0125 Publ 6022 (PDF)

Official source: IRS Forms, Instructions & Publications (https://www.irs.gov/pub/irs-pdf/p6022.pdf), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

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Text version of the Completing Form 990-T for Elective Payment Only on StayExempt.irs.gov

Slide 1 - Title Page (No audio)

Slide 2: Welcome

This video is intended for taxpayers filing Form 990-T for the sole purpose of making an elective payment election under the Inflation Reduction Act to claim applicable clean energy credits.

governmental entity) as the hypothetical taxpayer and assumes you are generally familiar with applicable entity status, applicable credits and pre-filing registration. You may wish to review resources available on the EPE/TE webpage before viewing this video.

Slide 3: Objectives (text differs slightly from the audio)

This presentation will show you how an applicable entity (in this case a government

should identify itself in the heading area of its Form 990-T. It will also show you which lines must be completed on Form 990-T to make the elective payment election, and you’ll see examples of the additional forms and documentation needed to compute the various credits and carry those amounts to Form 3800 and then to Form 990-T.

presentation can be found on this page. You

in another window or as a printout.

This presentation is not intended for organizations with unrelated business taxable income (UBTI), or organizations that will file Form 990-T for a limited purpose other than the Inflation Reduction Act elective payment election.

and the Form 990-T Schedule A. Taxpayers with unrelated business taxable income use one or more Schedules A to report income, gains, deductions and losses for each separate unrelated business activity.

Taxpayers using Form 990-T solely to make elective payment elections should complete the core Form 990-T only. They will not complete or attach Schedule A of Form 990-T to the return.

At least two additional forms must accompany Form 990-T. They are:

• Form 3800, General Business Credit, and

• The applicable source credit form(s)

A completed Form 990-T is the focus of this presentation. However, before you can fill in the elective payment amount on Form 990-T, you must prepare each source credit form to calculate the specific credit amounts, then you will add that information to Form 3800, where you will calculate the elective payment election amount that you will place on Form 990-T.

Therefore, this presentation will demonstrate simple credit computations for three projects I’ll describe shortly.

The information you need to compute the credits should be found in purchase documents, contracts and other documentation related to the installation or project.

Please note that the credit computations used in this video are based on a simplified hypothetical situation and are not intended as tax advice for any specific situation. You may need to consult with a tax professional who is familiar with the computation of general business credits to prepare your own return.

Slide 5: Pre-Requisites to an EPE

The first step to making an elective payment

duction activity that qualifies for the credit.

This video is not intended as assistance regarding such activities. The examples presented here intentionally omit facts and situations where a credit enhancement (such as prevailing wage or domestic content) could apply. Similarly, the examples used in this presentation do not explore adjustments that may be required when restricted funds or tax-exempt financing are used to acquire a property/facility.

The second step is to register the intention to make elective payment elections with respect to each credit on a facility-byfacility basis.

Slide 6: Fictitious Town Hypothetical

Our hypothetical town would like to earn the following 3 types of credits:

• Section 30C, Alternative Fuel Vehicle Refueling Property Credit, from the purchase and installation of 3 electric vehicle charging stations

• Section 45W, Credit for Qualified Commercial Clean Vehicles, from the purchase of 3 electric vehicles, and

• Section 48, Energy Credit, from the purchase and installation of solar panels on 2 buildings.

Slide 7: Computation of Each Credit

Each credit is computed on its own

the instructions for each form carefully to ensure that you provide all the necessary information. As described in the previous slide, our hypothetical return involves three different types of credits so this requires three different source credit forms. We will discuss them in the order they appear on Form 3800:

• The first is Form 8911 for the electric

will include one Form 8911 with an attachment that provides details for each charging station.

• Form 8936 will be used for the electric vehicles. The return will include one Form 8936 to which three separate Form 8936, Schedules A will be attached - one for each vehicle.

• Finally, we’ll discuss two Forms 3468 – one for each solar panel installation.

Credit

The Fictious Town installed three electric vehicles stations. Two were installed at the town hall and one was added at the fire station.

Two 30-kilowatt electric vehicle stations were installed at the Town Hall at a cost of $35,250 each. They were placed in service on May 1, 2023.

