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

To generate the 3468 in the 1065 return:

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. Entering an incorrectly formatted number number will generate diagnostic ref 59592.
   • 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.

The Elective Payment option applies to certain energy-related credits beginning in {TY25}. If you’re claiming an elective payment on Form 3800, the IRS requires a registration number before filing the return. Entering an invalid number will generate diagnostic ref. 59592. For details, see the IRS Elective Payment and Credit Transfer registration page.

To generate the 3468 in the 1120S return:

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 Partnership 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.

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 automatically flows from Form 3468 to Form 3800, and then to Form 1040, Schedule 3, line 6a.
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.