Generating Form 3468, Investment Credit ProSeries

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. 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 information in the 1120S return 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.

New for Form 3800 for tax year 2023:

• If you intend to make an elective payment election or a transfer election on Form 3800, you must complete a pre-filing registration before you file your tax return. See here for more information.
• Elective payment election: Certain applicable entities and electing taxpayers can elect to treat certain IRA 2022 business credits, or 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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