The 60 kilowatt electric vehicle charging station installed at the fire station cost $52,325 and was placed in service on May 15, 2023.

Note that the kilowatt ratings of these chargers are provided simply as a means briefly to describe the properties on the attachments to Form 8911.

This slide also shows the attachment to Form 8911 that shows the detail for the amounts reported on Form 8911, Line 1.

Slide 9: Form 8911, Excerpts from Instructions

before you complete the Form 8911. Here are some key points:

• Use the January 2024 revision of Form 8911 for tax years beginning in 2023 or later.

• Note that property placed in service after 2022 will not be treated as qualified alternative-fuel-vehicle-refueling

in an eligible census tract. Worksheet 1 on page 3 of the Form 8911 instructions will help you determine whether property placed in service in 2023 or 2024 was placed in service in an eligible census tract.

Slide 10: Form 8911

On form 8911:

• Line 1 is for the total cost of alternative fuel refueling property placed in service during the tax year. You can see here that the aggregate cost of the three EV stations on Line 1 is $122,825.

• The instructions for Line 1 describe the attachment the filer must prepare showing information for the three vehicle chargers. An image of the attachment for Line 1 is shown here. Information for each charger includes the eligible census tract number, location of the charger, and the amount for each charger that is included in the total shown on Line 1.

• Line 2 is used to figure the

In this case, the business/ investment use is 100%, so

which is $122,825.

Slide 11: Form 8911

Line 3 shows the adjustment for the Section 179 expense deduction. There is no reduction for the Section 179 deduction so Line 3 will be $0

Lines 4b and 4c are used to separate the costs that may qualify for the prevailing wage/apprenticeship bonus credit from those that do not qualify. Because there is no claim by Fictitious Town to meeting the prevailing wage/apprenticeship requirement in this case, the amount for line 4b is the full amount ($122,825), and the amount for line 4c is $0.

Line 5a shows computation of the credit as 6% (0.06) of the amount shown on line 4b, which is $7,370. Line 5b is $0

Line 6 is for credit amounts subject to $100,000 per property limitation. As none of the chargers in this illustration exceeds the $100,000 per property limitation, Line 6 simply carries the credit computed on Line 5a forward.

And finally, Line 7 is the total credit amount. The instructions for Line 7 describe the attachment the filer must prepare that shows the breakdown of the credit amount computation. The attachment for Line 7 is shown on the next slide.

Slide 12: Form 8911 Attachment

This slide shows the attachment for line 7. For the current (2024) version of Form 8911, the attachment is prepared by the filer and is submitted as a PDF attachment with the return.

Slide 13: Form 8936

The Fictious Town purchased three qualified commercial clean vehicles. You’ll complete only one Form 8936 (which aggregates the credits earned from each vehicle purchase) and 3 Schedules A – one for each vehicle. The Form 8936 for this example has entries

for the Section 45W qualified commercial clean vehicle credit).

I’ll show you the Schedule A of Form 8936

the battery electric school bus.

Slide 14: Form 8936 Schedule A

Again, Schedule A (Form 8936) is required for each vehicle because the information for Schedule A is specific to each vehicle and the credit is computed separately for each vehicle. As shown here, the battery electric vehicle data for the school bus is entered on Form 8936 Schedule A.

Slide 15: Form 8936 Schedule A, Part V (slide text differs slightly from the audio)

Line 19 captures the $315,865 purchase price for the vehicle. That amount is reduced by any Section 179 deduction, which on the Fictitious Town return is $0, so we carry the full purchase price to line 21.

The school bus is a fully electric vehicle, so we enter 30% of the purchase price on line 22 (which is $94,760). However, the allowable Section 45W credit cannot exceed the difference between the purchase price and the cost of a similar internal combustion vehicle. The instructions for Form 8936 on page 3 provide links to guidance and other resources that describe how to determine the incremental cost amount for the specific type of vehicle. The amount is based upon information specific to the vehicle.

