Instructions for Form 8835, Renewable Electricity, Refined Coal, and Indian Coal Production Credit

• Legal Form Number: 8835
• Year: 2023
• Issuer: Treasury Department
• Section: Treasury Department

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2023

Instructions for Form 8835

Renewable Electricity Production Credit

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue Code

unless otherwise noted.

Future Developments

For the latest information about developments related to

Form 8835 and its instructions, such as legislation

enacted after they were published, go to IRS.gov/

Form8835.

What’s New

Credit amounts. The Inflation Reduction Act of 2022

(IRA 2022) changed the manner in which section 45 credit

amounts are calculated on the sale of electricity produced

in any qualified facility placed in service after December

31, 2021. For more information, see Notice 2023-51,

available at IRS.gov/irb/2023-30_IRB#NOT-2023-51.

Credit reduced for tax-exempt bonds. Section 45(b)(3)

modifies the credit rate reduction for grants, subsidized

energy financing, and other credits, and changes the

computation. See Credit Reduced for Tax-Exempt Bonds,

later.

Clean hydrogen production credit. This credit has

been removed from this form and will now be claimed on

Form 7210, Clean Hydrogen Production Credit. See the

Instructions for Form 7210 for more information.

Facility information. Form 8835 and its instructions

were changed to require separate information and

computation of the renewable electricity production credit

for each facility. See Facility Information, later.

Offshore wind facility. The electricity produced at a

qualified offshore wind facility will be claimed on line 1e.

Tax-exempt and governmental entities. For tax years

beginning after 2022, applicable entities (such as certain

tax-exempt and governmental entities) can elect to treat

the renewable electricity production credit as a payment of

income tax. See Applicable entities, later.

Credit transfers. For tax years beginning after 2022,

eligible taxpayers, partnerships, and S corporations can

elect to transfer all or part of the credit amount otherwise

allowed as a general business credit to an unrelated

third-party buyer in exchange for cash. Eligible taxpayers

don't include applicable entities. See Credit transfers,

later.

Pre-filing registration. The IRS has established a

pre-filing registration process that must be completed prior

to electing payment or transfer of the renewable electricity

production credit. See Pre-filing registration requirement

for payment or transfer, later.

Reminders

Inflation Reduction Act of 2022 (IRA 2022). IRA 2022

made several changes to the renewable electricity

production credit.

•Extended and modified the existing production credit for

applicable renewable energy. Form 8835 will be used by

filers to claim the section 45 credit for existing and new

facilities.

•Solar energy facilities placed in service after 2021 are

reinstated as eligible for the credit.

•Facilities satisfying the Prevailing Wage and

Apprenticeship Requirements, Domestic Content Bonus

Credit Amount requirements, and Energy Community

requirements are eligible to increase the credit.

Expired credits. The credit period for refined coal

produced at a refined coal production facility and Indian

coal produced at an Indian coal production facility expired

after 2021. Accordingly, the title of Form 8835 has been

changed to “Renewable Electricity Production Credit.”

General Instructions

Purpose of Form

Use a separate Form 8835 to claim the credit for electricity

that you produced from certain renewable resources at

each qualified facility. Complete Part I to report facility

information. Complete Part II to calculate the credit. The

credit is allowed only for the sale of electricity produced in

the United States or U.S. territories from qualified energy

resources at a qualified facility.

Taxpayers, applicable entities, partnerships, and S

corporations must file a separate form for each qualified

facility that is used in your trade or business to claim the

credit. All others are generally not required to complete or

file this form if their only source for this credit is from a

partnership, S corporation, estate, trust, or cooperative.

Instead, they can report their share of the credit directly on

Form 3800, General Business Credit. The following

exceptions apply.

•You are an estate or trust and the source credit can be

allocated to beneficiaries. For more details, see the

instructions for Form 1041, Schedule K-1, box 13, code J.

•You are a cooperative and the source credit can or must

be allocated to patrons. For more details, see the

instructions for Form 1120-C, Schedule J, line 5c.

Election To Treat a Qualified Facility as Energy

Property

Section 48(a)(5) provides an irrevocable election to treat

qualified property (described in section 48(a)(5)(D)) that is

part of a qualified investment credit facility (described in

section 48(a)(5)(C)) as energy property eligible for the

investment credit (reported on Form 3468, Investment

Credit, Part VI) instead of a production credit reportable

on this form. This election applies to a facility:

•That is a qualified facility under section 45(d)(1), (2),

(3), (4), (6), (7), (9), or (11) that is placed in service after

2008 and the construction of which begins before 2025.

See Construction of a Qualified Facility, later;

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