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

by Intuit Updated 2 months ago

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

PartCredit
IFacility Information
IIQualifying Advanced Coal Project Credit and Qualifying Gasification Project Costs
IIIQualifying Advanced Energy Project Credit Under Section 48C
IVAdvanced Manufacturing Investment Credit Under Section 48D
VIGeothermal Energy Credit
VISolar Energy Credit
VIQualified Fuel Cell Property
VIQualified Microturbine Property
VICombined Heat and Power System Property
VIQualified Small Wind Energy Property
VIWaste Energy Recovery Property
VIGeothermal Heat Pump Systems
VIEnergy Storage Technology Property
VIQualified Biogas Property
VIMicrogrid Controllers Property
VIQualified Investment Credit Facility Property
VIClean Hydrogen Production Facilities as Energy Property
VITotals and Credit Reduction for Tax-Exempt Bonds
VIIRehabilitations Credit Under Section 47
Credit Transfers Out

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.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

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.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

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.

1040 filers using the new Credit transferred or Gross elective payment fields will receive Critical Diagnostic ref 60077 until the calculations are ready and may want to file extensions for the upcoming 4/15 deadline.

Back to Table of ContentsPCG_ASSET_spacer_11px.pngA black and white photo of a street light.

Lacerte Tax

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