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

SOLVEDby IntuitUpdated 2 weeks ago

What's new for Form 3468 for tax year 2023:

For tax year 2023 the IRS has redesigned Form 3468 to support the provisions created by the Inflation Reduction Act of 2022 (IRA) and the Creating Helpful Incentives to Produce Semiconductors Act of 2022 (CHIPS). See the What's New section here for more information.

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

  1. From the Input Return tab go to Schedule K  Credits  Investment Credit
  2. 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.
  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 in 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.

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