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Filing a 1065 for a partnership that installed solar in 2025 (construction began 4/15/2025, placed in service 7/24/2025) on their commercial property rooftop. Since construction began after 12/31/2024, this falls under §48E (Part V, Section A), not §48 (Part VI).
Entered $139,253 in Part V Section A (basis of qualified investment). Part I is fully completed — Q7 checked Yes (under 1 MW AC, 64 kW), Q8 Not Applicable, Q9/Q10/Q11 all No. Facility type entered as Solar.
Problem: Line 1b on Form 3468 Page 3 Part V is blank — no percentage is populating, so no credit is calculating. Tried checking various Part I line 2b options, no change.
Questions:
What input triggers the 30% rate in Part V Section A for a sub-1-MW solar facility?
Is this a known software bug with a fix pending?
Is manual override on line 1c the recommended workaround in the meantime?
Using Lacerte 2025, latest update installed.
Best Answer Click here
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I am not 100% sure it is still this way with the revised Solar credit, but I don't think the credit is calculated on the 1065. The BASIS of the energy property is passed through to the 1040, and the credit is calculated on the 1040. At least that is how it has worked in prior years.
See the Instructions for Box 20, Code "E".
https://www.irs.gov/instructions/i1065#en_US_2025_publink1000100862
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The "Other items" Ctrl+E dropdown in Screen 22 is missing Code AV entirely (list jumps from AQ to AW). So passing basis through manually via K-1 line 20 is not currently possible that way.
What I found is that the standard Form 3468 approach (Screen 20, Part V Section A, §48E) actually does generate Code AV* STMT on the K-1 and prepares the support schedule framework — so the plumbing is there. The problem is that the credit percentage on Form 3468 Part V line 1b simply will not populate regardless of how Part I is completed (Q7 = Yes for under 1 MW, Q8 = Not applicable, all bonus credit questions = No). No percentage = no credit amount = nothing flows to Schedule K line 15 = nothing exports to the partner's 1040.
Has anyone successfully completed a solar ITC claim on a 2025 partnership return and gotten the credit percentage to calculate on Form 3468 Part V?
If so, what was the specific input that triggered it?
We're trying to determine if this is a pure software bug or if there's an input we're missing.
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Update: This is my second call to Lacerte support in one week on this issue. They have an open case number (15154257444) but could not confirm whether it has been escalated to the development team or give me an expected fix date.
For anyone else hitting this — call in and reference that case number. Ask specifically: "Has this been escalated to development as a confirmed software defect?" The more preparers calling in on the same issue the faster it gets prioritized. We are in peak tax season with filing deadlines approaching and every partnership with a 2025 solar install is affected by this bug. Lacerte needs to treat this as urgent.
Will update when resolved.
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RESOLVED – Workaround Found
Update for anyone following this thread. Intuit actually called me directly and we spent 1.5 hours troubleshooting this together — total time wasted between calls, research, and troubleshooting was 3-4 hours. Posting this so no one else goes through the same.
The credit does NOT calculate at the partnership level on the 1065. Here is exactly what happens in Lacerte:
The 1065 Form 3468 Part V Section A (§48E) does NOT pass any information through to the partner's 1040 — not the facility info, not the Part I questions, not the basis, not the credit amount
The K-1 will show the §48E indicator but nothing flows automatically into the 1040 input screens
Everything must be manually re-entered on each partner's personal return
The workaround — step by step on the 1040:
Go to General Business and Vehicle Credits
Select Investment Credit (Form 3468)
Manually re-enter all Part I facility information (address, dates, construction start, placed in service date)
Manually re-answer all Part I questions (Q7-Q11)
Manually calculate each partner's share of the qualified investment basis per their ownership percentage and enter it
Check Q7 Yes (under 1 MW) — the 30% rate populates automatically here
Credit calculates correctly at 30% of each partner's share of the basis ✓
The 1065 Form 3468 entry should remain in place for documentation and K-1 disclosure purposes. But nothing flows to the 1040 — plan on manual re-entry for every partner.
Hope this saves someone else the 3-4 hours we lost on this.
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I'm running into the same issue on a 1120-S. We can get the basis entered on Form 3468 but we can't get the 30% amount to populate. It is providing the information on Supplemental Forms to the K-1. I understand the "work around" on 1040, but was anyone able to get the 30% number to populate on the entity return?
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Nope, never got that % to populate on the 1065 form in our case. Once you fill out the form on personal, it will populate no problem, that what we experienced.
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I believe I've entered all of the correct info in the 1040, I still can't get the 30% to populate. This has been driving me insane.
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Did you ever get this resolved? I get a 10% credit instead of 30% which I think is incorrect
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Yes, after a lot of playing around I go the correct 30% to populate. Do you have your cost in Part VI: Section B for the Solar Energy Credit? If so, that is the issue. It should be entered in Part V for the Clean Electricity Investment Credit.
