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 alternative fuel vehicle refueling property credit under Section 6417 and 6418. Section 6417 Elective Payment for Alternative Fuel Vehicle Refueling Property Credit Reported in Form 8911, Line 7 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) with a short tax year beginning after December 31, 2022, and ending before December 31, 2023, may treat the alternative fuel vehicle refueling property credit amount reported on Form 8911, Line 7 as an elective or deemed payment of taxes under section 6417. The credit attributable to any single item is deemed to be allowed to the applicable entity for the short tax year. See the supplemental instructions for Form 8911, Line 7 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 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 8911 and Form 3800 to elect payment for the alternative fuel vehicle refueling property credit. 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 alternative fuel vehicle refueling property credit as an elective or deemed payment under section 6417. If you are an applicable entity with “Unrelated business taxable income” (as defined in section 512) in connection with any single item, 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 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 Alternative Fuel Vehicle Refueling Property Credit Reported in Form 8911, Line 7 If properly elected by completing and attaching additional information to a version 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 or sell all of its alternative fuel vehicle refueling property credit with respect to a single item (or 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 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 8911, Line 7 below and the latest instructions for Form 3800 at IRS.gov/form3800. If you are a transferee taxpayer which acquired the alternative fuel vehicle refueling property credit with respect to a single item (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 7 Instructions for Certain Filers With 2023 Short Tax Years to Elect Payment or Transfer of the Alternative Fuel Vehicle Refueling Property Credit If you do not or cannot elect payment or transfer of any credit with respect to any single item of qualified alternative fuel vehicle refueling property (or portion of, in case of transfer), follow the reporting instructions on Form 8911, Part II, Line 9. If you are an applicable entity as defined under section 6417(d)(1)(A) and elect to treat any credit with respect to any single item of qualified alternative fuel vehicle refueling property reported in Form 8911, Part II, Line 7 (lesser of Line 5c or Line 6) as an elective payment for your short tax year beginning in 2023, you must report the lesser of the credit amount with respect to a single item of property or any unused credit amount in Line 1s of a version of Form 3800, Part III, noted as “IRA22DPE”. You must also attach additional information to Form 3800, Part III, Line 1s. 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 credit with respect to any single item (or portion of) reported in Form 8911, Part II, Line 7 (lesser of Line 5c or Line 6), you must report the transfer amount of alternative fuel vehicle refueling property credit in Line 1s of a version of Form 3800, Part III, noted as “IRA22TRE”. You must also attach additional information to Form 3800, Part III, Line 1s. See the latest instructions for Form 3800 at IRS.gov/form3800. If you are partnership or S Corporation and elected to transfer any alternative fuel vehicle refueling property credit under section 6418, the amount reported on Schedules K and K-1 should not include any transferred amounts reported in Line 1s of a version of Form 3800, Part III, noted as “IRA22TRE.”
