Part VI—Energy Credit Under Section

The energy credit for the tax year is the energy percentage of the basis of each energy property placed in service during the tax year. The energy properties include the following.

Geothermal energy property.
Solar energy property to generate electricity, or solar energy property to illuminate.
Qualified fuel cell property.
Qualified microturbine property.
Combined heat and power system property.
Qualified small wind energy property.
Waste energy recovery property.

18 Instructions for Form 3468 (2025)

Geothermal heat pump system property.
Energy storage technology property.
Qualified biogas property.
Microgrid controllers property.
Qualified investment credit facility treated as energy property under section 48(a)(5).
Clean hydrogen production facility treated as energy property under section 48(a)(15).

Property requirements. To qualify as energy property as defined in section 48(a)(3), it must:

Meet the performance and quality standards, if any, that have been prescribed by regulations and are in effect at the time the property is acquired;
Be property for which depreciation (or amortization in lieu of depreciation) is allowable; and
Be property either:

a. The construction, reconstruction, or erection of

which is completed by the taxpayer; or

b. Acquired by the taxpayer if the original use of such

property commences with the taxpayer.

Energy property doesn’t include any property that is part of a production credit under section 45 for the tax year or any prior tax year.

Energy property doesn’t include any property acquired before February 14, 2008, or to the extent of basis attributable to construction, reconstruction, or erection before February 14, 2008, that is public utility property, as defined by section 46(f)(5) (as in effect on November 4, 1990), and related regulations. You must reduce the basis of energy property by 50% of the energy credit determined.

The general business carryforwards under section 39 will be adjusted to recapture the portion of the credit that was not allowed, and
The amount of the grant will be determined without regard to any reduction in the basis of the property by the credit.

Treatment of grants. Any grant will not be included in the gross income or alternative minimum taxable income of the taxpayer, but will be taken into account in determining the basis of the property to which the grant relates, except that the basis of such property will be reduced under section 50(c) in the same manner as a credit allowed.

Interconnection property. For purposes of determining the energy credit, energy property shall include amounts paid or incurred by the taxpayer for qualified interconnection property in connection with the installation of energy property placed in service during the tax year that:

Has a maximum net output of not greater than 5 MW (as measured in alternating current), to provide for the transmission or distribution of the electricity produced or stored by such property; and
Are properly chargeable to the capital account of the taxpayer.

See Regulations section 1.48-14(h) for more information.

Note: The amounts paid or incurred by the taxpayer for qualified interconnection property under section 48 must be included on the basis lines for applicable property on Form 3468, Part VI, Section A, line 1a; Section B, line 3a; Section C, line 5f; Section D, line 7a; Section E, line 9a; Section F, line 11d; Section G, line 13a; Section I, line 17a; and Section L, line 23a.

You must reduce the basis of energy property used for figuring the credit by any amount attributable to qualified rehabilitation expenditures.

Basis reduction. If energy property (acquired before 2009, or to the extent of its basis attributable to construction, reconstruction, or erection before 2009) is financed in whole or in part by subsidized energy financing or by tax-exempt private activity bonds, reduce the basis of such property under the rules described in Basis reduction for certain financing, earlier.

For energy property that was constructed, reconstructed, or erected after August 16, 2022, see the instructions for Section N to reduce the amount of the credit with respect to any facility financed with tax-exempt bonds.

Qualified interconnection property does not apply to Form 3468, Part VI, Section C, line 5a; Sections H, J, K, M; and parts of Section B (electrochromic glass property and fiber optic solar energy property) and Section I (thermal energy storage property and hydrogen energy storage property).

For more information, see section 48(a)(8) and T.D. 10015 including section 1.48-14(h). Qualified interconnection property. Qualified interconnection property is, with respect to an energy project that isn’t a microgrid controller, any tangible property that:

Coordination with Department of Treasury grants. In the case of any property where the Secretary makes a grant under section 1603 of the American Recovery and Reinvestment Tax Act of 2009, no credit will be determined under section 48 or section 45 with respect to the property for the tax year in which the grant is made or any subsequent tax year.

Recapture. If a credit was determined with respect to a property for any tax year ending before the grant is made:

The tax imposed on the taxpayer for the tax year in which the grant is made will be increased by the credit amount allowed under section 38,
Is part of an addition, modification, or upgrade to a transmission or distribution system that is required at or beyond the point at which the energy project interconnects to such transmission or distribution system in order to accommodate such interconnection;
Is either constructed, reconstructed, or erected by the taxpayer, or that the cost with respect to the construction, reconstruction, or erection of such property is paid or incurred by the taxpayer; and
The original use, pursuant to an interconnection agreement, commences with a utility. See Regulations section 1.48–14(h)(2) for more information.

Instructions for Form 3468 (2025) 19

Interconnection agreement. Interconnection agreement means an agreement with a utility for the purposes of interconnecting the energy property owned by the taxpayer to the transmission or distribution system of the utility. See Regulations section 1.48-14(h)(4) for more information.

Utility. For the purposes of section 48(a)(8), utility means the owner or operator of an electrical transmission or distribution system that is subject to the regulatory authority of any the following.

A state or political subdivision thereof.
Any agency or instrumentality of the United States.
A public service or public utility commission or other similar body of any state or political subdivision thereof.
The governing or ratemaking body of an electric cooperative.

