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 make 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 for any renewable energy production credit reported on Form 8835 under section 6417 and section 6418. Section 6417 Elective Payment for Renewable Electricity Production Credit Reported in Form 8835, Lines 1 through 16 with respect to New Facilities If properly elected by completing and attaching additional information to Form 3800, Part III, notated as "IRA22DPE" an "applicable entity", as described in section 6417(d)(1)(A) (generally, a tax-exempt entity) with a short year beginning after December 31, 2022 and ending before December 31, 2023 may treat the renewable electricity production credit amount with respect to a qualified facility placed in service after 2022 as a deemed payment. The credit attributable to any qualified facility or property is deemed to be allowed to the applicable entity for the short tax year. See the supplemental instructions for Form 8835, Line 20 below and the latest instructions for Form 3800, Part III, posted at IRS.gov/form3800. Your election applies for your 2023 short tax year and any subsequent tax year during the 10-year period described in section 45(a)(2)(A)(ii) with respect to such facility. You must still satisfy all requirements under section 45 to otherwise earn the credit in each of the succeeding years. 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 which is required to file an annual information return, you must file a Form 990-T, "Exempt Organization Business Income Tax Return" and attach and complete Form 8835 and Form 3800 to make a deemed payment election for the renewable electricity production credit with respect to a new qualified facility, even if you are not otherwise required to file Form 990-T. If you are 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 the renewable electricity production credit as a deemed payment under section 6417. If you are an applicable entity with "Unrelated business taxable income" (as defined in section 512) in connection with the facility, your deemed payment amount is the lesser of the amount of credit with respect to the facility 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 current credit is reduced to zero and deemed allowed to you for the tax year. See "Credit Ordering Rule" in the Instructions for Form 3800. Section 6418 Transfer of Renewable Electricity Production Credit Reported in Form 8835, Lines 1 through 16 with Respect to New and Existing Facilities If properly elected by completing and attaching additional information to Form 3800, Part III, notated 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 or sell all of its renewable electricity production credit with respect to a new or existing qualified facility (or any portion of) to an unrelated `transferee taxpayer' for cash in a 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 amount of the transferred amount. The transferee taxpayer is treated as taxpayer with respect to 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 8835, Part III, Line 20 below and the latest instructions for Form 3800, Part III. If you are a transferee taxpayer which acquired the renewable electricity production credit with respect to a new or existing facility (or any portion of) from an eligible taxpayer, see the latest instructions for Form 3800, Part III, 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. Section 6417 Elective Payment for Credit for Clean Hydrogen Production Reported in Form 8835, Lines 6 and 8 If properly elected by completing and attaching additional information to Form 3800, Part III, notated as "IRA22DPE", an "applicable entity" as described in section 6417(d)(1)(A) (generally, a tax-exempt entity) and section 6417(d)(1)(B), with a short tax year beginning after December 31, 2022 and ending before December 31, 2023, may treat the clean hydrogen production credit reported in Form 8835, Lines 6 and 8 as an elective or deemed payment of taxes under section 6417. The credit for clean hydrogen produced at a qualified facility after 2022 is deemed to be allowed to the applicable entity for the short tax year. See the supplemental instructions for Form 8835, Line 20 below and the latest instructions for Form 3800, Part III, posted at IRS.gov/form3800. Any taxpayer not described in section 6417(d)(1)(A) may elect to be treated as an applicable entity for a deemed payment, but only with respect to the section 45V clean hydrogen production credit under section 6417(d)(1)(B). If you are an "applicable entity" with taxable income or "Unrelated business taxable income" (as defined in section 512) related to the facility, your deemed payment amount is the lesser of the amount of credit with respect to the facility 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 any subsequent tax years with respect to such facility. You must still satisfy all requirements to earn the clean hydrogen production credit with respect to such facility in each year. If you are a partnership or S Corporation, you may also elect to treat any credit for