IRS Form 3800 - General Business Credit
Tax-exempt organizations that qualify for certain business credits can attach Form 3800 with their 990-T when
e-filing with Tax990.
Instructions for Form 3800 (General Business Credit)
- Updated November 04, 2024 - 2.00 PM - Admin, Tax990
IRS Form 3800, General Business Credit, allows businesses and certain tax-exempt organizations to claim various tax credits. If your organization is eligible to file Form 990-T, you may need to attach Form 3800 to claim these credits.
In this article, we'll explore everything you need to know about Form 3800 and when to file it with Form 990-T.
Table of Contents
What’s New in 2023 Form 3800?
The form has been redesigned to support the provisions of the Inflation Reduction Act of 2022 (IRA 2022) and the Creating Helpful Incentives to Produce Semiconductors Act of 2022 (CHIPS 2022). The form and instructions have also been revised to provide information concerning elective payment and transfer elections.
What types of tax credits can be claimed using Form 3800 when filing 990-T?
You can claim various types of business credits by filing Form 3800 based on the criteria established by the IRS. When filing 3800, you must attach the relevant tax form for the corresponding tax credit you are claiming.
- Form 3468, Part II, Qualifying Advanced Coal Project Credit and Qualifying Gasification Project Credit
- Form 7207, Advanced Manufacturing Production Credit
- Form 6765, Credit for Increasing Research Activities
- Form 3468, Part III, Qualifying Advanced Energy Project Credit Under Section 48C
- Form 8826, Disabled Access Credit
- Form 8835, Part II, Renewable Electricity Production
- Form 7210, Clean Hydrogen Production Credit
- Form 8820, Orphan Drug Credit
- Form 8874, New Markets Credit
- Form 8881, Part I, Credit for Small Employer Pension Plan Startup Costs (Including Employer Contributions)
- Form 8882, Credit for Employer-Provided Child Care Facilities and Services
- Form 8864, Biodiesel, Renewable Diesel, or Sustainable Aviation Fuels Credit
- Form 8896, Low Sulfur Diesel Fuel Production Credit
- Form 8906, Distilled Spirits Credit
- Form 3468, Part IV, Advanced Manufacturing Investment Credit Under Section 48D
- Form 8908, Energy Efficient Home Credit
- Form 8910, Alternative Motor Vehicle Credit
- Form 8911, Part II, Credit for Business/Investment Use Part of Refueling Property
- Form 8830, Enhanced Oil Recovery Credit
- Form 7213, Part II, Zero-Emission Nuclear Power Production Credit, Section 45U
- Form 3468, Part V, Investment Credit
- Form 8932, Credit for Employer Differential Wage Payments
- Form 8933, Carbon Oxide Sequestration Credit
- Form 8936, Part II, Credit for Business/Investment Use Part of New Clean Vehicles
- Form 8936, Part V, Credit for Qualified Commercial Clean Vehicles
- Form 8904, Credit for Oil and Gas Production From Marginal Wells
- Form 7213, Part I, Credit for Production From Advanced Nuclear Power Facilities, Section 45J
- Form 8881, Part II, Small Employer Auto-Enrollment Credit
- Form 8881, Part III, Military Spouse Participation Credit
- Form 8864, line 8
Specified Credits:
- Form 3468, Part VI, Energy Credit Under Section 48
- Form 5884, Work Opportunity Credit
- Form 6478, Biofuel Producer Credit
- Form 8586, Low-Income Housing Credit
- Form 8835, Part II, Renewable Electricity Production
- Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips
- Form 8900, Qualified Railroad Track Maintenance Credit
- Form 8941, Credit for Small Employer Health Insurance Premiums
- Form 6765, Credit for Increasing Research Activities
- Form 8994, Employer Credit for Paid Family and Medical Leave
- Form 3468, Part VII, Rehabilitation Credit Under Section 47
What information is needed to complete 3800?
Form 3800 requires the following key pieces of information which include
- Organization’s basic details
- Current Year Credit for Credits Not Allowed Against Tentative Minimum Tax (TMT)
- Allowable Credit
- Current Year General Business Credits (GBCs)
- Carryovers of General Business Credits (GBCs) or Eligible Small Business Credits (ESBCs)
- Breakdown of Aggregate Amounts
Steps to complete IRS Form 3800
Form 3800 (General Business Credit) consists of six parts. Here are step-by-step instructions for completing each part
Basic information about your organization
- Initially, you must enter your organization’s name as it appears on Form 990-T, along with your identification number
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Item A. Corporate Alternative Minimum Tax (CAMT) and Base Erosion Anti-Abuse Tax (BEAT):
Check ‘Yes’ if you are both an applicable corporation under section 59(k)(1) and an applicable taxpayer under section 59A(e). Otherwise, check ‘No’.