Special rule for interconnection property. In the case of expenses paid or incurred for interconnection property, amounts otherwise chargeable to a capital account with respect to such expenses will be reduced under rules similar to the rules of section 50(c). The special rule in section 50(c)(3)(A), which provides for a basis reduction of 50% in the case of any energy credit, applies to qualified interconnection property the costs of which are included for purposes of the section 48 credit.

Energy project. For purposes of the increased credit amount described in Part I, lines 7 and 8; the domestic content bonus credit amount described in Part I, line 9; and the increase in credit rate for energy communities described in Part I, line 10; the term energy project means one or more energy properties (multiple energy properties) that are operated as part of a single energy project. Multiple energy properties will be treated as one energy project if they are owned by a taxpayer (subject to the related taxpayer rule in Regulations section 1.48-13(d) (2)) and any four or more of the following factors are present.

The energy properties are constructed on contiguous pieces of land.
The energy properties are described in a common power purchase, thermal energy, or other off-take agreement or agreements.
The energy properties have a common intertie.
The energy properties share a common substation, or thermal energy off-take point.
The energy properties are described in one or more common environmental or other regulatory permits.
The energy properties are constructed pursuant to a single master construction contract.
The construction of the energy properties is financed pursuant to the same loan agreement.

Separate reporting for energy properties within an energy project. While multiple energy properties may be treated as a single energy project for specified purposes, this information must be reported separately for each energy property within an energy project. The form must be timely filed (including extensions) for the tax year in which the energy property is placed in service. See Regulations section 1.48-13(d) for more information.

Section A—Geothermal Energy Credit

Geothermal energy. Geothermal energy property is used to produce, distribute, or use energy derived from a geothermal deposit (within the meaning of section 613(e)(2)). For electricity produced by geothermal power, equipment qualifies only up to, but not including, the electrical transmission stage.

Line 1b

For qualifying geothermal energy property placed in service during the tax year, the applicable percentage is determined by the beginning of construction date and if either (1) the PWA requirements are met or (2) a limited exception is met. See Part I, lines 7 and 8, Filers Completing Part V or VI , earlier. Use the table below to determine your applicable percentage and enter it on line 1b.

See Increased C more information.	Credit Amount Statement, earlier, for
	Beginning of Construction	Beginning of Construction	Beginning of Construction
	Before 2025	From 01/01/25 to 06/15/25	After 06/15/25
Meets PWA requirements or limited exception	30%	10%	0%
Does not meet PWA requirements or limited exception	6%	2%	0%

Enter your applicable domestic content bonus credit percentage. See Domestic Content Certification Statement , earlier, for more information.

If the energy project did not meet the requirements for the domestic content bonus credit, leave line 1d blank, skip line 1e, and go to line 1f.

Line 1f

Enter your applicable energy community bonus credit percentage. See Energy community bonus credit rate , earlier, for more information.

If the energy project was not placed in service within an energy community, leave line 1f blank, skip line 1g, and go to line 2.

Section B—Solar Energy Credit

Solar energy. Solar energy property is property that has the following.

Equipment that uses solar energy to illuminate the inside of a structure using fiber-optic-distributed sunlight.

Line 1d

20 Instructions for Form 3468 (2025)

Electrochromic glass that uses electricity to change its light transmittance properties in order to heat or cool a structure.
Equipment that uses solar energy to:

a. Generate electricity,

b. Heat or cool (or provide hot water for use in) a

structure, or

c. Provide solar process heat (but not to heat a

swimming pool).

Caution: For solar energy property described in 1 and 2 above, filers may be able to claim these credits for qualified property where construction began before 2025. These credits cannot be claimed for qualified property whose construction began after 2024.

Line 3b

For qualifying solar energy property (described in Solar energy 1 or 2 above) placed in service during the tax year where construction begins before 2025, the applicable percentage is determined by meeting the PWA requirements or a limited exception. See Part I, lines 7 and 8, Filers Completing Part V or VI, earlier. Use the table

below to determine y it on line 3b.	your applicable percentage and enter
	Beginning of Construction	Beginning of Construction
	Before 2025	After 2024
Meets PWA requirements or limited exception	30%	0%
Does not meet PWA requirements or limited exception	6%	0%

For qualifying solar energy property (described in Solar energy 3 above) placed in service during the tax year, the applicable percentage is determined by the beginning of construction date and if either (1) the PWA requirements are met or (2) a limited exception is met. See Part I, lines 7 and 8, Filers Completing Part V or VI , earlier. Use the table

Line 3d

Enter your applicable low-income communities bonus credit percentage in connection with your solar energy facility. See Low-income communities bonus credit amount , earlier, for more information.

However, you don’t qualify for the low-income communities bonus credit if either of the following apply.

You checked the box in Part I, line 11g; or
Part I, line 12a(ii), is 5 MW ac or more (in relation to Part I, line 11a, 11b, 11c, or 11d).

In the case where either 1 or 2 above apply, enter -0- on lines 3d and 3j, and go to line 3k.

Line 3k

Enter the applicable domestic content bonus credit percentage. See Domestic Content Certification Statement, earlier, for more information.

