Elective Pay and Transfer Election Pre-Filing Registration User Guide

• The difference between an investment tax credit and a production tax credit. Sections 6417 and 6418 include provisions relating to both types of credits, and section 48D is an investment tax credit. To register successfully, you need to know which credits the taxpayer can and wishes to monetize, especially when the taxpayer may have the option to monetize an investment tax credit, or a production tax credit based upon a single investment/activity.

  • How to earn each type of credit.

  • How to compute and report each type of credit on the registrant’s tax return.

See Appendix A – General Business Credit Resources for a list of resources for credit-specific information.

Also assumed is a basic understanding of the credits to which elective payment and transfer elections apply, and:

• Which return to use to make an elective payment or transfer election.

• How to compute and report the credits on the tax return (credit-specific forms, Form 3800).

• How to transfer an eligible credit.

See Appendix B – Elective Pay and Transfer Election Resources for resources on the specific subject of monetization of certain credits through elective payment or transfer elections.