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8835

Form 8835

Renewable Electricity, Refined Coal, and Indian Coal Production Credit


PURPOSE OF THE FORM :


Use Form 8835 , to claim the renewable electricity, refined coal, and Indian Coal Production Credit. THe credit is allowed only for the sale of electricity, refined coal, or Indian Coal produced in the United States or U.S. possessions from Qualified energy resources at a qualified facility.

SECTION A : ELECTRICITY PRODUCED AT QAULIFIED FACILITIES PLACED IN SERVICE PRIOR TO OCTOBER 23, 2004.

Qualified Facility is any of the following facilities owned by the taxpayer and used to produce electricity (covered in section A ) or, in the case of coal production facilities , refined and Indian Coal (covered in section B ). The facilities are broken down by form section. If the taxpayer has credits from Qualified facilities placed in service PRIOR TO October 22 2004 complete section A first and then complete section B.
Section A includes:

  • Poultry waste facility placed in service after 12/31/99 and before 01/01/05.
  • Wind Facility placed in service after 12/31/93 and before 10/23/04.
  • Closed Loop biomass facility placed in service after 12/31/92 and before 10/23/04.

Line 1:
Enter the kilowatt hours of electricity produced and sold on line 1 inner box. The program multiplies the kilowatt hours by $0.02 rate and enters the result on line 1 outer.
Fiscal Year filers with 2008 sales may have to refigure the credit and for more details refer the instruction PDF.

Line 2:
Enter the phased adjustment hours and its rate of adjustment. The program calculates the phased adjustment amount by multiplying the hours entered with rate applicable entered on line 2.
Calendar year filers enter zero on line 2. Fiscal year filers with sales in 2008 also enter zero if the published 2008 reference price is equal to less than the 2008 adjusted threshold price.

Line 3:
The program subtracts line 2 from line 1 and enters the result on this line. This is the credit before reduction.

Line 4:
Enter the sum, for this tax year and all prior tax years, of:

  • Grants provided by the United States, a state, or political subdivision of a state for the project;
  • Proceeds of a tax exempt issue of state or local government obligations used to provide financing for the project;
  • Total of subsidized energy financing provided directly or indirectly under a federal, state or local program provided for the project; and
  • The amount of any federal tax credit allowable for any property that is part of the project.

Line 5:
Enter on this line the total of additions to the capital account for the project for this tax year and all other prior tax years.

Line 6:
The program divides line 4 by line 5 and enters the result on this line.

Line 7:
The program multiplies line 3 by line 6 result obtained and enters the result on this line.

Line 8:
The program subtracts line 7 from line 3 and enters the result on this line.

Line 9:
The amount on this line comes from schedule K-1P/S and schedule K-1ET line named Renewal electricity production credit (section A).

Line 10:
The program adds lines 8 and line 9 and enters the result on this line. This line is reported on appropriate line of FORM 3800.

Line 11 and line 12:
These lines are not applicable to Individuals.

SECTION B :ELECTRICITY AND REFINED COAL PRODUCED AT QUALIFIED FACILITIES PLACED IN SERVICE AFTER OCTOBER 22, 2004 , AND INDIAN CAOL PRODUCED AT FACILITIES PLACED IN SERVICE AFTER AUGUST 8, 2005.

Qualified Facility is any of the following facilities owned by the taxpayer and used to produce electricity (covered in section A ) or, in the case of coal production facilities , refined and Indian Coal (covered in section B ). The facilIties are broken down by form section. If the taxpayer has credits from Qualified facilities placed in service AFTER October 22 2004 for electricity and refined coal and Indian Coal produced at facilities placed in service after August 8, 2005 then complete section B.

Section B includes:

  • Wind facility placed in service after 10/22/04 and before 01/01/09.
  • Closed loop biomass facility placed in service after 10/22/04 and before 01/01/09.
  • Closed loop biomass facility modified to co-fire with coal or other biomass (or both), placed in service before 01/01/09. See section 45(d)(2).
  • Open loop biomass facility using cellulosic waste placed in service before 01/01/09.
  • Open loop biomass facility using the agricultural livestock waste placed in service after 10/22/04 and before 01/01/09 and the nameplate capacity rating is not less than 150 kilowatts.
  • Geothermal energy facility placed ins service after 10/22/04 and before 01/01/09.
  • Solar energy facility placed in service after 10/22/04 and before 01/01/06.
  • Small irrigation power facility placed in service after 10/22/04 and before 01/01/09.
  • Landfill gas or trash combustion facility using municipal solid waste placed in service after 10/22/04 and before 01/01/09.
  • A refined coal production facility originally placed in service after 10/22/04 and before 01/01/09.
  • Hydropower facility placed ins service after 08/08/05 and before 01/01/09.
  • Indian coal production facility placed in service before 01/01/09.