If the energy project did not meet the requirements for the domestic content bonus credit, leave line 3k blank, skip line 3l, and go to line 3m.

Line 3m

Enter the applicable energy community bonus credit percentage. See Energy community bonus credit rate , earlier, for more information.

If the energy project was not placed in service within an energy community, leave line 3m blank, skip line 3n, and go to line 4.

Section C—Qualified Fuel Cell Property

Qualified fuel cell property. Qualified fuel cell property is a fuel cell power plant that has a nameplate capacity of at least 0.5 kilowatts (1 kilowatt in the case of a fuel cell plant with a linear generator assembly) of electricity using an electrochemical or electromechanical process and has electricity-only generation efficiency greater than 30%. See section 48(c)(1) for further details. Fuel cell power plant. Fuel cell power plant means an integrated system comprised of a fuel cell stack assembly or linear generator assembly, and associated balance of plant components that converts a fuel into electricity using electrochemical or electromechanical means.

Linear generator assembly. Linear generator assembly doesn’t include any assembly that contains rotating parts.

Line 5a

Enter the basis, attributable to periods after 2005 and before October 4, 2008, of any qualified fuel cell property placed in service during the tax year, if the property was acquired after 2005 and before October 4, 2008, or to the extent of basis attributable to construction, reconstruction, or erection by the taxpayer after 2005 and before October 4, 2008.

below to determine y it on line 3b.	your applicable percentage and enter
	Beginning of Construction	Beginning of Construction	Beginning of Construction
	Before 2025	From 01/01/25 to 06/15/25	After 06/15/25
Meets PWA requirements or limited exception	30%	10%	0%
Does not meet PWA requirements or limited exception	6%	2%	0%

Tip: See Increased Credit Amount Statement, earlier, for more information about the required statement.

Instructions for Form 3468 (2025) 21

Line 5c

Enter the applicable number of kilowatts of capacity attributable to the basis on line 5a. This entry must be a whole number.

Line 5f

Enter the basis, attributable to periods after October 3, 2008, and the construction of which began before 2021 or after 2022, of any qualified fuel cell property placed in service during the tax year.

Caution: Filers may be able to claim these credits for qualified property where construction began before 2025. These credits cannot be claimed for qualified property whose construction began after 2024.

See Qualified fuel cell property and Beginning of construction , earlier.

Caution: Basis is attributable to periods after October 3, 2008, if the property was acquired after October 3, 2008, or to the extent of basis attributable to construction, reconstruction, or erection by the taxpayer after October 3, 2008.

Line 5g

Enter your applicable energy percentage. See Increased Credit Amount Statement , earlier, for more information.

Line 5i

Enter your applicable domestic content bonus credit percentage. See Domestic Content Certification Statement, earlier, for more information.

If the energy project did not meet the requirements for the domestic content bonus credit, leave line 5i blank, skip line 5j, and go to line 5l.

Line 5l

Enter the applicable energy community bonus credit percentage. See Energy community bonus credit rate, earlier, for more information.

If the energy project was not placed in service within an energy community, leave line 5l blank, skip line 5m, and go to line 5n.

Line 5o

Enter the applicable number of kilowatts of capacity attributable to the basis on line 5f. This entry must be a whole number.

Section D—Qualified Microturbine Property

Qualified microturbine property. Qualified microturbine property is a stationary microturbine power plant that has a nameplate capacity of less than 2,000 kilowatts and has an electricity-only generation efficiency of not less than

26% at International Standard Organization conditions. See section 48(c)(2) for further details.

Stationary microturbine power plant. Stationary microturbine power plant means an integrated system comprised of a gas turbine engine, a combustor, a recuperator or regenerator, a generator or alternator, and associated balance of plant components that converts a fuel into electricity and thermal energy. It also includes all secondary components located between the existing infrastructure for fuel delivery and the existing infrastructure for power distribution, including equipment and controls for meeting relevant power standards, such as voltage, frequency, and power factors.

Line 7a

Enter the basis, attributable to periods after 2005, of any qualified microturbine property placed in service during the tax year, if the property was acquired after 2005, or to the extent of basis attributable to construction, reconstruction, or erection by the taxpayer after 2005.

Line 7b

Enter your applicable energy percentage. See Increased Credit Amount Statement , earlier, for more information.

Line 7d

Enter your applicable domestic content bonus credit percentage. See Domestic Content Certification Statement, earlier, for more information.

If the energy project did not meet the requirements for the domestic content bonus credit, leave line 7d blank, skip line 7e, and go to line 7g.

Line 7g

Enter the applicable energy community bonus credit percentage. See Energy community bonus credit rate, earlier, for more information.

If the energy project was not placed in service within an energy community, leave line 7g blank, skip line 7h, and go to line 7i.

Line 7j

Enter the applicable number of kilowatts of capacity attributable to the basis on line 7a. This entry must be a whole number.

Section E—Combined Heat and Power System Property

Combined heat and power system property. Combined heat and power system property means property comprising a system that:

22 Instructions for Form 3468 (2025)

Uses the same energy source for the simultaneous or sequential generation of electrical power, mechanical shaft power, or both; in combination with the generation of steam or other forms of useful thermal energy (including heating and cooling applications); and
Has an energy efficiency percentage determined on a British thermal unit (BTU) basis over 60% and it produces:

a. At least 20% (determined on a BTU basis) of

its total useful energy in the form of thermal energy that isn’t used to produce electrical and/or mechanical power, and

b. At least 20% (determined on a BTU basis) of its

total useful energy in the form of electrical and/or mechanical power.

