction determined for the tax

year. The numerator of the fraction 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 of the fraction 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.

Who Can Take the Credit

Generally, the owner of the facility is allowed the credit. In

the case of closed-loop biomass facilities modified to

co-fire with coal, other biomass, or both, and open-loop

biomass facilities, if the owner isn’t the producer of the

electricity, the lessee or the operator of the facility is

eligible for the credit.

Increased Credit Amount for Qualified Facilities

In the case of any qualified facility that satisfies one of the

requirements below, the amount of the credit determined

will be equal to such amount multiplied by 5.

• A facility with a maximum net output of less than 1

megawatt (as measured in alternating current).

• A facility the construction of which began prior to

January 29, 2023.

• A facility that satisfies the prevailing wage and

apprenticeship requirements.

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Prevailing Wage and Apprenticeship

Requirements

Prevailing Wage Requirements

To meet the prevailing wage requirements with respect to

any qualified facility, a taxpayer must ensure that any

laborers and mechanics employed by the taxpayer or any

contractor or subcontractor in:

• The construction of such facility, and

• The alteration or repair of such facility (with respect to

any tax year, for any portion of such tax year that is within

the 10-year period beginning on the date the qualified

facility is originally placed in service), are paid wages at

rates not less than the prevailing rates.

Special correction and penalty mechanisms apply for a

taxpayer’s failure to satisfy the prevailing wage

requirements.

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); Notice 2022-61; T.D.

9998, available at IRS.gov/irb/2024-34_IRB#TD-9998,

and the Instructions for Form 4255, Certain Credit

Recapture, Excessive Payments, and Penalties.

Apprenticeship Requirements

The apprenticeship requirements include three

components: a labor hours requirement, a ratio

requirement, and a participation requirement.

• The taxpayer must ensure that, depending on when

construction began, 10% to 15% of the total labor hours

performed in the construction, alteration, or repair of the

facility are performed by qualified apprentices from a

registered apprenticeship program.

• The taxpayer must ensure that the applicable ratio of

apprentices to journeyworkers established by the

registered apprenticeship program are met for apprentices

working on the facility each day.

• Any taxpayer (or contractor or subcontractor) that

employs four or more individuals in the construction,

alteration, or repair of the facility must also hire at least

one qualified apprentice.

For more information on the prevailing wage and

apprenticeship requirements, including applicable

exceptions, see IRS.gov/PWAFAQ.

Domestic Content

For qualified facilities placed in service after 2022, an

additional bonus credit equal to 10% of the amount is

provided for projects that meet a domestic content

requirement. The domestic content bonus requires that

certain steel, iron, and manufactured products used in the

facility be domestically produced. The taxpayer needs to

certify that any steel, iron, or manufactured product that is

a component of the qualified facility (upon completion of

construction) was produced in the United States (as

determined under section 661 of Title 49, CFR). See

Notice 2023-38, available at IRS.gov/irb/

2023-22_IRB#NOT-2023-38 for more information about

the domestic bonus credit guidance, including the

Domestic Content Certification Statement.

Instructions for Form 8835 (2025)

Increased Credit in Energy Communities

Energy community. In the case of any qualified facility

that is located in an energy community, the amount of the

credit with respect to any electricity produced by the

taxpayer at such facility is increased by 10%. Energy

community means:

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 non-metropolitan

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 previous year (as

determined by the Secretary);

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; or

4. For tax years beginning after July 4, 2025, for

purposes of any qualified facility that is an advanced

nuclear facility, a metropolitan statistical area that has (or

at any time after 2009, had) 0.17% or greater direct

employment related to the advancement of nuclear power,

including:

a. An advanced nuclear facility;

b. Advanced nuclear power research and

development;

c. Nuclear fuel cycle research, development, or

production (including mining enrichment, manufacture,

storage, disposal, or recycling of nuclear fuel); and

d. The manufacturing or assembly of components

used in an advanced nuclear facility.

See section 45(b)(11)(C) for the definition of advanced

nuclear facilities.

See Notice 2023-29, available at IRS.gov/irb/

2023-29_IRB#NOT-2023-29; Notice 2023-45, available at

IRS.gov/irb/2023-45_IRB#NOT-2023-45; and Notice

2023-47, available at IRS.gov/irb/

2023-47_IRB#NOT-2023-47, for more information about

the energy community bonus credit guidance under

section 45. In addition, see Notice 2024-30, available at

IRS.gov/irb/2024-16_IRB#NOT-2024-30; and Notice

2024-48, available at IRS.gov/irb/

2024-26_IRB#NOT-2024-48, for more information.

Specific Instructions

Part I—Information on Qualified Property or

Qualified Facility

If you are claiming a production credit for a qualified facility

that uses qualified resources to produce electricity on Part

Instructions for Form 8835 (2025)

II, lines 1a–1j, you must complete Part I, Information on

Qualified Property or Qualified Facility.

