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Department of the Treasury
Internal Revenue Service
2023

Instructions for Form 8835

Renewable Electricity Production Credit

Section references are to the Internal Revenue Code • Extended and modified the existing production credit for
unless otherwise noted. applicable renewable energy. Form 8835 will be used by
filers to claim the section 45 credit for existing and new
Future Developments facilities.
For the latest information about developments related to • Solar energy facilities placed in service after 2021 are
Form 8835 and its instructions, such as legislation reinstated as eligible for the credit.
enacted after they were published, go to IRS.gov/ • Facilities satisfying the Prevailing Wage and
Form8835. Apprenticeship Requirements Domestic Content Bonus ,
Credit Amount requirements, and Energy Community
What’s New requirements are eligible to increase the credit.
Credit amounts. The Inflation Reduction Act of 2022 Expired credits. The credit period for refined coal
(IRA 2022) changed the manner in which section 45 credit produced at a refined coal production facility and Indian
amounts are calculated on the sale of electricity produced coal produced at an Indian coal production facility expired
in any qualified facility placed in service after December after 2021. Accordingly, the title of Form 8835 has been
31, 2021. For more information, see Notice 2023-51, changed to “Renewable Electricity Production Credit.”
available at IRS.gov/irb/2023-30_IRB#NOT-2023-51.
Credit reduced for tax-exempt bonds. Section 45(b)(3) General Instructions
modifies the credit rate reduction for grants, subsidized
energy financing, and other credits, and changes the Purpose of Form
computation. See Credit Reduced for Tax-Exempt Bonds, Use a separate Form 8835 to claim the credit for electricity
later. that you produced from certain renewable resources at
each qualified facility. Complete Part I to report facility
Clean hydrogen production credit. This credit has information. Complete Part II to calculate the credit. The
been removed from this form and will now be claimed on credit is allowed only for the sale of electricity produced in
Form 7210, Clean Hydrogen Production Credit. See the the United States or U.S. territories from qualified energy
Instructions for Form 7210 for more information. resources at a qualified facility.
Facility information. Form 8835 and its instructions Taxpayers, applicable entities, partnerships, and S
were changed to require separate information and corporations must file a separate form for each qualified
computation of the renewable electricity production credit facility that is used in your trade or business to claim the
for each facility. See Facility Information, later. credit. All others are generally not required to complete or
Offshore wind facility. The electricity produced at a file this form if their only source for this credit is from a
qualified offshore wind facility will be claimed on line 1e. partnership, S corporation, estate, trust, or cooperative.
Instead, they can report their share of the credit directly on
Tax-exempt and governmental entities. For tax years
Form 3800, General Business Credit. The following
beginning after 2022, applicable entities (such as certain
exceptions apply.
tax-exempt and governmental entities) can elect to treat
the renewable electricity production credit as a payment of • You are an estate or trust and the source credit can be
allocated to beneficiaries. For more details, see the
income tax. See Applicable entities, later.
instructions for Form 1041, Schedule K-1, box 13, code J.
Credit transfers. For tax years beginning after 2022, • You are a cooperative and the source credit can or must
eligible taxpayers, partnerships, and S corporations can be allocated to patrons. For more details, see the
elect to transfer all or part of the credit amount otherwise instructions for Form 1120-C, Schedule J, line 5c.
allowed as a general business credit to an unrelated
third-party buyer in exchange for cash. Eligible taxpayers Election To Treat a Qualified Facility as Energy
don't include applicable entities. See Credit transfers, Property
later. Section 48(a)(5) provides an irrevocable election to treat
Pre-filing registration. The IRS has established a qualified property (described in section 48(a)(5)(D)) that is
pre-filing registration process that must be completed prior part of a qualified investment credit facility (described in
to electing payment or transfer of the renewable electricity section 48(a)(5)(C)) as energy property eligible for the
production credit. See Pre-filing registration requirement investment credit (reported on Form 3468, Investment
for payment or transfer, later. Credit, Part VI) instead of a production credit reportable
on this form. This election applies to a facility:
Reminders • That is a qualified facility under section 45(d)(1), (2),
(3), (4), (6), (7), (9), or (11) that is placed in service after
Inflation Reduction Act of 2022 (IRA 2022). IRA 2022
2008 and the construction of which begins before 2025.
made several changes to the renewable electricity
See Construction of a Qualified Facility, later;
production credit.

