How to enter a solar energy credit for an S corporation, Form 3468 in ProConnect Tax

To generate the 3468 in the business return for tax year 2023 and newer:

1. Go to Input Return ⮕ Schedule K ⮕ Credits ⮕ Investment Credit.
2. Under the Facility section, select the facility you need to generate the credit for.
   • Select Add to add as many Facilities or properties as needed.
3. Complete Part 1 for each Facility or Property.
4. Scroll down to Part VI Solar Energy Credits.
5. Enter the amounts in the applicable field for basis of solar or energy property.
6. 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:

1. If depreciable, enter the asset by going to Input Return ⮕ Ordinary Income ⮕ Depreciation (4562).
2. Then go to Input Return ⮕ Schedule K ⮕ Credits ⮕ Schedule K Credits.
3. Select the Investment & Research tab.
4. In the Investment Credit (3468) section scroll to the Energy Credit subsection.
5. Enter the amounts in the applicable field for basis of solar or energy property.
6. 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.