For details, see section 48(c)(3).

Caution: Taxpayers cannot take a credit for both combined heat and power system property and waste energy recovery property for the same property. Taxpayers must elect not to treat such property as combined heat and power system property for section 48 purposes.

Limitation. In the case of combined heat and power system property with an electrical capacity in excess of the applicable capacity placed in service during the tax year, the credit for that year shall be equal to the amount that bears the same ratio to the credit as the applicable capacity bears to the capacity of such property.

Applicable capacity. Applicable capacity means the following.

15 MW.
A mechanical energy capacity of more than 20,000 horsepower.
An equivalent combination of electrical and mechanical energy capacities.

Maximum capacity. Combined heat and power system property shall not include any property comprising a system if the system has:

A capacity of more than 50 MW,
A mechanical energy capacity of more than 67,000 horsepower, or
An equivalent combination of electrical and mechanical energy capacities.

the system fails to meet the efficiency standard. For more information, see section 48(c)(3)(D).

Line 9d

Enter your applicable energy percentage. See Increased Credit Amount Statement, earlier, for more information.

Line 9f

Enter your applicable domestic content bonus credit percentage. See Domestic Content Certification Statement , earlier, for more information.

If the energy project did not meet the requirements for the domestic content bonus credit, leave line 9f blank, skip line 9g, and go to line 9h.

Line 9h

Enter the applicable energy community bonus credit percentage. See Energy community bonus credit rate, earlier, for more information.

If the energy project was not placed in service within an energy community, leave line 9h blank, skip line 9i, and go to line 10.

Section F—Qualified Small Wind Energy Property

Qualified small wind energy property. Qualified small wind energy property means property that uses a qualifying small wind turbine to generate electricity. For this purpose, a qualifying small wind turbine means a wind turbine that has a nameplate capacity of not more than 100 kilowatts. For details, see section 48(c)(4). In addition, for small wind energy property acquired (or placed in service in the case of property constructed, reconstructed, or erected) after February 2, 2015, see Notice 2015-4, 2015-5 I.R.B. 407 (available at IRS.gov/irb/ 2015-05_IRB#NOT-2015-4 ), as modified by Notice 2015-51, 2015-31 I.R.B. 133 (available at IRS.gov/irb/ 2015-31_IRB#NOT-2015-51 ), and Regulations section 1.48-9(c)(2)(ii)(A), for performance and quality standards that small wind energy property must meet to qualify for the energy credit.

Line 11d

Enter the basis of any qualified small wind energy property placed in service during the tax year, if the property was acquired by the taxpayer or the basis is attributable to construction, reconstruction, or erection by the taxpayer.

Energy efficiency percentage. The energy efficiency percentage of a combined heat and power system property is the fraction of which the numerator is the total useful electrical, thermal, and mechanical power produced by the system at normal operating rates (and expected to be consumed in its normal application), and the denominator is the lower heating value of the fuel sources for the system.

Combined heat and power system property doesn’t include property used to transport the energy source to the facility or to distribute energy produced by the facility.

Biomass systems. Systems designed to use biomass for at least 90% of the energy source are eligible for a credit that is reduced in proportion to the degree to which

Instructions for Form 3468 (2025) 23

See Beginning of construction , earlier.

Line 11e

Enter your applicable energy percentage. See Increased Credit Amount Statement , earlier, for more information.

Line 11g

Enter your applicable low-income communities bonus credit percentage in connection with your small wind energy facility. See Low-income communities bonus credit amount , earlier, for more information.

However, you don’t qualify for the low-income communities bonus credit if either of the following apply.

You checked the box in Part I, line 11g; or
Part I, line 12b, is 5 MW ac or more (in relation to Part I, line 11a, 11b, 11c, or 11d).

In the case where either 1 or 2 above apply, enter -0- on lines 11g and 11m, and go to line 11n.

Line 11n

Enter your applicable domestic content bonus credit percentage. See Domestic Content Certification Statement, earlier, for more information.

If the energy project did not meet the requirements for the domestic content bonus credit, leave line 11n blank, skip line 11o, and go to line 11p.

Line 11p

Enter the applicable energy community bonus credit percentage. See Energy community bonus credit rate , earlier, for more information.

If the energy project was not placed in service within an energy community, leave line 11p blank, skip line 11q, and go to line 12.

Section G—Waste Energy Recovery Property

Waste energy recovery property. Qualified waste energy recovery property means property that generates electricity solely from heat from buildings or equipment if the primary purpose of such building or equipment is not the generation of electricity. The term “waste energy recovery property” shall not include any property that has a capacity in excess of 50 MW. For details, see section 48(c)(5).

Note: The transitional rules of section 48(m) (as in effect on November 4, 1990) apply to waste energy recovery property for periods after 2020.

Line 13b

Enter your applicable energy percentage. See Increased Credit Amount Statement, earlier, for more information.

Line 13d

Enter your applicable domestic content bonus credit percentage. See Domestic Content Certification Statement , earlier, for more information.

