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

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.
  • Note: This applies primarily to fiscal-year filers with tax years ending in 2025 (e.g., partnerships and S corporations filing Form 1065 or 1120-S). For calendar-year filers (primarily individuals filing Form 1040), this credit is generally available for property placed in service after December 31, 2024.
• 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:

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.