Form 8835 - Renewable Electricity, Refined Coal, and Indian Coal Production Credit

Use Form 8835 to claim the renewable electricity production 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. Partnerships and S corporations must file this form to claim the credit. All others are generally not required to complete or file this form if their only source for this credit is a partnership, S corporation, estate, trust, or cooperative. Instead, they can report this 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.

Grant Deadline

Deadline not available

Funding Amount

Deadline not available

Type of Grant

Tax Credit

Sectors

Clean Energy

Demographics

Incorporation

For Profit

Perks

Region Restriction

This grant is restricted to whole of United States

Keywords

tax credit, United States, Qualified Facility, Electricity, Coal, Refined

Age Restriction

This grant is age restricted from 18 to 100

Eligibility and Requirements

Qualified Facilities

Note. IRA22 generally provides that the amendments to section 45 apply to facilities placed in service after 2021. See section 13101(k) of P.L. 117-169.

A qualified facility is any of the following facilities owned by you and used to produce electricity.

• Wind facility placed in service after October 22, 2004, the construction of which begins before January 1, 2025. This doesn't include any facility for which any qualified small wind energy property expenditure (as defined in section 25D(d)(4)) is used in determining the residential energy efficient property credit.
• Closed-loop biomass facility placed in service after October 22, 2004, the construction of which begins before January 1, 2025.
• Closed-loop biomass facility modified to co-fire with coal or other biomass (or both), placed in service before January 1, 2025. The facility will be treated as modified before January 1, 2025, if the construction of the modification begins before January 1, 2025. See section 45(d)(2)(A)(ii).
• Closed-loop biomass facility that is a new unit placed in service after October 3, 2008, in connection with a facility described in section 45(d)(2)(A)(i), but only to the extent of the increased amount of electricity produced at the facility by reason of the new unit.
• Open-loop biomass facility using cellulosic waste, the construction of which begins before January 1, 2025.
• Open-loop biomass facility using agricultural livestock waste nutrients placed in service after October 22, 2004, the construction of which begins before January 1, 2025, and the nameplate capacity rating isn't less than 150 kilowatts.
• Open-loop biomass facility that is a new unit placed in service after October 3, 2008, in connection with a facility described in section 45(d)(3)(A), but only to the extent of the increased amount of electricity produced at the facility by reason of the new unit.
• Geothermal or solar energy facility placed in service after 2021, the construction of which begins before January 1, 2025. The facility doesn't include any property described in section 48(a)(3), the basis of which is taken into account by you for purposes of determining the energy credit under section 48.
• Landfill gas or trash facility using municipal solid waste placed in service after October 22, 2004, the construction of which begins before January 1, 2025.
• Hydropower facility producing incremental hydroelectric production attributable to efficiency improvements or additions to capacity described in section 45(c)(8)(B) placed in service after August 8, 2005, that will be treated as placed in service before January 1, 2025, if the construction of the improvement or addition begins before January 1, 2025, and any other facility producing qualified hydroelectric production described in section 45(c)(8) placed in service after August 8, 2005, the construction of which begins before January 1, 2025.
• Marine and hydrokinetic renewable energy facility placed in service after October 2, 2008, the construction of which begins before January 1, 2025.

A qualified facility doesn't include a landfill gas facility using municipal solid waste to produce electricity if the production from that facility is allowed as a credit under section 45K.

United States and U.S. territories include the seabed and subsoil of those submarine areas that are adjacent to the territorial waters over which the United States has exclusive rights according to international law.

Who Can Take the Credit

Generally, the owner of the facility is allowed the credit. In the case of closed-loop biomass facilities modified to co-fire with coal, other biomass, or both, and open-loop biomass facilities, if the owner isn't the producer of the electricity, the lessee or the operator of the facility is eligible for the credit.

Increased Credit Amount for Qualified Facilities

In the case of any qualified facility that satisfies one of the following requirements below, the amount of the credit determined will be equal to such amount multiplied by 5.

• A facility with a maximum output of less than 1 megawatt (as measured in alternating current).
• A facility the construction of which begins prior to January 29, 2023. See Notice 2022-61.
• A facility which satisfies the prevailing wage and apprenticeship requirements.

Grant Application website

https://www.irs.gov/instructions/i8835

Contact