If the energy project did not meet the requirements for the domestic content bonus credit, leave line 13d blank, skip line 13e, and go to line 13f.

Line 13f

Enter the applicable energy community bonus credit percentage. See Energy community bonus credit rate, earlier, for more information.

If the energy project was not placed in service within an energy community, leave line 13f blank, skip line 13g, and go to line 14.

Section H—Geothermal Heat Pump Systems

Geothermal heat pump systems. Geothermal heat pump systems constitute equipment that uses the ground or ground water as a thermal energy source to heat a structure or as a thermal energy sink to cool a structure. For details, see section 48(a)(3)(A)(vii).

Line 15b

Enter your applicable energy percentage. See Increased Credit Amount Statement , earlier, for more information.

Line 15d

Enter your applicable domestic content bonus credit percentage. See Domestic Content Certification Statement, earlier, for more information.

If the energy project did not meet the requirements for the domestic content bonus credit, leave line 15d blank, skip line 15e, and go to line 15f.

Line 15f

Enter the applicable energy community bonus credit percentage. See Energy community bonus credit rate, earlier, for more information.

If the energy project was not placed in service within an energy community, leave line 15f blank, skip line 15g, and go to line 16.

24 Instructions for Form 3468 (2025)

Section I—Energy Storage Technology Property

Energy storage technology. Energy storage technology is:

Property (other than property primarily used in the transportation of goods or individuals and not for the production of electricity) that receives, stores, and delivers energy for conversion to electricity (or, in the case of hydrogen, stores energy), and has a nameplate capacity of not less than 5 kilowatt hours; and
Thermal energy storage property.

Modifications of certain property. In the case of any energy storage technology property described above that was either (1) placed in service before August 16, 2022, and that has a capacity of less than 5 kilowatt hours and is modified to where the property has a nameplate capacity of at least 5 kilowatt hours; or (2) is modified in a manner that increases the nameplate capacity to at least 5 kilowatt hours, the modified property will be treated as energy storage technology property, except for the treatment of the basis of the existing property prior to the modification.

Thermal energy storage property. Thermal energy storage property is property comprising a system that:

Is directly connected to a heating, ventilation, or air conditioning system;
Removes heat from, or adds heat to, a storage medium for subsequent use; and
Provides energy for the heating or cooling of the interior of a residential or commercial building.

Thermal energy storage property doesn’t include:

A swimming pool,
Combined heat and power system property,
A building or its structural components, or
Property that transforms other forms of energy into heat in the first instance. See Regulations section 1.48-9(e)(10)(iii).

Line 17a

Enter the basis of any energy storage technology property placed in service during the tax year, to the extent of basis attributable to construction, reconstruction, or erection by the taxpayer.

Line 17b

Enter your applicable energy percentage. See Increased Credit Amount Statement, earlier, for more information.

Line 17d

Enter your applicable low-income communities bonus credit percentage in connection with your solar or wind energy facility. See Low-income communities bonus credit amount , earlier, for more information.

However, you don’t qualify for the low-income communities bonus credit if either of the following apply.

You checked the box in Part I, line 11g; or
Part I, line 12a(ii) or 12b, is 5MW ac or more (in relation to Part I, line 11a, 11b, 11c, or 11d).

In the case where either 1 or 2 above apply, enter -0- on lines 17d and 17j, and go to line 17k.

Line 17k

Enter your applicable domestic content bonus credit percentage. See Domestic Content Certification Statement , earlier, for more information.

If the energy project did not meet the requirements for the domestic content bonus credit, leave line 17k blank, skip line 17l, and go to line 17m.

Line 17m

Enter the applicable energy community bonus credit percentage. See Energy community bonus credit rate , earlier, for more information.

If the energy project was not placed in service within an energy community, leave line 17m blank, skip line 17n, and go to line 18.

Section J—Qualified Biogas Property

Qualified biogas property. Qualified biogas property is property comprising a system that:

Converts biomass (as defined in section 45K(c)(3), as in effect on August 16, 2022), into a gas that:

a. Consists of not less than 52% methane by volume,

b. Is concentrated by such system into a gas that

consists of not less than 52% methane, and

Captures such gas for sale or productive use, and not for disposal by means of combustion.

Qualified biogas property includes any property, described above, that is part of a system that cleans or conditions gas.

Line 19a

Enter the basis of any qualified biogas energy property placed in service during the tax year, to the extent of basis attributable to construction, reconstruction, or erection by the taxpayer.

Line 19b

Enter your applicable energy percentage. See Increased Credit Amount Statement , earlier, for more information.

Instructions for Form 3468 (2025) 25

Line 19d

Enter your applicable domestic content bonus credit percentage. See Domestic Content Certification Statement , earlier, for more information.

If the energy project did not meet the requirements for the domestic content bonus credit, leave line 19d blank, skip line 19e, and go to line 19f.

Line 19f

Enter the applicable energy community bonus credit percentage. See Energy community bonus credit rate, earlier, for more information.

If the energy project was not placed in service within an energy community, leave line 19f blank, skip line 19g, and go to line 20.

Section K—Microgrid Controllers Property

Microgrid controller. Microgrid controller means equipment that is:

Part of a qualified microgrid, and
Designed and used to monitor and control the energy resources and loads on such microgrid.