PART - I CURRENT YEAR CREDIT:

Line 1:
Enter the kilowatt hours of electricity produced and sold on line 1 inner box. The program multiplies the kilowatt hours by $0.02 rate and enters the result on line 1 outer.
Fiscal Year filers with 2008 sales may have to refigure the credit and for more details refer the instruction PDF.

Line 2:
Enter the kilowatt hours of electricity produced and sold on line 2 inner box. The program multiplies the kilowatt hours by $0.01 rate and enters the result on line 2 outer.
Fiscal Year filers with 2008 sales may have to refigure the credit and for more details refer the instruction PDF.

Line 3:
The program adds lines 1 and line 2 and enters the result on this line.

Line 4:
Enter the phased adjustment hours and its rate of adjustment. The program calculates the phased adjustment amount by multiplying the hours entered with rate applicable entered on line 4.
Calendar year filers enter zero on line 4. Fiscal year filers with sales in 2008 also enter zero if the published 2008 reference price ia equal to less than the 2008 adjusted threshold price.

Line 5:
The program subtracts line 4 from line 3 and enters the result on this line.

Line 6:
Enter the tons of refined coal produced and sold during 2007 from a qualified refined coal production facility and the program multiplies it with $5.877 and enters the result on this line .Fiscal Year filers with 2007 sales may have to refigure the credit and for more details refer the instruction PDF.

Line 7:
Enter the phased adjustment hours and its rate of adjustment. The program calculates the phased adjustment amount by multiplying the hours entered with rate applicable entered on line 7.
Calendar year filers enter zero on line 7. Fiscal year filers with sales in 2008 also enter zero if the published 2008 reference price ia equal to less than the 2008 adjusted threshold price.

Line 8:
The program subtracts line 7 from line 6 and enters the result on this line.

Line 9:
Enter the tons of Indian coal produced and sold from a qualified Indian coal facility on line 9 inner box and the program multiplies the line 9 inner box with $1.544 and enters the result on line 9.

Line 10:
The program adds lines 5 line 8 and line 9 and enters the result on this line.

Line 11:
Enter the sum, for this tax year and all prior tax years, of:

  • Grants provided by the United States, a state, or political subdivision of a state for the project;
  • Proceeds of a tax exempt issue of state or local government obligations used to provide financing for the project;
  • Total of subsidized energy financing provided directly or indirectly under a federal, state or local program provided for the project; and
  • The amount of any federal tax credit allowable for any property that is part of the project.

Line 12:
Enter on this line the total of additions to the capital account for the project for this tax year and all other prior tax years.

Line 13:
The program divides line 11 by line 12 and enters the result on this line.

Line 14:
If line 10 is greater than 0 then the program multiplies line 10 by 0.5 or line 13 result whichever is lower and enters the result on this line.

Line 15:
The program subtracts line 14 from line 10 and enters the result on this line.

Line 16:
Enter the thermal content of closed loop biomass used in the facilities.

Line 17:
Enter the thermal content of all fuels used in the facilities.

Line 18:
The program divides line 16 by line 17 and enters the result on this line.

Line 19:
Enter the kilowatt hours of electricity produced and sold on line 19 inner box. The program multiplies the kilowatt hours by $0.02 rate and enters the result on line 19 outer.
Fiscal Year filers with 2008 sales may have to refigure the credit and for more details refer the instruction PDF.

Line 20:
The program multiplies line 19 by line 18 and enters the result on this line.

Line 21:
Enter the phased adjustment hours and its rate of adjustment. The program calculates the phased adjustment amount by multiplying the hours entered with rate applicable entered on line 21.
Calendar year filers enter zero on line 21. Fiscal year filers with sales in 2008 also enter zero if the published 2008 reference price is equal to less than the 2008 adjusted threshold price.

Line 22:
The program subtracts line 21 from line 20 and enters the result on this line.

Line 23:
The amount on this line comes from schedule K-1P/S line named Renewal electricity production credit (section B).

