If your 2023 tax return form is not available at the time you are required to file a return for a short tax year that begins in 2023 and ends before December 31 2023, you must file that 2023 return using the 2022 tax return form and made all necessary modifications taking into account all tax law changes effective for tax years beginning after 2022. These supplemental instructions explain how to elect and report payment or transfer of any carbon oxide sequestration credit under section 6417 and 6418. Section 6417 Elective Payment for Carbon Oxide Sequestration Credit Reported in Form 8933, Line 15 If properly elected by completing and attaching additional information to a version of Form 3800, Part III, noted as "IRA22DPE," an "applicable entity" as described in section 6417(d)(1)(A) (generally, a tax-exempt entity) and section 6417(d)(1)(C) with a short tax year beginning after December 31, 2022, and ending before December 31, 2023, may treat the carbon oxide sequestration credit for new equipment reported in Form 8933, Part III, lines 4c, 5c, 6c, 7c, 8c, and 9c (if any) as an elective or deemed payment of taxes under section 6417. The carbon oxide sequestration credit attributable to equipment originally placed in service at a facility after 2022 is deemed to be allowed to the applicable entity for the short tax year. See the supplemental Instructions for Form 8933, line 15 below and the latest Instructions for Form 3800, Part III, posted at IRS.gov/Form3800. An applicable entity as described in section 6417(d)(1)(A) includes: any organization exempt from the tax imposed by subtitle A; any State or political subdivision thereof; the Tennessee Valley Authority; an Indian tribal government (as defined in section 30D(g)(9)); any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 20 1602(m)); or any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas. If you are a section 6417(d)(1)(A) applicable entity required to file an annual information return, you must file Form 990-T, "Exempt Organization Business Income Tax Return" and attach a completed Form 8933 and Form 3800 to elect payment for carbon oxide sequestration credit. If youare a section 6417(d)(1)(A) applicable entity for which no return is required under section 6011 or 6033(a), the IRS will issue future guidance concerning the appropriate time and manner for you to treat your carbon oxide sequestration credit as an elective or deemed payment under section 6417. Any taxpayer not described in section 6417(d)(1)(A) may elect to be treated as an applicable entity for an elective payment, but only for the section 45Q(a) carbon oxide sequestration credit for new equipment under section 6417(d)(1)(C). If you are an applicable entity with taxable income or "Unrelated business taxable income" (as defined in section 512) related to new equipment, your elective payment amount is the lesser of the amount of credit or any unused credit amount. The term "unused credit amount" is any amount not allowed as a general business credit against the tax imposed on your taxable income for the tax year. If elected, your credit is reduced to zero and deemed allowed to you for the tax year. . See "Credit Ordering Rule" in the Instructions for Form 3800. If you are an applicable entity under section 6417(d)(1)(A), your election applies for your 2023 short tax year and any subsequent tax year during the 12-year period described in section 45Q(a)(3)(A) or (4)(A) with respect to such equipment. You must still satisfy all requirements under section 45Q to otherwise earn the credit in each of succeeding years. If youare a partnership or S corporation, you may also elect to treat any credit for carbon oxide sequestration as an elective payment under section 6417(c)(1). You must file your appropriate return and attach a completed Form 8933 and a version of Form 3800, Part III, noted as IRA22DPE, to properly elect any carbon oxide sequestration credit as a payment for your short tax year. If you make the election for payment under section 6417(d)(1)(C) or section 6417(c), you may not make the election for credit transfer under section 6418(a) for the same credit. Your election for payment for the new equipment applies for the short tax l year and the 4 subsequent tax years for such equipment (unless you revoke your election). You must still satisfy all requirements under section 45Q to otherwise earn the credit in each of the succeeding years. For the latest information about developments related to Form 8933 and its instructions, such as regulations, go to IRS.gov/form8933. Section 6418 Transfer of Carbon Oxide Sequestration Credit Reported in Form 8933, Line 15 If properly elected by completing and attaching additional information to a versions of Form 3800, Part III, noted as "IRA22TRE," an "eligible taxpayer," defined as any entity not described in section 6417(d)(1)(A), including partnerships and S corporations, may elect under section 6418 to transfer of its carbon oxide sequestration credit for new or existing equipment (of any portion of) to an unrelated "transferee taxpayer" for cash in 2023 short tax year. The cash payment received by the eligible taxpayer is not treated as taxable income, and the cash paid by the transferee taxpayer cannot be deducted against taxable income. If elected, your current general business credits are reduced by the transferred amount. The transferee taxpayer is treated as the taxpayer for such credit (or such portion thereof). Once a credit is transferred to an unrelated party, the unrelated party can't transfer it again. See the latest Instructions for Form 8933, line 15, below and the latest Instructions for Form 3800, Part III. If you are a transferee taxpayer which acquired the carbon oxide sequestration credit for new equipment (or any portion of) from an eligible taxpayer, see the latest Instructions for Form 3800 to take into account your acquired credit. You are not required to complete the source credit form. For the latest information about developments related to Form 3800 and its instructions, go to IRS.gov/form3800. Additional Line 15 Instructions for Certain Filers With 2023 Short Tax Years to Elect Payment or Transfer of Carbon Oxide Sequestration Credit If you do not or cannot elect payment or transfer of any carbon oxide sequestration credit (or portion, in case of transfer), follow the reporting instructions for Form 8933, line 15. If you're an applicable entity as defined under section 6417(d)(1)(A) or 6417(d)(1)(C) and elect to treat any carbon oxide sequestration credit amount for new equipment on Form 8933, lines 4c, 5c, 6c, 7c, 8c, and 9c (if any) as a payment for your short tax year, you must report the lesser of the credit amount for the new equipment or any unused credit amount in Line 1x of a versions of Form 3800, Part III, noted as "IRA22DPE." You must also attach additional information to Form 3800, Part III, Line 1x. For latest instructions for Form 3800, go to IRS.gov/form3800. If you are a partnership or S corporation and you elect payment for any carbon oxide sequestration credit under section 6417(c), you must report the amount for new equipment in Line 1x of a versions of Form 3800, Part III, noted as "IRA22DPE." You must not include any elected payment reported on Form 3800, Part III, on Schedules K and K-1. If you are an eligible taxpayer, including partnership or S corporation, and elect to transfer any carbon oxide sequestration credit for new or existing equipment (or portion of) in Form 8933, lines 1c, 2c, 3c, 4c, 5c, 6c, 7c, 8c, 9c, and 13f, you must report the transfer amount of carbon oxide sequestration credit for new or existing equipment in Line 1x of a version of Form 3800, Part III, noted as "IRA22TRE." You must also additional information to Form 3800, Part III, Line 1x. See the latest instructions for Form 3800 at IRS.gov/form3800. If you are a partnership or S Corporation and elected to transfer any carbon oxide sequestration credit under section 6418, the amount reported on Schedules K and K-1 should not include any transferred amounts reported in Line 1x of a version of Form 3800, Part III, noted as "IRA22TRE".