clean hydrogen production with respect to a facility as a deemed payment under section 6417(c). You must file your appropriate return and attach and complete Form 8835 and Form 3800 to properly elect any clean hydrogen production credit as a payment for your short tax year. If you make the election for payment under section 6417(d)(1)(B) or section 6417(c), you may not make the election for a credit transfer under section 6418(a) for the same credit. Your election for payment with respect to such facility applies for short tax years beginning in 2023 and the 4 subsequent tax years (unless you revoke your election). You must still satisfy all requirements under section 45V to otherwise earn the credit in each of the succeeding years. Section 6418 Transfer of Clean Hydrogen Production Credit Reported in Form 8835, Lines 6 and 8 If properly elected by completing and attaching additional information to Form 3800, Part III, notated as ."IRA22TRE", an "eligible taxpayer", including partnerships or S Corporations, may under section 6418 transfer or sell all or a portion of its clean hydrogen production credit with respect to a facility to an unrelated `transferee taxpayer' for cash in a 2023 short tax year. The cash payment received by the eligible taxpayer is not 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. Once a credit is transferred to an unrelated party, the unrelated party can't transfer it again. See the latest instructions for Form 8835, Part III, Line 20 below and the latest instructions for Form 3800, Part III. If you are a transferee taxpayer which acquired the clean hydrogen production credit with respect to a facility (or any portion of) from an eligible taxpayer, see the latest instructions for Form 3800, Part III, 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 20 Instructions for Certain Filers with 2023 Short Tax Years to Make a Deemed Payment Election or Transfer of the Renewable Electricity Production Credit and the Credit for Clean Hydrogen Production If you do not or cannot make a deemed payment election or transfer of any Renewable Electricity Production Credit or Credit for Clean Hydrogen Production (or portion of, in case of transfer), follow the reporting instructions on Form 8835, Line 20. If you are an applicable entity as defined under section 6417(d)(1)(A) and elect to treat any renewable electricity production credit amount on Form 8835, Line 20 as a deemed payment for your short tax year, you must report the lesser of the credit amount with respect to a facility or property or any unused credit amount on Form 3800, Part III, Line 4e, notated as "IRA22DPE". You must also attach additional information to Form 3800, Part III, Line 4e. See the latest instructions for Form 3800, at IRS.gov/form3800. If you are an applicable entity as defined under section 6417(d)(1)(A) or section 6417(d)(1)(B) and elect to treat any clean hydrogen production credit amount in the Form 8835, Line 20 amount as a deemed payment for your short tax year beginning in 2023, you must report the lesser of the credit amount with respect to a facility or property or any unused credit amount on Form 3800, Part III, Line 1f, noted as"IRA22DPE". You must also attach additional information to Form 3800, Part III, Line 1f. See the latest instructions for Form 3800, at IRS.gov/form3800. If you are partnership or S Corporation and make a deemed payment election for any clean hydrogen production credit under section 6417(c), you must report the amount with respect to a facility or property on Form 3800, Part III, Line 1f, notated as "IRA22DPE", even if you are not otherwise required to file Form 3800. You must not include any elective payment reported on Form 3800, Part III on Schedules K and K-1. If you are an eligible taxpayer, including partnerships and S Corporations, and elect to transfer any renewable electricity production credit (or portion of) reported in Form 8835, Lines 1 through 16, you must report the transfer amount of renewable electricity production credit with respect new or existing facilities on Form 3800, Part III, Line 1f or Line 4e, notated as "IRA22TRE". You must also attach additional information to Form 3800, Part III, Line 1f or Line 4e. See the latest instructions for Form 3800, at IRS.gov/form3800. If you are an eligible taxpayer, including partnerships and S Corporations, and elect to transfer any clean hydrogen production credit (or portion of) reported in Form 8835, Lines 6 and 8, you must report the transfer amount of clean hydrogen production credit with respect a facility on Form 3800, Part III, Line 1f, noted as"IRA22TRE". You must also attach additional information to Form 3800, Part III, Line 1f. See the latest instructions for Form 3800, at IRS.gov/form3800. If you are a partnership or S Corporation and elected to transfer all or any portion of renewable electricity production credit and clean hydrogen production credit under section 6418, the amount reported on Schedules K and K-1 should not include any transferred amounts reported on Form 3800, Part III, Line 1f or Line 4e.
