Generating Form 3468, Investment Credit (1065, 1120-S, 1040) in Lacerte

Table of contents:

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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Available Sections

To generate the 3468 information in the 1065 return in tax year 2023:

1. From the Details tab, select Schedule K, then 20 Credits, then Investment Credit (3468) to open Screen 20.3.
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. Select the section for the credit needed and complete any applicable information.
5. If using the new Elective Payment option for tax year 2023 use the new Elective Payment fields.
   • If filing an elective payment on the Form 3800 the IRS requires a registration number that you must complete before filing the tax return. See here for more information.
   • The 3800 will only generate for S Corporate returns if an Elective Payment or Transfer is used.
6. Lacerte will include information related to Form 3468 with the Schedule K-1 with the partner/shareholder. This information is passed through to the individual taxpayer.

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To generate the 3468 information in the 1120S return in tax year 2023:

1. From the Details tab, select Schedule K, then 26 Credits, then Investment Credit (3468) to open Screen 26.7.
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. Select the section for the credit needed and complete any applicable information.
5. If using the new Elective Payment option for tax year 2023 use the new Elective Payment fields.
   • If filing an elective payment on the Form 3800 the IRS requires a registration number that you must complete before filing the tax return. See here for more information.
   • The 3800 will only generate for Partnerships if an Elective Payment or Transfer is used.
6. Lacerte will include information related to Form 3468 with the Schedule K-1 with the partner/shareholder. This information is passed through to the individual taxpayer.

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To generate the 3468 in a 1040:

1. Open the Individual return.
2. Go to Screen 34, General Business, Vehicle and Passive Activity Credits.
3. Select the Investment Credit (3468) section.
4. 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.
5. Complete Part 1 for each Activity.
6. Select the section for the credit needed and complete any applicable information.
7. The credit flows from Form 3468 to Form 3800 to show on Form 1040.
8. If using the new Elective Payment option for tax year 2023 use the new Elective Payment fields.
   • If filing an elective payment on the Form 3800 the IRS requires a registration number that you must complete before filing the tax return. See here for more information.

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