Line 1

If applicable, enter your pre-filing registration number for

the facility that you received from the IRS. See Pre-filing

registration requirement for payments or transfers, earlier.

Lines 2a and 2b

Enter a technical description of the facility or property that

is an integral part of such facility that uses qualified

resources to produce electricity. If the owner of the facility

is different from the filer, also include the owner’s name

and taxpayer identification number.

Lines 3a and 3b

Enter the address of the facility on line 3a. Enter the

coordinates of the facility or property (longitude and

latitude) on line 3b.

Line 4

Enter the date construction began.

Line 8

Applies to facilities placed in service after December 31,

2021.

Check the appropriate box on line 8 and attach the

required information to your timely filed return (including

extensions) to claim the increased credit amount for the

qualified facilities. You must attach a separate statement

for each qualified facility.

Additional information for claiming the increased

credit amount. If you checked the “Yes” box in Part I,

question 8a, 8b, or 8c, and entered an increased credit

amount on Part II, line 9, you must also attach a statement

to Form 8835 that includes the following information.

1. Your name and taxpayer identification number and

the facility description (including owner information, if

different from filer) and the IRS-issued registration number

(if applicable) from Part I.

2. If you checked box 8a, a statement that the facility

or property has a maximum net output of less than 1

megawatt (as measured in alternating current).

3. If you checked box 8b, a statement that you met the

Continuity Requirement under the Physical Work Test or

the Five Percent Safe Harbor to establish the beginning of

construction (alteration or repairs) before January 29,

2023.

4. If you checked box 8c, include the following.

a. Form 7220, Prevailing Wage and Apprenticeship

(PWA) Verification and Corrections. File a separate Form

7220 for each facility you are claiming an increased

amount of credit. For example, if you filed three Forms

8835 with increased credit amounts for satisfying certain

PWA requirements, you must submit three Forms 7220.

For more information, see the Instructions for Form 7220.

b. If you’re claiming the increased credit amount and

checked the “Yes” box in Part I, question 8a or 8b, you’re

not required to file Form 7220. For more information, see

T.D. 9998, available at IRS.gov/irb/

2024-34_IRB#TD-9998.

5

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

If you checked line 9a to claim the domestic content

bonus credit amount on Part II, line 10, you must also

attach the domestic content certification statement below

to Form 8835 with your return.

See Domestic Content and Notice 2023-38, available

at IRS.gov/irb/2023-22_IRB#NOT-2023-38, for guidance

with respect to the domestic content requirement.

Domestic Content Certification Statement

You must attach a statement to Form 8835 for each

Applicable Project in the year placed in service and a copy

of the certification statement in each of the succeeding tax

years. The certification statement must include the

following information for the Applicable Project.

1. Your name and taxpayer identification number

shown on the return.

2. The facility description (including owner information,

if different from filer) and the IRS-issued registration

number (if applicable) of the Applicable Project from Part I.

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,

CFR).

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, 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

Section 45(b)(11) provides an energy community bonus

credit amount for a qualified facility by increasing the

credit amount by 10% if the qualified facility is located in

an energy community.

See Increased Credit in Energy Communities, earlier,

and Notice 2023-29, available at IRS.gov/irb/

2023-29_IRB#NOT-2023-29; Notice 2023-45; and Notice

2023-47 for details and more information.

Part II—Renewable Electricity Production

Figure any renewable electricity credit from your trade or

business on Part II, lines 1–13. Skip lines 1–13 if you are

only claiming a credit that was allocated to you from an S

corporation, partnership, cooperative, estate, or trust.

Fiscal year taxpayers. If you have sales in 2025 and

2026 and the credit rate on line 1 (or the phaseout

6

adjustment on line 3) is different for 2026, make separate

calculations for each line. Use the respective sales, credit

rate, and phaseout adjustment for each calendar year.

Enter the total of the calculation on the credit rate line

(line 1) or the phaseout adjustment line (line 3). Attach the

calculations to Form 8835 and write “FY” in the margin.

Line 1

Enter the kilowatt-hours of electricity produced at the

applicable qualified facilities and multiply by the applicable

rate. See Credit rates, earlier. Fiscal year filers with 2026

sales may have to refigure line 1, as explained under

Fiscal year taxpayers above.

Line 3

Calendar year filers enter -0- on line 3. Fiscal year filers

with sales in 2026 also enter -0- if the published 2026

reference price is equal to or less than the 2026 adjusted

threshold price. See How To Figure the Credit, earlier, to

figure the adjustment.

Lines 5a–5d

The amounts for any tax year will be determined as of the

close of the tax year. The credit reduced for tax-exempt

bonds, as described earlier, reflects IRA 2022

amendments applicable to facilities, whose construction

began after August 16, 2022.

Line 9

If you checked the line 8a, 8b, or 8c box in Part I, multiply

the amount on Part II, line 8, by 5.0. See Additional

information for claiming the increased credit amount,

earlier.