Line 24:
The program adds lines 15 , line 22 and line 23 and enters the result on this line.

Line 25:
Enter on this line the amount included on line 24 that is from a passive activity. Generally, A passive activity is a trade or business in which the taxpayer did not materially participate. Rental activities are generally considered passive activities whether or not the taxpayer materially participates.
For more details refer Form 8582CR and FORM 8810.

Line 26:
The program subtracts line 25 from line 24 and enters the result on this line.

Line 27:
Enter the passive activity credit allowed for the 2007 renewable electricity, refined coal , and Indian coal production credit from FORM 8582CR or FORM 8810.

Line 28:
Enter on line 28 inner box any FORM 8884 carry forward credit which you want to include here .
ON line 28 outer enter the amount manually which should include this amount for taking any cary forward credit.

Line 29:
Enter on this line if the taxpayer has amended his 2007 return to carry back an unused renewable electricity, refined coal, and Indian coal Production credit from 2008.

Line 30:
If the taxpayer has claimed the credit on FORM 6478 then the program will enter the current year credit amount from FORM 6478 line 11 on line 30 inner box.
On line 30 outer the program will add the line 30 inner box amount to the total of line 26 through 29 and enter the result on this line.

Line 31 and line 32:
These lines are not applicable to Individuals.

PART - II ALLOWABLE CREDIT:


Line 33:
The amount on this line comes from FORM 1040 line 44 (tax) or FORM 1040NR line 41(tax).

Line 34:
The amount on this line comes from FORM 6251 line 35 (alternative Minimum Tax).

Line 35:
The program adds line 33 and line 34 and enters the result on this line.

Line 36a:
The amount on this line comes from FORM 1040 :
total of line 47 (child and dependent care benefits), line 48 ( credit for elderly and disabled) , line 49 (education credits), Line 50 (residential energy credits) , line 52 (child tax credit) , line 53 ( Retirement savings contribution credit) , line 54 ( form 8396 line 13) , (form 8859 line 13) , (form 8839 line 18) .
OR from FORM 1040NR:
total of line 44 (child & dependent care benefits) , line 45 (residential energy credits) , line 47 (child tax credit) , line 48 (retirement savings contribution credit) , line 49 ( form 8396 line 13) , (form 8859 line 13) , (form 8839 line 18) .

Line 36b:
The amount on this line comes from FORM 1040 line 51 (foreign tax credit) or FORM 1040NR line 46(foreign tax credit).

Line 36c:
The amount on this line comes from Form 8834 line 20 (qualified electric vehicle credit).

Line 36d:
The amount on this line comes from Form 8910 line 18 (Alternative Motor vehicle credit).

Line 36e:
The amount on this line comes from Form 8911 line 19 (Alternative Fuel vehicle Refueling property credit).

Line 36f:
The program adds line 36a through line 36e and enters the result here.

Line 37:
The program subtracts line 36f from line 35 and enters the result on this line. If the result is negative then it is set as zero.

Line 38:
The program subtracts line 36f from line 33 and enters the result on this line. If the result is negative then it is set as zero.

Line 39:
If line 38 is greater then $25000 then the program calculates 25% of Excess over $25000 and enters the result on this line.

Line 40:
The program subtracts line 39 from line 37 and enters the result on this line. If the result is negative then it is set as zero.

Line 41a:
The amount on this line comes from FORM 3800 line 19 (general business credit).

Line 41b:
The amount on this line comes from FORM 8844 line 26 (empowerment zone and renewal community employment credit).

Line 41c:
The amount on this line comes from FORM 5884 line 22 (work Opportunity credit).

Line 41d:
The amount on this line comes from FORM 6478 line 24 (allowable alcohol credit).

Line 41e:
The program adds line 41a through line 41d and enters the result here.

Line 42:
The program subtracts line 41e from line 40 and enters the result on this line. If the result is negative then it is set as zero.

Line 43:
The program enters the lower of line 30 or line 42 here and reports this amount on FORM 1040 line 55 or FORM 1040NR line 50.
The credit allowed for the current year must be applied in the following order.

  • Carry forward of the New York Liberty Zone Business employee credit.
  • Carry forward of the renewable electricity, refined coal and Indian coal Production credit from section B.
  • Current year credit from section B and any current year credit from FORM 6478.

If you cannot use all of the credits because of the tax liability limit, carry any unused current year credit back 1 year and then forward up to 20 years.

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