Partnership Form 3468 Investment Credit in ProConnect Tax

What's new for Form 3468 for tax year 2025:

• If your claiming the credit under 48C, 48C or under Section 48, you may need to file the new 7220 form by completing it on the IRS website and adding it as a PDF attachment.
• Part I, line 2b. This line was divided into two checkboxes and an entry space for the Department of Energy (DOE) control number. If you’re claiming a credit under Part V, Section A, complete Part I, line 2b, as applicable.
• Part IV, advanced manufacturing investment credit. For a taxpayer with a fiscal year ending in 2026, the advanced manufacturing investment credit is equal to 35% of the qualified investment for property placed in service after 2025.
• Part V, clean electricity investment credit. P.L. 119-21, commonly known as the One Big Beautiful Bill Act, has restricted material assistance from prohibited foreign entities, added restrictions related to prohibited foreign entities, and added a termination of the credit for wind or solar facilities placed in service after 2027 where the beginning of construction is after July 4, 2026.
• Part VI, energy credit. P.L. 119-21 has restricted the applicable percentage for certain qualifying geothermal energy property and certain qualifying solar energy property.
• Part VII, lines 1h and 1i. The transition rule under the rehabilitation credit in Part VII was removed.

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 1120S). 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.

To enter Investment Credit starting in tax year 2023:

1. From the Input Return tab, go to Schedule K ⮕ Credits ⮕ Investment Credit.
2. Select the tab for the facility you need to generate the credit for.
   • Use the + button to add as many Facilities or properties as needed.
3. Complete Part 1 for each Facility or Property.
4. Scroll down to the section for the credit needed and complete any applicable information.
5. ProConnect Tax will include information related to Form 3468 with the Schedule K-1 with the partner. This information is passed through to the individual taxpayer.

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