
How to enter a solar energy credit for an S-Corporation, Form 3468 in ProConnect Tax
by Intuit•1• Updated 4 days ago
What's new for Form 3468 for tax year 2024:
- For tax years beginning after January 1, 2024, eligible filers can claim the clean electricity investment credit under section 48e in Part V.
- If you are claiming a rehabilitation credit and you completed Part VII, lines 1i or 1j, you also need to complete lies 1k(i) and 1k(ii). Both lines are now required.
- The IRS established a pre-filing registration process that must be completed prior to electing payment or transfer of the investment credit. You can register here.
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To generate the 3468 in the business return for tax year 2023 and newer:
- From the Input Return tab go to Schedule K ⮕ Credits ⮕ Investment Credit
- Under the Facility section select the facility you need to generate the credit for.
- Use the Add button to add as many Facilities or properties as needed.
- Complete Part 1 for each Facility or Property.
- Scroll down to Part VI Solar Energy Credits.
- Enter the amounts in the applicable field for basis of solar or energy property.
- Form 3468 doesn't generate in the S-Corporation return. Instead, the credit flows to the shareholder K-1 box 17V as a statement, and prints the credit information on the K-1, Supplemental Information.
Follow these steps to enter a solar energy credit in tax year 2022 and prior:
- If depreciable, enter the asset in Input Return ⮕ Ordinary Income ⮕ Depreciation (4562).
- Then go to Input Return ⮕ Schedule K ⮕ Credits ⮕ Schedule K Credits.
- Select the Investment & Research tab.
- In the Investment Credit (3468) section scroll to the Energy Credit subsection.
- Enter the amounts in the applicable field for basis of solar or energy property.
- Form 3468 doesn't generate in the S-Corporation return. Instead, the credit flows to the shareholder K-1 box 17V as a statement, and prints the credit information on the K-1, Supplemental Information.
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