In the case of the electric school bus, the information in those resources tell us that for purposes of calculating this credit, the incremental price is $297,500. That amount is entered on line 23. We see that the incremental cost limitation does not affect the credit computation for the school bus, so we carry $94,760 to line 24. The Section 45W credit is subject to an overall limit of $7,500 for a vehicle under 14,000 pounds, or $40,000 for a larger vehicle. The electric school bus is a large vehicle, so we enter $40,000 on line 25. The amount we computed based upon the purchase price of the bus is greater than the $40,000 credit limitation. Therefore, the maximum allowable credit on line 26 is $40,000.

Slide 16: Form 3468, Part I, Facility Information

A separate Form 3468 is required for each clean energy investment. Fictitious Town is claiming a credit for two solar installations.

The same principles would apply for other clean energy investment properties that would be reported using other Parts of Form 3468.

This slide and the next two slides provide excerpts from one of the Fictitious Town Forms 3468. All the information provided on the Form 3468 can be seen in the full copy of the Form. The data needed to complete the Form 3468 should be available from the information and documentation provided by the seller or installer of each investment property, regardless of its type.

Form 3468 is used to compute and report several different energy investment credits. Every filer must provide information about the facility. Refer to the Instructions for Form 3468 to identify the lines in Part I that apply to your specific facility.

Slide 17: Form 3468, Part VI, Section B

The Section 48 credit for various types of energy credit facilities are computed in Part VI. The solar energy credit is computed in section B of Part VI. This slide shows lines 3 and 4 from Part VI section B used for the Fictitious Town return.

Slide 18: Form 3468, Part VI, Section N

Section N of Form 3468 is used for certain adjustments to the credit computed in other sections of Part VI. Those adjustments do not apply to the Fictitious Town investment. The amount of the credit computed in Section B is entered on Line 32, which is then included in the credits reported on Form 3800.

Slide 19: Form 3800 (text differs slightly from the audio)

Now that the source credits forms are complete, we are ready to prepare Form

the elective payment election amount.

An organization or entity that will file Form 990-T for the sole purpose of making an elective payment election will complete the heading area of Form 3800. If each type of credit earned is based upon a

of Form 3800 only.

For our hypothetical town, we must also complete Part V because we have more than one facility or property for each of the credits.

Slide 20: Form 3800, Part III (text differs slightly from the audio)

Starting at the top:

On Part III, line 1s is used for the credits earned from the car charging stations (and reported on Form 8911). We enter one of the pre-filing registration numbers we obtained for our vehicle charging stations in column (b).

In column (c) we indicate the number of Section 30C credits we earned. For our hypothetical, that is 3 charging stations.

In column (e) we enter the amount shown in Part II, Line 9 of Form 8911, which is the aggregate amount of our three Section 30C credits. Then, we carry the amount across to columns (h) and (i).

We can flip to Part V of Form 3800. Part V of the Form 3800 is essentially a blank page where we show detail for each credit earned.

On Part V, we enter the detail from the attachment for Form 8911, Part II, Line 7 to show each pre-filing registration number and the amount of the credit for

line. In column (a) we indicate that the amounts on those lines relate to the credits reported in Part III on line 1s, taking care to match the registration numbers with the credit amounts for each specific charging station as shown on the attachment to Line 7. The amount of each credit is entered in each of columns (d), (g) and (h).

Now we return to Part III and report the Qualified Commercial Clean Vehicle credit on line 1aa. As we did for the vehicle charging station credits, we enter one of the registration numbers we obtained for our Qualified Commercial Clean Vehicles in column (b). We enter a 3 in column (c) because the credit reported on this line is from 3 vehicles. We enter the aggregate amount of the Section 45W credit from Form 8936, Part V, Line 21 in columns (h) and (i) of Line 1aa.

Then, as we did for the Section 30C credit, we turn to Part V to provide the detail for each qualified commercial clean vehicle on lines 4 through 6. We enter “1aa” in column (a) of each of lines 4 through 6. We enter the registration number for each Qualified Commercial Clean Vehicle in column (b) and the specific credit computed for each vehicle in columns (d), (g) and (h), taking care to match the registration numbers with the right credit amount for each vehicle.

We go back to Part III. Before moving to the next page of Part III, we added the column totals on line 2.