Jan 25, 2024 Cat. No. 55349M

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• For which no credit has been allowed under section 45; 1.4 cents per kWh on the sale of electricity produced from
and the qualified energy resources of open-loop biomass,
• For which a taxpayer has made an irrevocable election landfill gas, trash, qualified hydropower, and marine and
to treat the facility as energy property. hydrokinetic energy.
See Notice 2009-52 and the Instructions for Form 3468 • Qualified facilities placed in service after 2021.
From qualified energy resources of wind, closed-loop
for information on making the election. Notice 2009-52 is
biomass, geothermal energy, and solar energy, 0.55 cents
available at IRS.gov/irb/2009-25_IRB/ar09.html.
per kWh, and 0.3 cents per kWh on the sale of electricity
Coordination With Department of Treasury produced from the qualified energy resources of
open-loop biomass, landfill gas, trash, qualified
Grants hydropower, and marine and hydrokinetic renewable
If a grant is paid under the American Recovery and energy.
Reinvestment Act of 2009, section 1603 grant, for placing • Qualified facilities placed in service after 2022.
into service specified energy property (described in From qualified energy resources of qualified hydropower
section 1603(d)), no production credit under section 45, or and marine and hydrokinetic renewable energy, 0.55 cents
investment credit under section 48, is allowed for the per kWh.
property for the tax year in which the grant is made or any
subsequent tax year. See section 48(d) for more Applicable entities. For tax years beginning after 2022,
information. applicable entities (as defined under section 6417(d)(1)
(A)) that generally don't benefit from income tax credits
You may not partition the basis of property for which a can elect to treat the renewable electricity production
section 1603 grant was received and claim a production credit for a facility originally placed in service after
credit under section 45 or investment credit under section December 31, 2022, as a payment of income tax.
48 for any part of the basis of that property. However, you Resulting overpayments may result in refunds.
must reduce the basis of the specified energy property by Applicable entities making the elective payment
50% of the amount of the actual section 1603 grant. election for the renewable electricity production credit
You may have to refigure the investment credit and must file the following:
recapture all or a portion of it if a section 1603 grant was • Form 8835 and any applicable attachments,
made for section 48 property for which a credit was • Form 3800, General Business Credit, and
allowed for progress expenditures before the grant was • Form 990-T, Exempt Organization Business Income Tax
made. Recapture is applicable to those amounts Return, or other applicable income tax return.
previously included in the qualified basis for an energy For a discussion of what is an applicable entity, see
credit, including progress expenditures, that are also the Applicable entity making an elective payment election on
basis for the section 1603 grant. IRA 2022 credits in the Instructions for Form 3800. For
more information on elective payment elections under
How To Figure the Credit section 6417, see Elective Payment of Certain Business
Generally, the credit for electricity produced from qualified Credits Under Section 6417 or Section 48D in the
energy resources at a qualified facility during the 10-year Instructions for Form 3800.
period beginning on the date the facility was originally Your election to treat the credit as a payment generally
placed in service, and sold by you to an unrelated person applies to 2023 and any subsequent year during the
during the tax year (see Definitions, later), is: 10-year period described in section 45(a)(2)(A)(ii) for such
• 0.3 cents per kilowatt-hour (kWh) for a qualified facility facility. You must obtain an IRS-issued registration number
placed in service after 2021, or for the facility in 2023 and each of the succeeding years.
• 1.5 cents per kWh for a qualified facility placed in
service before 2022. Credit transfers. For tax years beginning after 2022,
under section 6418, eligible taxpayers, partnerships, and
The credit for electricity produced is proportionately S corporations can elect to transfer all or a part of the
phased out over a 3-cent range when the reference price credit figured in Part II to an unrelated third-party buyer in
exceeds the 8-cent threshold price. The 0.3 or 1.5 cent exchange for cash. For more information on credit
credit rate and the 8-cent threshold price are adjusted for transfers, see Transfer of Eligible Credits Under Section
inflation. The reference price and the inflation adjustment 6418 in the Instructions for Form 3800.
factor (IAF) for each calendar year are published during
the year in the Federal Register. If the reference price is Pre-filing registration requirement for payments or
equal to or less than the threshold price (adjusted by the transfers. Before you file your tax return, if you intend to
IAF), there is no reduction. For electricity produced, if the make an elective payment election or transfer election on
reference price is 3 cents or more over the adjusted Form 3800 for the credit figured in Part II, you must
threshold price, there is no credit; if the reference price is complete a pre-filing registration for each facility. To
more than the threshold price, but less than 3 cents over register, go to IRS.gov/Credits-Deductions/Register-for-
the adjusted threshold price, there is a phaseout Elective-Payment-or-Transfer-of-Credits. See Pub. 5884,
adjustment on line 3 (Part II). For more information, see Inflation Reduction Act (IRA) and CHIPS Act of 2022
Federal Register 2023-13191. (CHIPS) Pre-filing Registration Tool, for more information.
Also see Registering for and Making Elective Payment
Credit rates. For calendar year 2023, the effective credit and Transfer Elections in the Instructions for Form 3800.
rate for electricity produced and sold is:
• Qualified facilities placed in service before 2022.
From qualified energy resources of wind, closed-loop
biomass, and geothermal energy, 2.8 cents per kWh; and