Part I - Current Year Credit for Credits Not Allowed Against Tentative Minimum Tax (TMT)
In this part, you have to determine the credits that are not allowed against tentative minimum tax (TMT).
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Lines 1 & 2:
Combine non-passive amounts from Part III, line 2, column (e) with column (g) for non-passive credits, and combine amounts from line 2, column (f) with column (g) for passive credits.
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Lines 3 & 4:
Enter the applicable passive activity credits for 2023, and report the carryforward of general business credit to 2023 (attaching a revised statement if needed).
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Lines 5 & 6:
Include any carryback from 2024, and finally, add lines 1, 3, 4, and 5 to determine the total
Part II - Allowable Credit
This part requires you to calculate the allowable credit.
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Line 7:
To calculate the regular tax before credits,
- Individuals should sum amounts from Form 1040, line 16, and Schedule 2.
- Corporations enter the amount from Form 1120, Schedule J, line 1.
- Estates and trusts use Form 1041, Schedule G.
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Lines 8- 10:
Determine the alternative minimum tax using Form 6251 for individuals, Form 4626 for corporations, and Schedule I for estates and trusts. Add lines 7 and 8, and enter the foreign tax credit, certain allowable credits, and their total.
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Line 11:
Calculate net income tax by subtracting allowable credits from the total regular tax.
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Line 12 & 13:
Calculate the net regular tax by subtracting credits from line 7 and total allowable credits from non-passive and passive activity credits.
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Line 14:
For tentative minimum tax, enter applicable amounts and find the greater value between lines 13 and 14.
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Lines 15 - 17:
Enter the greater of lines 13 or 14. Subtract line 15 from 11 and enter the value lines 6 or 16, whichever is smaller.
If there has been an ownership change, acquisition, or reorganization refer to line 17 instructions.
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Lines 18 - 37:
Complete the computations as provided to find the credit allowed for the current year. You also need to enter the allowed credits for empowerment zone and renewal community employment, general business credit, passive activity credit, and any carryforward or carryback of business credits.
Note:
If you do not need to report any amounts on line 22 or line 24, skip lines 18 through 25 and enter -0- on line 26.
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Line 38:
Enter the acquired credit values on the appropriate line for individuals, corporations, or estates and trusts.
Part III - Current Year General Business Credits (GBCs)
This part requires you to calculate the allowable credit.
Note:
If you have multiple credit amounts to report on lines 1a through 1zz, line 3, or lines 4a through 4z, enter the total number of items for that line in column (c) and complete Part V.
This part comprises a table where you need to enter the following information for the applicable forms, including:
- Elective payment or transfer registration number
- Pass-through or transfer credit entity EIN
- Credits from non-passive activities
- Credits from passive activities
- Credit transfer election amount (enter amounts transferred out as a negative amount)
- Gross elective payment election amount
- Net elective payment election amount
Part IV - Carryovers of General Business Credits (GBCs) or Eligible Small Business Credits (ESBCs)
This part also comprises a table where you have to report the information regarding the carryovers of General Business Credits (GBCs) or Eligible Small Business Credits (ESBCs) for the applicable forms such as,
- Indicate whether the credit is non-passive or not
- Pass-through entity EIN
- Credit carrybacks to the current year
- Carryforwards (excluding ESBCs)
- Eligible small business credit(ESBC) carryforwards
Part V - Part V Breakdown of Aggregate Amounts on Part III for Facility-by-Facility, Multiple Pass-Through Entities, etc.
In this part, you need to provide a comprehensive breakdown of the aggregate amounts in Part IV. Here, you’ll be required to enter the following details:
- Line number from Part III
- Elective payment or transfer registration number
- Pass-through or transfer credit entity EIN
- Current year credits from non-passive activities
- Current year credits from passive activity before passive activity credit limitation
- Credit transfer election amount
- Gross elective payment election amount
- Net elective payment election amount
- Carryover of passive activity credit allowable in the current year
Part VI Breakdown of Aggregate Amounts in Part IV (see instructions)
This part also requires the breakdown of the aggregate amounts entered in Part IV, which includes:
- Line number from Part IV
- Indication for non-passive credit
- Year
- Pass-through entity EIN
- Credit carrybacks to the current year
- Carryforwards (excluding ESBCs)
- Eligible small business credit (ESBC) carryforward
Make Your Form 3800 Filing Simple and Quicker With Tax 990!
Tax 990, an IRS-authorized e-file provider, offers a range of helpful features that allow you to attach your Form 3800 with the Form 990-T seamlessly.
- With our Form-Based filing option, you can enter the required data directly on your Form 990-T & attach 3800.
- Our Internal Audit system reviews your completed form for any errors to ensure accurate returns.
- Our dedicated support team is here for you! Reach out if you have any questions during the filing process!
- You can invite your organization’s board members to review and approve your form using our Reviewers and Approvers feature.