Next on line 4a, we enter the information for the Section 48 investment credits. Unlike the credits reported on Forms 8911 and 8936, the aggregate Section 48 credit mount is not shown on a single Form 3468. We need to add the amounts from all of the Forms 3468 reported on Part VI, Section N, Line 32. In this illustration, that’s two Forms 3468 – one reporting a credit of $21,000 and the other reporting a credit of $22,500. So, we enter the sum of those amounts ($43,500) in columns (e), (h) and (i). We enter one of the registration numbers in column (b) of Line 4a. We enter 2 in column (c) (because we have two solar installations).

We turn to Part V to provide the detail from the two Forms 3468. We enter “4a” on lines 7 and 8 in column (a). We enter the registration numbers in column (b) and the corresponding credit amounts from Form 3468, Part VI, Section N, Line 32.

The next slide shows Part V of Form 3800 with all of the credit detail.

Before leaving Form 3800, we total the credit amounts on line 6 of Part III, and then carry the amount from line 6, column (i) to Form 990-T.

Slide 21: Form 3800, Part V

Now that Form

let’s move on to Form 990-T.

Slide 22: Form 990-T, Heading Area above Part 1 (text differs slightly from the audio)

Organizations filing Form 990-T to

applicable entities not subject to federal income tax and not otherwise required to file any annual tax or information return -- must complete the following lines of Form 990-T:

• The heading area above Part I, except items B, C, E, J, K and L

• Part II: the lines to complete will depend upon the type of entity

• Part III, lines 6g, 7, 10 and 11

• and the Signature area

In addition, you must complete and attach Form 3800 and all forms required to compute each applicable credit.

In the Heading Area above Part I, you are required to complete all items except items B, C, E, J, K, and L.

Use the 2023 form if you are filing for calendar year 2023 or filing for a fiscal year beginning in 2023 and ending in 2024. Fill in the tax year information at the top of the form.

Generally, to determine your tax year, check the instructions for the annual tax return you are filing. Applicable entities that do not have a federal income tax filing or Form 990 filing obligation and have not previously established a taxable year by filing an annual information or income tax return (e.g., Form 990-T to report and pay tax on unrelated business taxable income) may choose to adopt a calendar year for purposes of elective pay, regardless of their fiscal year, provided they maintain adequate books and records. This applies to state and local governments, Indian tribal governments, and their agencies, including school districts, that don’t file an income tax return and have not established a taxable year by filing an annual tax return.

In this example, Fictitious Town is filing Form 990-T using a calendar year (January 1 to December 31, 2023).

Most exempt organizations described in Section 501(c) will already have an established taxable year for purposes of filing their Form 990 information return. They must use that taxable year.

Churches that have never voluntarily filed Form 990 and have never filed Form 990-T to report unrelated business activities (such as certain fundraising or real estate investment activities) may not yet have an established taxable year. They can thus adopt a taxable for purposes of making the elective payment election.

Enter the name and address of the organization. The name and address on Form 990-T should be the same as the name and address shown on other Forms 990. You’ll check box A at the top left of the form if your organization has changed its address since it last filed a return.

Next, enter your employer identification number (EIN) in item D. Every organization or entity filing Form 990-T must have its own employer identification number. If the entity uses an EIN for employment tax filing purposes that is different from the EIN used for other filings, the individuals involved in the entity’s various tax filings should confer to ensure that there is agreement on the appropriate EIN to use for Form 990-T.

You should check box F if your organization previously filed a Form 990-T return with the IRS for a tax year and is now filing another return for the same tax year to amend the previously filed return.

In item G, check the box to indicate your organization type. In our example, Fictitious Town is a government entity and is not described in any of the other checkboxes in Item G, so Fictitious Town checks the box for 6417(d)(1)(A) Applicable entity.

An exempt organization (including a church) should check the box for “501(c) corporation” or “501(c) trust,” (depending upon how it was formed). A nonprofit corporation or unincorporated entity will select “501(c) corporation.” An organization formed as a trust will select “501(c) trust.” A public college or university (although a type of government agency or instrumentality) should use the “Public college/university” checkbox.