Qualified microgrid. A qualified microgrid is an electrical system that:

Includes equipment that is capable of generating not less than 4 kilowatts and not more than 20 MW of electricity;
Is capable of operating:

a. In connection with the electrical grid and as a

single controllable entity with respect to such grid,

b. Independently (and disconnected) from such grid,

and

Is not part of a bulk-power system (as defined in section 215 of the Federal Power Act (16 U.S.C. 824o)).

Line 21a

Enter the basis of any qualified microgrid controller property placed in service during the tax year, to the extent of basis attributable to construction, reconstruction, or erection by the taxpayer.

Line 21b

Enter your applicable energy percentage. See Increased Credit Amount Statement, earlier, for more information.

Line 21d

Enter your applicable domestic content bonus credit percentage. See Domestic Content Certification Statement , earlier, for more information.

If the energy project did not meet the requirements for the domestic content bonus credit, leave line 21d blank, skip line 21e, and go to line 21f.

Line 21f

Enter the applicable energy community bonus credit percentage. See Energy community bonus credit rate, earlier, for more information.

If the energy project was not placed in service within an energy community, leave line 21f blank, skip line 21g, and go to line 22.

Section L—Qualified Investment Credit Facility Property

Qualified investment credit facility property. Qualified investment credit facility property is property:

Note: The transitional rules of section 48(m) (as in effect on November 4, 1990) apply to offshore wind facilities for periods after 2016. Under the transitional rules of section 48(m) (as in effect on November 4, 1990), the phaseout of the section 48 credit provided for other types of qualified investment credit facilities under section 48(a)(5)(E) does not apply to qualified offshore wind facilities.

Qualified investment credit facility. A qualified investment credit facility is a facility that:

Is one of the following qualified facilities that is placed in service after 2008 and on which construction began before 2025. These credits cannot be claimed for qualified property whose construction began after
See Beginning of construction , earlier.

a. Wind facility under section 45(d)(1).

b. Closed-loop biomass facility under section 45(d)

(2).

c. Open-loop biomass facility under section 45(d)(3).

d. Geothermal or solar energy facility under section

45(d)(4).

e. Landfill gas facility under section 45(d)(6).

f. Trash facility under section 45(d)(7).

That is tangible personal property or other tangible property (not including a building or its structural components), but only if the property is used as an integral part of the qualified investment credit facility;
That is constructed, reconstructed, erected, or acquired by the taxpayer;
With respect to which depreciation or amortization is allowable; and
For which the original use begins with the taxpayer.

See section 48(a)(5) for details.

g. Qualified hydropower facility under section 45(d)

(9).

26 Instructions for Form 3468 (2025)

h. Marine and hydrokinetic renewable energy facility

under section 45(d)(11).

i. Qualified offshore wind facility. See Notice 2021-5,

2021-03 I.R.B. 479, available at IRS.gov/irb/ 2021-03_IRB#NOT-2021-5 , for more information on beginning of construction requirements applied to offshore and federal land projects.

Line 23b

Enter your applicable energy percentage. See Increased Credit Amount Statement, earlier, for more information.

Line 23d

Enter your applicable low-income communities bonus credit percentage in connection with your wind energy facility. See Low-income communities bonus credit amount , earlier, for more information.

However, you don’t qualify for the low-income communities bonus credit if either of the following apply.

You checked the box in Part I, line 11g; or
Part I, line 12b, is 5MW ac or more (in relation to Part I, line 11a, 11b, 11c, or 11d).

In the case where either 1 or 2 above apply, enter -0- on lines 23d and 23j, and go to line 23k.

Line 23e

Enter the amount of capacity limitation you were allocated in the allocation letter.

Note: The capacity limitation allocated for solar property is reported in direct current (dc). The capacity limitation allocated for wind property may be reported in either alternating current (ac) or dc.

Line 23k

Enter your applicable domestic content bonus credit percentage. See Domestic Content Certification Statement , earlier, for more information.

If the energy project did not meet the requirements for the domestic content bonus credit, leave line 23k blank, skip line 23l, and go to line 23m.

Line 23m

Enter the applicable energy community bonus credit percentage. See Energy community bonus credit rate , earlier, for more information.

If the energy project was not placed in service within an energy community, leave line 23m blank, skip line 23n, and go to line 24.

Section M—Clean Hydrogen Production Facilities as Energy Property

Election to treat clean hydrogen production facili ties as energy property. In the case of any qualified property (as defined in section 48(a)(5)(D)) that is part of a specified clean hydrogen production facility, such property will be treated as energy property for purposes of this

No credit has been allowed under section 45 for that facility (see Note below); and
An irrevocable election was made to treat the facility as energy property.

Note: If a taxpayer retrofits an energy property that previously received a credit under section 45 by meeting the 80/20 Rule provided in section 7.05 of Notice 2018-59, 2018-28 I.R.B. 196, available at IRS.gov/irb/ 2018-28_IRB#NOT-2018-59 , the taxpayer may claim an investment tax credit based on its investment. However, if the energy property is within the recapture period for the section 45 credit, the taxpayer may have to recapture all or part of such section 45 credit accordingly.

