Who Must File — 2025 Inst 990-T (PDF)

Organizations With Current Unrelated Business Taxable Income (UBTI)

Any disregarded entity, domestic, or foreign organization exempt under section 501(a), section 529(a), or section 529A(a), if it has gross income of

2 Instructions for Form 990-T (2025)

$1,000 or more from a regularly conducted unrelated trade or business (see Regulations section 1.6012-2(e)). Gross income is gross receipts minus the cost of goods sold, (see Regulations section 1.61-3). For a discussion of cost of goods sold, see Schedule A (Form 990-T), Part III. Cost of Goods Sold , later.

Caution: The gross receipts from a gaming business include all amounts wagered in games, not just the net proceeds after payment of prizes and other expenses. Cash prizes aren’t included in cost of goods sold, but are reported on Schedule A, Part II, line 14, as other deductions.

Caution: A disregarded entity, as described in Regulations sections 301.7701-1 through 301.7701-3, is treated as a branch or division of its parent organization for federal tax purposes. Therefore, financial information applicable to a disregarded entity must be reported as the parent organization’s financial information.

Colleges and universities of states and other governmental units, and subsidiary corporations wholly owned by such colleges and universities that have gross income of $1,000 or more from a regularly conducted unrelated trade or business. However, a section 501(c)(1) corporation that is an instrumentality of the United States and both organized and exempt from tax by an Act of Congress doesn’t have to file.
Qualified tuition programs described under section 529 that have $1,000 or more of unrelated trade or business gross income.
Qualified ABLE programs described under section 529A that have $1,000 or more of unrelated trade or business gross income.
Trustees for the following trusts that have $1,000 or more of unrelated trade or business gross income.

Individual retirement accounts (IRAs), including traditional IRAs described under section 408(a).
Simplified employee pension IRAs (SEP IRAs) described under section 408(k).
Savings incentive match plan for employees of small employers IRAs (SIMPLE IRAs) described under section 408(p).
Roth IRAs described under section 408A.
Coverdell education savings accounts (ESAs) described under section 530.
Archer medical savings accounts (Archer MSAs) described under section 220.
Health savings accounts (HSAs) described under section 223.

Caution: Each account of a type listed above is treated as a separate trust for unrelated business income tax purposes (even if there is a single owner or beneficiary for multiple accounts) and must have its own employer identification number (EIN) if it will file Form 990-T to report gross unrelated business taxable income of $1,000 or more. A custodian is treated as a trustee. See section

408(h). Individual retirement annuities, unlike IRAs, aren’t subject to unrelated business income tax.

Tip: IRAs and other tax-exempt shareholders in a RIC or REIT filing Form 990-T, only to obtain a refund of income tax paid on undistributed long-term capital gains should complete Form 990-T, as explained in IRAs and other tax-exempt shareholders in a RIC or REIT , later.

Applicable Entities Making an Elective Payment Election Section 6417 allows applicable entities to make an elective payment election to treat applicable credits as a payment of tax. See T.D. 9988 available at IRS.gov/irb/ 2024-15_IRB#TD-9988 for information and resources.

Applicable entities. An applicable entity is defined as any of the following.

An organization exempt from the tax imposed by subtitle A by reason of subchapter F of chapter 1 of subtitle A.
The government of any U.S. territory or political subdivision or instrumentality thereof.
Any state, the District of Columbia, or a political subdivision or instrumentality thereof.
The Tennessee Valley Authority.
An Indian tribal government or a subdivision or instrumentality thereof.
Any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(m))).
Any corporation operating on a cooperative basis that is engaged in furnishing electric energy to persons in rural areas.

Applicable credits. Applicable credits eligible for the elective payment election include:

Qualifying advanced energy project credit (Form 3468, Part III),
Clean electricity investment credit (Form 3468, Part V),
Energy credit (Form 3468, Part VI),
Advanced manufacturing production credit (Form 7207),
Clean hydrogen production credit (Form 7210),
Clean electricity production credit (Form 7211),
Zero-emission nuclear power production credit (Form 7213, Part II),
Clean fuel production credit (Form 7218),
Renewable electricity production credit (Form 8835, Part II),
Credit for alternative fuel vehicle refueling property credit (Form 8911, Part I),
Carbon oxide sequestration credit (Form 8933), and
Commercial clean vehicle credit (Form 8936, Part V).

Note: Go to IRS.gov/ElectivePay , and refer to Elective pay and transferability frequently asked questions 13 and 14 for more specific information regarding eligibility.

Pre-filing registration requirement. Before you file Form 990-T, if you intend to make an elective payment election for one or more applicable credits, you must complete a pre-filing registration for each property or facility. To register, go to IRS.gov/credits-deductions/

Instructions for Form 990-T (2025) 3

register-for-elective-payment-or-transfer-of-credits . See Pub. 5884, Inflation Reduction Act (IRA) and CHIPS Act of 2022 (CHIPS) Pre-Filing Registration Tool. Also, see Registering For and Making EPEs and Transfer Elections in the Instructions for Form 3800.

Organizations With or Without Current UBTI

Elective payment election. Form 990-T filed by an applicable entity making an elective payment election with respect to one or more applicable credits, and eligible taxpayers making an elective payment election with respect to the advanced manufacturing investment credit under section 48D must complete and attach Form 3800, General Business Credit, as well as the required form(s) on which you compute each individual credit. If filing Form 990-T solely to make the elective payment election, see Elective payment election only under Which Parts to Complete , later.

Proxy tax. Organizations liable for the proxy tax on lobbying and political expenditures, see Part II, Line 3 , later, for a discussion of the proxy tax. If your organization is only required to file because of the proxy tax, see Proxy tax only under Which Parts To Complete, later.

Other taxes or amounts. Organizations that are liable for other taxes (such as tax deferred under section 1291 (Form 990-T, Part II, line 4) or section 1294 (Form 990-T, Part III, line 4)), or organizations liable for other amounts due (or entitled to a refund of, or credit for other amounts), see a discussion of these items, later. If your organization is required to file Form 990-T only because of these taxes or other amounts, see Other taxes under Which Parts To Complete, later.

Qualified opportunity investment (annual report). Organizations that deferred a capital gain into a qualified opportunity fund (QOF) must file Form 990-T with the applicable Schedule D, Form 8949, and Form 8997 attached. Each such organization must file Form 990-T with Form 8997 attached annually until the organization disposes of the investment. See the Instructions for Form 8997.

Tip: If you are filing Form 990-T for the limited purpose of the elective payment election, because of the proxy tax, other taxes, or only to claim a refund, go directly to Elective payment election only, Proxy tax only, Other taxes , or Claim for refund , later. If you are filing Form 990-T only to claim the credit for small employer health insurance premiums, see the instructions for Part III, Line 6f , later.