In item H, check the “Elective payment amount from Form 3800” box.

In the rare occurrence where a 501(c)(3) organization is filing a consolidated return with a 501(c)(2) title holding corporation, you will check the box in Item I. For additional information, see the 990-T instructions under “Consolidated returns.”

Slide 23: Form 990-T, Parts II & III (text differs slightly from the audio)

The entries for Part II depend upon the type of entity and the checkbox selected in the heading area, Item G, as shown in this chart.

• Enter zero on lines 1 and 7 if the 501(c) corporation or public college/ university checkbox is marked.

• Enter zero on line 2 and mark the checkbox for “Tax rate schedule” if the 501(c) trust, other trust, or the 6417(d)(1)(A) Applicable entity checkbox is marked.

For Part III, Line 6g, you’ll enter the total

Form 3800 Part III, line 6, column (i). See the Instructions for Form 3800 for more information.

In addition to a correctly completed Form

990-T clearly identifies the filer’s intention to make an elective payment election.

Entering the elective payment election amount from Form 3800 on any other line in Part III does not accomplish that result and is likely to delay processing of the return while the return undergoes error-correction analysis.

For line 7, enter the total amount of lines 6a through 6j (which for this return is simply the elective payment election amount from line 6g).

The credits earned are treated as a payment of tax under Internal Revenue Code Section 6417. So, for line 10, enter the amount overpaid (which is the amount of the elective payment election). And for line 11, enter the amount of line 10 you want refunded.

Slide 24: Signature area

Now let’s discuss the signature area. We left that area blank on the Fictitious Town return; however, to satisfy requirements for a complete return the IRS can process, the signature area must be completed.

For corporations, the return must be signed and dated by the president, vice president, treasurer, assistant treasurer, chief accounting officer, or by any other corporate officer (such as a tax officer) authorized to sign. Receivers, trustees, or assignees must also sign and date any return filed on behalf of the organization.

The Paid preparer area of the form should be left blank if an officer of the organization completed its return. If anyone prepares the return and doesn’t charge the organization, you should leave this area blank. Certain others who prepare the return should also not sign. For example, if a regular, full-time employee of the organization, such as a clerk, secretary, etc., prepares the form, you should leave this area blank.

Generally, anyone who is paid to prepare the organization’s tax return must sign in this area and fill in the Paid Preparer Use Only area.

The paid preparer must complete the required preparer information and:

• Sign the return in the space provided for the preparer’s signature, then

• Give a copy of the return to the organization.

Slide 25: Additional Resources and Publications

The following resources will help you make an elective payment and claim certain clean energy credits.

• Inflation Reduction Act of 2022 - See Subtitle D, Energy Security

• Chips and Science Act of 2022 - See Section 107

• Final Regulations: Elective Payment of Applicable Credits

• Elective pay and transferability

• Publication 1635, Understanding Your EIN

• Publication 5817, Elective Pay Overview

• Publication 5817-A, Rural Electric Cooperatives

• Publication 5817-B, U.S. Territorial Governments

• Publication 5817-C, Alaska Native Corporations

• Publication 5817-D, Tax-Exempt Organizations

• Publication 5817-E, State and Local Government

• Publication 5817-F, Indian Tribal Governments

• Publication 5817-G, Clean Energy Tax Incentives: Elective Pay-Eligible Tax Credits

• Credits and Deductions Under the Inflation Reduction Act of 2022

• Telephone Assistance

• Form 990-T Instructions

Slide 26: Conclusion/Summary

To summarize what we’ve discussed, remember that if you have no UBTI and you are only claiming an Elective Payment Election, you are only required to complete the following lines on Form 990-T:

• The heading area above Part I, except items B, C, E, J, K and L

entries as indicated in the chart below:

• Part III, lines 6g, 7, 10 and 11, and

• The Signature area

Don’t forget to complete and attach Form 3800 and all forms required to compute each applicable credit.

Thank you for watching this presentation from the Tax Exempt & Government Entities division of the IRS.

Publication 6022 (1-2025) Catalog Number 95309M Department of the Treasury Internal Revenue Service www.irs.gov