Part II. Figuring Credit Allowed After Limitations

Section A Figuring Credit Allowed After Section 38(c)(1) Limitation Based on Amount of Tax

Line 7

Individuals. Enter the sum of the amounts from Form 1040, 1040-SR, or 1040-NR, line 16; and Schedule 2 (Form 1040), line 1z. Don’t include any recapture of an education credit, any tax from Form 8621, any net tax liability deferred under section 965(i), or any triggering event under section 965(i).

Corporations. Enter the amount from Form 1120, Schedule J, line 2 (excluding the amounts entered on lines 1c, 1e, and 1f) or other applicable line of your return.

Estates and trusts. Enter the amount from Form 1041, Schedule G, lines 1a, 1b, and 1d, plus any Form 8978 amount included on line 1e; or the amount from the applicable line of your return.

Non-pass-through partners. Partners other than pass-through partners (such as partnerships or S corporations) use Form 8978 and Schedule A (Form 8978)—not Form 3800—to calculate their reporting year tax net of credits. However, credit carryforwards resulting from a Form 8978 calculation are reported on the partner’s next tax year’s Form 3800, Parts IV and VI, if applicable. See Form 8978 and its instructions.

Line 10b Enter the total allowable credit, if any, from your tax return as follows.

Individuals. Enter the amount from Form 1040, 1040-SR, or 1040-NR, line 19; and Schedule 3 (Form 1040), lines 2 through

4, 5a, 5b, and 7. Don’t include any general business credit claimed on Form 3800, any credit for prior-year minimum tax, or any credit claimed on Form 8912, Credit to Holders of Tax Credit Bonds.

Estates and trusts. Enter the total of any write-in credits from Form 1041, Schedule G, line 2e; or the amount from the applicable line of your return.

Corporations. Enter the amount from Form 1120, Schedule J, line 5b (or the applicable line of your return). Corporations reporting a Form 8978 amount on Schedule J, line 5f, must also include this amount on line 10b. If line 11 is zero or less, these corporations must enter -0- on line 11, skip lines 12 through 15, and enter -0- on line 16.

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Special rules. See section 38(c)(6) for special rules that apply to married couples filing separate returns, controlled corporate groups, regulated investment companies, real estate investment trusts, estates, and trusts.

Corporations. Corporations are allowed a general business credit equal to 25% of the excess (if any) of net income tax over $25,000. Net income tax means the sum of the regular tax liability and the tax imposed by the alternative minimum tax under section 55, reduced by certain other credits.

Line 17

C corporations. If the corporation has undergone a post-1986 ownership change (as defined in section 382(g)), section 383 may limit the amount of tax that may be offset by pre-change general business credits. Also, if a corporation acquires control of another corporation (or acquires its assets in a reorganization), section 384 may limit the amount of tax attributable to recognized built-in gains that may be offset by pre-acquisition general business credits. If either of these limitations apply; attach a computation of the allowable general business credit, enter the amount on Part II, line 17; and write “Sec. 383” or “Sec. 384” in the margin next to your entry on Part II, line 17.

Section B Figuring Section 38(c)(2) Empowerment Zone and Community Renewal Employment Credit Allowed

Lines 18 Through 26 These lines are used to claim the empowerment zone employment credit and the renewal community employment credit. Complete lines 18 through 26 only if you have entered an amount for the empowerment zone employment credit on line 3 of Part III, column (d) or (e); or the renewal community employment credit on line 3 of Part III, column (d) or (e), or line 3 of Part IV, column (d) or (f).

Line 22 Combine the amounts from Part III, line 3, column (e), with the sum of the non-passive activity credit amounts in Part IV, line 3, column (f). The carryforward and carryback for Form 8844 will flow to this line.

Line 23 Enter the passive activity credit from Part III, line 3, column (d), plus the sum of the passive activity credit amount in Part IV, line 3, column (d).

Line 24 Enter the applicable passive activity credit amount for the empowerment zone and renewal community employment credit allowed from Form 8582-CR or Form 8810. The passive activity credit amount allowed on Part II, line 24, only applies to the

6 Instructions for Form 3800 (2025)

empowerment zone and renewal community employment credit reported on Part III, line 3, plus any prior year unallowed passive activity empowerment zone and renewal community employment credit. See the instructions for the applicable form for details. If no credits are allowed, enter -0- on line 24.

Line 25 Add lines 22 and 24. If you have amounts on both line 23 and line 24, the total on line 25 will be comprised of both non-passive and passive credit amounts. Attach a statement providing a breakdown of the non-passive and passive credit amounts on line 25.

Caution: Passive activity credit amounts can generally only be used to offset positive passive activity income.

Section C Figuring the Specified Credit Amount Allowed Under Section 38(c)(4)

Line 30 Enter the general business credit from Part III, line 5. Combine column (e) with non-passive amounts in column (f). Do not take into account any amount in column (f) from passive activities. See Caution under Line 1, earlier.

Line 32 Enter the sum of passive activity credits from Part III, line 5. Combine column (d) with passive amounts in column (f). Do not take into account any amount in column (f) from non-passive activities. Also, include passive specified credit carryovers from Part IV, column (d), line 5. See Transferee taxpayer under Transferees of Eligible Credits Under Section 6418 .

Line 33 Enter the applicable current-year and carryover passive activity credit amount for general business credits allowed against TMT from Form 8582-CR or Form 8810. The passive activity credit amount allowed on line 33 includes only the general business credits on line 32. If no credits are allowed, enter -0- on line 33.

Line 34 Enter the amount of all carryforwards to 2025 of unused credits that are reported from Part IV, line 5, column (f).

Check the box. For each credit entered on line 34, if the credit amount was changed or revised from the amount originally reported, check the box on this line and see Required statement .

Note: Individuals claiming the research credit from a sole proprietorship or pass-through entity don’t include any carryforward of that credit on Part II, line 34, before figuring the limitation on Part III, line 1c, and line 4i. Include the carryforward when figuring the research credit limitation on lines 1c and 4i of Part III. Then, include the allowable carryforward amount on Part II, line 34. See the instructions under Required statement .

Adjustment for the payroll tax credit. A qualified small business that elected on Form 6765 to claim a portion of its research credit as a payroll tax credit must reduce its research credit carryforward by the amount elected as a payroll tax credit.

Line 35 Generally, use Part II, line 35, only when you amend your 2025 tax return to carry back unused credits from 2026. Enter the carryback amount that is reported in Part IV, line 5, column (f). You may not carry back specified credits, including ESB credits, to any tax year before the first tax year for which that specified credit was allowed against TMT unless it is a credit listed in section 6417(b).

Note: Individuals claiming the research credit from a sole proprietorship or pass-through entity don’t include any carryback

of that credit on Part II, line 35, before figuring the limitation on Part III, line 4i. Include the carryback when figuring the research credit limitation on Part III, line 4i. Then, include the allowable carryback amount on Part II, line 35. See the required statement, later, and attach the statement to your return.

Section D Credits Allowed After Limitations

Line 38 If the sum of Part II, line 38; and Part III, line 6, column (j), is smaller than the sum of Part I, lines 1, 3, and 4; and Part II, lines 30, 33, and 34 (carryforwards and current business credits only), see Carryback and Carryforward of Unused Credit, earlier.