Line 10

If you checked the line 9a box in Part I, multiply the

amount on Part II, line 9, by 10%. See Domestic Content

Certification Statement, earlier.

Line 11

If you checked the line 10a box in Part I, multiply the

amount on Part II, line 9, by 10%. See Increased Credit in

Energy Communities, earlier.

Line 13

Elective payment phaseout for applicable entities. If

you are making an elective payment election under

section 6417 for a facility whose construction began in

calendar year 2024, and the facility does not conform to

section 45(b)(10)(B) (that is, it doesn't satisfy the rules of

section 45(b)(9)(B) and doesn't have a maximum net

output of less than 1 megawatt (as measured in

alternating current)), or if the facility does not meet an

exception under section 45(b)(10)(D), multiply line 12 by

90% (0.90).

Exception to elective payment phaseout. For

facilities whose construction began during calendar year

2024, Notice 2024-09 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 8835. The statement must say, under

Instructions for Form 8835 (2025)

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.

Line 14

On a separate Form 8835. enter “Credits From

Pass-Through Entities” on line 2a of Part I and report your

total distributive share of the renewable electricity

production credit from partnerships, S corporations,

estates, and trusts from:

• Schedule K-1 (Form 1065), Partner’s Share of Income,

Deductions, Credits, etc., box 15 (code AB);

• Schedule K-1 (Form 1120-S), Shareholder’s Share of

Income, Deductions, Credits, etc., box 13 (code AB);

• Schedule K-1 (Form 1041), Beneficiary’s Share of

Income, Deductions, Credits, etc., box 13 (code J); and

• Form 1099-PATR, Taxable Distributions Received From

Cooperatives, box 12.

Enter this amount on line 14.

If the only credit allocated to you is the renewable

electricity production credit, don’t report the credit on

Form 8835. Instead, report the credit directly on Form

3800, Part III, line 1f or 4e, as applicable. But see the

Caution next.

Caution: If you receive a Schedule K-1 (Form 1065),

box 15, code BC; or a Schedule K-1 (Form 1120-S),

box 13, code BC, see Transferees of Eligible Credits

Under Section 6418 in the Instructions for Form 3800.

Line 15

Partnerships and S corporations. If you are a(n)

partnership or S corporation electing to transfer a

renewable electricity production credit with respect to a

qualified facility (or portion thereof) under section 6418(c),

you must report the total credit amount with respect to

your facility on Form 3800, Part III, line 1f or 4e, and not on

Schedule K.

Line 16

Cooperative election to allocate credit to patrons. A

cooperative described in section 1381(a) that is more than

50% owned by agricultural producers or by entities owned

by agricultural producers can elect to allocate any part of

the credit among the patrons of the cooperative. The

credit is allocated among the patrons eligible to share in

patronage dividends on the basis of the quantity or value

of business done with or for such patrons for the tax year.

If the cooperative is subject to the passive activity rules,

include on line 14 any renewable electricity credit from

Instructions for Form 8835 (2025)

passive activities disallowed for prior years and carried

forward to this year. Complete Form 8810, Corporate

Passive Activity Loss and Credit Limitations, to determine

the allowed credits that can be allocated to patrons. For

details, see the Instructions for Form 8810.

The cooperative is deemed to have made the election

by completing line 16, as applicable. However, the

election isn’t effective unless (a) made on a timely filed

return (including extensions), and (b) the organization

designates the apportionment in a written notice mailed to

its patrons during the payment period described in section

1382(d) or on Form 1099-PATR.

If you timely file your return without making an election,

you can still make the election by filing an amended return

within 6 months of the due date of the return (excluding

extensions). Enter “Filed pursuant to section 301.9100-2”

on the amended return.

Once made, the election can’t be revoked.

Estates and trusts. Allocate the credit on line 15

between the estate or trust and the beneficiaries in the

same proportion as income was allocated and enter the

beneficiaries’ share on line 16.

If the estate or trust is subject to the passive activity

rules, include on line 14 any renewable electricity credit

from passive activities disallowed for prior years and

carried forward to this year. Complete Form 8582-CR,

Passive Activity Credit Limitations, to determine the

allowed credit that must be allocated between the estate

or trust and the beneficiaries. For details, see the

Instructions for Form 8582-CR.

Paperwork Reduction Act Notice. We ask for you to

obtain the information on this form to carry out the Internal

Revenue laws of the United States. You are required to

obtain this information. You aren’t required to obtain 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 Internal

Revenue Code section 6103. The time needed to

complete and file this form will vary depending on

individual circumstances. The estimated burden for

individual filers is approved under OMB control number

1545-0074, business filers is approved under OMB

control number 1545-0123, and trust filers is approved

under OMB control number 1545-0092, for the estimated

averages, see the instructions for your income tax return.

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.

7