Qualified offshore wind facility. For purposes of section 48(a)(5), qualified offshore wind facility means a qualified facility (within the meaning of section 45(d)(1)) that is located in the inland navigable waters of the United States or in the coastal waters of the United States.

Section 48(a)(5) Election Statement

If you are electing to treat a qualified investment credit facility as energy property, you must attach an election statement to Form 3468 for each qualified facility. The election statement must include the following information.

Your name and taxpayer identification number shown on the return.
For each qualified facility, include the following:

a. The facility description (including the owner

information, if different from the filer, in Part I, line 3b(i) and 3b(ii)) and the IRS-issued registration number (if applicable) of the qualified facility from Part I, line 1,

b. An accounting of your basis in the energy

property, and

c. A depreciation schedule reflecting your remaining

basis in the energy property after the energy credit is claimed.

A statement that you haven’t and won’t claim a section 1603 grant for new investment in the property for which you are claiming the energy credit.
A declaration, applicable to the statement and any accompanying documents, signed by you, or signed by a person currently authorized to bind you in such matters that states the following: “Under penalties of perjury, I declare that I have examined this statement, including accompanying documents, and to the best of my knowledge and belief, the facts presented in support of this statement are true, correct, and complete.”

Instructions for Form 3468 (2025) 27

section, and the energy percentage with respect to such property is as follows.

1.2% in the case of a facility that is designed and reasonably expected to produce qualified clean hydrogen that is described in section 45V(b)(2)(A).
1.5% in the case of a facility that is designed and reasonably expected to produce qualified clean hydrogen that is described in section 45V(b)(2)(B).
2% in the case of a facility that is designed and reasonably expected to produce qualified clean hydrogen that is described in section 45V(b)(2)(C).
6% in the case of a facility that is designed and reasonably expected to produce qualified clean hydrogen that is described in section 45V(b)(2)(D).

Denial of production credit. No credit will be allowed under section 45V or section 45Q for any tax year with respect to any specified clean hydrogen production facility or any carbon capture equipment included at such facility.

Specified clean hydrogen production facility. Specified clean hydrogen production facility means any qualified clean hydrogen production facility that meets the following.

Owned by the taxpayer.
Produces qualified clean hydrogen.
Construction begins before 2028.
Is placed in service after 2022.
No credit has been allowed under section 45V or 45Q.
The taxpayer makes an irrevocable election to treat clean hydrogen production facility as energy property under section 48(a)(15).
An unrelated third party has verified (in such form or manner as the Secretary may prescribe) that such facility produces hydrogen through a process that results in lifecycle greenhouse gas emissions that are consistent with the hydrogen that the facility was designed and expected to produce as specified in the Section 48(a)(15) Election Statement , described below.

Qualified clean hydrogen. Qualified clean hydrogen means hydrogen that is produced through a process that results in a lifecycle greenhouse gas emissions rate of not greater than 4 kilograms of CO2e per kilogram of hydrogen.

Qualified clean hydrogen also requires the following.

Hydrogen is produced in the United States (as defined in section 638(1)) or a territory of the United States (as defined in section 638(2)).
Hydrogen is produced in the ordinary course of a trade or business of the taxpayer.
Hydrogen is produced for sale or use.
The production and sale or use of such hydrogen is verified by an unrelated party.

Section 48(a)(15) Election Statement

If you are electing to treat qualified property that is part of a specified clean hydrogen production facility as energy property, you must attach a statement to Form 3468 for each qualified facility. The election statement must include the following information.

Your name and taxpayer identification number shown on the return.
For each qualified facility, include the following:

a. The facility description (including the owner

information, if different from the filer from Part I, line 3b(i) and 3b(ii)) and the IRS-issued registration number (if applicable) of the qualified facility from Part I, line 1.

b. The lifecycle greenhouse gas (GHG) emission

rate from Part I, line 2a(i) of the facility for the tax year.

c. A copy of the required verification report and if

you are petitioning for a provisional emissions rate, a copy of the documentation obtained from the Department of Energy providing an emissions value.

An attestation that the facility produced hydrogen through a process that results in a lifecycle GHG emissions rate that is consistent with, or lower than, the lifecycle GHG emissions rate of the hydrogen that such facility was designed and expected to produce.
A statement that you haven’t claimed and aren’t claiming a section 45V or 45Q credit for the facility for which you are claiming the energy credit.
A statement (if applicable) that you are making an irrevocable election to determine the lifecycle GHG emissions rate of your facility’s hydrogen production pathway using one of the following versions of 45VH2-GREET:

a. The latest version of 45VH2-GREET that was

available on the date when construction of your facility began, which you will use for the current tax year and all remaining tax years in the recapture period.

b. The first version of 45VH2-GREET (that is, the

version of 45VH2-GREET that was released in December 2023), which you will use for the current tax year and all remaining tax years in the recapture period.

c. The first version of 45VH2-GREET that includes

your facility’s hydrogen production pathway, which you will use for the first tax year that your pathway becomes included in 45VH2-GREET and all remaining tax years in the recapture period.

For information on identifying which version of 45VH2-GREET you may elect to use, see section 48(a)(15), Department of Energy, Clean Hydrogen Production Tax Credit (45V) Resources, available at www.energy.gov/articles/clean-hydrogen- production-tax-credit-45v-resources , and Department of Energy, 45V Emissions Value Request, available at www.energy.gov/eere/45v-emissions-value-request .

