Generating Form 3468, Investment Credit ProSeries

Table of contents:

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.

Available Sections

To generate the 3468 in a 1065 return starting in tax year 2023:

1. Open the Federal 1065 return.
2. Press F6 to bring up Open Forms.
3. Type 3468 and select OK.
4. Enter a description of the facility and select OK to open the 3468.
5. Complete Part 1 for each Facility.
   • Once the form is complete there is a QuickZoom in Part 1 to create another copy. Create one copy for each facility or property.
6. Scroll to the section for the credit needed and complete any applicable information.
7. ProSeries does not transfer the facility information to the partners. You must manually enter the required disclosures on the Schedule K and K-1. The credit amounts from Part II-VII will flow to the K-1 as supplemental information.
8. If you are transferring the credit or making a gross elective payment see How to enter information for Form 3800 in ProSeries on how to complete the 3800 Part III.

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

1. Open the Federal 1120S return.
2. Press F6 to bring up Open Forms.
3. Type 3468 and select OK.
4. Enter a description of the facility and select OK to open the 3468.
5. Complete Part 1 for each Facility.
   • Once the form is complete there is a QuickZoom in Part 1 to create another copy. Create one copy for each facility or property.
6. Scroll to the section for the credit needed and complete any applicable information.
7. ProSeries does not transfer the facility information to the shareholders. You must manually enter the required disclosures on the Schedule K and K-1. The credit amounts from Part II-VII will flow to the K-1 as supplemental information.
8. If you are transferring the credit or making a gross elective payment see How to enter information for Form 3800 in ProSeries on how to complete the 3800 Part III.

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To generate the 3468 in a 1040:

If the 3468 is from a passthrough K-1:

1. Open the Schedule K-1 Worksheet.
2. Scroll down to the Credits & credit recapture line.
3. Enter the Codes and Amounts from the K-1 received.
4. Select the QuickZoom to enter addtl info.
5. Enter the amount on the applicable line for Form 3468.

If the 3468 is not passed through from a K-1:

1. Open the Federal 1040 return.
2. Press F6 to bring up Open Forms.
3. Type 3468 and select OK.
4. Enter a description of the facility and select OK to open the 3468.
5. Complete Part 1 for each Facility.
   • Once the form is complete there is a QuickZoom in Part 1 to create another copy. Create one copy for each facility or property.
6. Scroll to the section for the credit needed and complete any applicable information.
7. If you are transferring the credit or making a gross elective payment see How to enter information for Form 3800 in ProSeries on how to complete the 3800 Part III.

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