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

SOLVEDby Intuit44Updated 2 weeks ago

Table of contents:

To generate the 3468 in the 1065 return:
To generate the 3468 in the 1120S return:
To generate the 3468 in a 1040:

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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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. 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.

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

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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. 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.

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

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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.

You can input this information on Screen 34, General Business and Vehicle Credits of the Individual module of Lacerte. The credit flows from Form 3468 to Form 3800 to show on Form 1040.

For tax year 2023, Form 3800 is undergoing a major IRS rewrite that expands the form to 8 pages. This form is still in development, pending a future release. Form 1120S and 1065 filers that require Form 3800 may want to consider filing extensions.

New for tax year 2023:

  • Pre-filing registration requirement. If you intend to make an elective payment election and/or a transfer election on Form 3800, you must complete a pre-filing registration before you file your tax return.
  • Elective payment election. Beginning with tax year 2023, certain applicable entities and electing taxpayers can elect to treat certain IRA 2022 business credits as elective payments. Certain eligible taxpayers can elect to treat CHIPS 2022 credits as elective payments. Any overpayments may result in refunds.
  • Transferring credits. Taxpayers may make an election to transfer all or a portion of certain IRA 2022 credits.
  • See IRS instructions for 3800 for more information.

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