A declaration, applicable to the statement and any accompanying documents, signed by you, or signed by a person currently authorized to bind you in such matters that states the following: “Under penalties of perjury, I declare that I have examined this statement, including accompanying documents, and to the best of my knowledge and belief, the facts presented

28 Instructions for Form 3468 (2025)

in support of this statement are true, correct, and complete.”

Line 25a

Enter the basis of property placed in service during the tax year for the facility that is designed and reasonably expected to produce, through a process, qualified clean hydrogen that results in a lifecycle greenhouse gas emission rate no greater than 4 kilograms of CO2e per kilogram of hydrogen and not less than 2.5 kilograms as described in section 45V(b)(2)(A).

Line 25b

Enter your applicable energy percentage. See Increased Credit Amount Statement, earlier, for more information.

Line 25d

Enter the basis of property placed in service during the tax year for the facility that is designed and reasonably expected to produce, through a process, qualified clean hydrogen that results in a lifecycle greenhouse gas emission rate less than 2.5 kilograms of CO2e per kilogram of hydrogen and not less than 1.5 kilograms as described in section 45V(b)(2)(B).

Line 25e

Enter your applicable energy percentage. See Increased Credit Amount Statement , earlier, for more information.

Line 25g

Enter the basis of property placed in service during the tax year for the facility that is designed and reasonably expected to produce, through a process, qualified clean hydrogen that results in a lifecycle greenhouse gas emission rate less than 1.5 kilograms of CO2e per kilogram of hydrogen and not less than 0.45 kilograms as described in section 45V(b)(2)(C).

Line 25h

Enter your applicable energy percentage. See Increased Credit Amount Statement, earlier, for more information.

Line 25j

Enter the basis of property placed in service during the tax year for the facility that is designed and reasonably expected to produce, through a process, qualified clean hydrogen that results in a lifecycle greenhouse gas emission rate less than 0.45 kilograms of CO2e per kilogram of hydrogen as described in section 45V(b)(2) (D).

Line 25k

Enter your applicable energy percentage. See Increased Credit Amount Statement , earlier, for more information.

Section N—Totals and Credit Reduction for Tax-Exempt Bonds

Line 28

If proceeds of tax-exempt bonds were used to finance your facility, continue to line 28a. If proceeds of tax-exempt bonds were not used to finance your facility, skip lines 28a through 28e, and go to line 29.

Credit reduced for tax-exempt bonds. The amount of the credit with respect to any facility for any tax year will be reduced by the amount that is the product of the amount of the credit determined without the reduction of tax-exempt bonds for such year and the lesser of one of the following.

15%.
A fraction. The numerator is the sum for the tax year and all prior tax years of proceeds of an issue of any obligations the interest on which is exempt from tax under section 103 and that is used to provide financing for the qualified facility, as of the close of the tax year. The denominator is the aggregate amount of additions to the capital account for the qualified facility for the tax year and all prior tax years, as of the close of the tax year.

Note: The credit reduction for tax-exempt bonds, lines 28a through 28e, applies to construction, reconstruction, or erection of an energy property that began after August 16, 2022.

Line 30

Elective payment phaseout for applicable entities. If you are making an elective payment election for a facility whose construction began in calendar year 2024, and the facility does not satisfy the rules of section 48(a)(12)(B), does not have a maximum net output of less than 1 MW (as measured in alternating current), or meet an exception under section 45(b)(10)(D), multiply line 29 by 90% (0.90).

Exception to elective payment phaseout. For facilities whose construction began during calendar year 2024, Notice 2024-09 (extended by Notice 2024-84) provides transitional procedures to claim the statutory exceptions to the elective payment phaseout related to the domestic content requirement.

To substantiate your claim of exception to the elective payment phaseout, you must complete and attach a statement to Form 3468. The statement must say, under penalties of perjury, that you have reviewed the requirements for the increased cost exception and the non-availability exception under section 45(b)(10)(D), and have made a good faith determination that the qualified facility meets the requirements for the increased cost exception and/or the non-availability exception, as applicable. The statement must be signed by a person with the legal authority to bind the applicable entity in federal tax matters. For more information, see Notice 2024-09, 2024-02 I.R.B. 358, available at IRS.gov/irb/ 2024-02_IRB#NOT-2024-9 and Notice 2024-84, 2024-50 I.R.B. 1229, available at IRS.gov/irb/ 2024-50_IRB#NOT-2024-84 .

Instructions for Form 3468 (2025) 29

Line 31

Patrons, including cooperatives that are patrons in other cooperatives, enter the unused investment credit from the energy credit allocated from cooperatives. If you are a cooperative, see the instructions for Form 3800, Part III, line 4a, for allocating the investment credit to your patrons.

Tip: See Cooperatives, earlier, for filing Form 3468 to report any unused credits from cooperatives.

Line 32

Partnership or S corporation. If you are a partnership or S corporation electing to transfer the energy credit with respect to a facility or property (or portion thereof) under section 6418(c), you must report the total credit amount with respect to your facility on line 32 and Form 3800, Part III, line 4a.