2 Instructions for Form 8835 (2023)

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Definitions thermal energy conversion). See section 45(c)(10)(B) for
exceptions.
Construction of a Qualified Facility
Qualified Facilities
Two methods can be used to establish that construction of
a qualified facility has begun. Note. IRA 2022 generally provides that the amendments
to section 45 apply to facilities placed in service after
1. Physical Work Test is satisfied when physical work 2021. See section 13101(k) of P.L. 117-169.
of a significant nature begins and other requirements are A qualified facility is any of the following facilities owned
met. by you and used to produce electricity.
2. Five Percent Safe Harbor is satisfied when a • Wind facility originally placed in service after 1993, the
taxpayer pays or incurs (within the meaning of Regulations construction of which begins before 2025. This doesn't
sections 1.461-1(a)(1) and (2)) 5% or more of the total include any facility for which any qualified small wind
cost of the facility and meets certain other requirements. energy property expenditure (as defined in section 25D(d)
(4)) is used in determining the residential clean energy
In establishing the beginning of construction under credit.
either method, taxpayers must demonstrate either • Closed-loop biomass facility originally placed in service
continuous construction or continuous efforts towards after 1992, the construction of which begins before 2025.
placing the facility in service. A taxpayer that places a • Closed-loop biomass facility modified to co-fire with
qualified facility in service no more than 4 calendar years coal or other biomass (or both), owned by the taxpayer
after the calendar year during which construction of the and originally placed in service before 2025. The
qualified facility began will be deemed to have satisfied modification must be approved under the Biomass Power
this requirement. See Notice 2016-31 for more details. for Rural Development Programs or be part of a pilot
project of the Commodity Credit Corporation as described
Certain facilities may qualify for a longer period in which in 65 Fed. Reg. 63052. The facility will be treated as
they must be placed in service due to significant national modified before 2025, if the construction of the
security concerns, developmental delays caused by the modification begins before 2025.
COVID-19 pandemic, or Offshore and Federal Land • Closed-loop biomass facility that is a new unit placed in
Projects. See Notice 2019-43 Notice 2020-41 Notice , , service after October 3, 2008, in connection with a facility
2021-05, and Notice 2021-41 for more details. described in section 45(d)(2)(A)(i), but only to the extent
Resources means wind, closed-loop biomass, of the increased amount of electricity produced at the
open-loop biomass, geothermal energy, solar energy, facility by reason of the new unit.
municipal solid waste, qualified hydropower production, • Open-loop biomass facility using cellulosic waste, the
and marine and hydrokinetic renewables. construction of which begins before 2025.
Closed-loop biomass is any organic material from a • Open-loop biomass facility using agricultural livestock
waste nutrients originally placed in service after October
plant that is planted exclusively for use at a qualified
22, 2004, the construction of which begins before 2025,
facility to produce electricity.
and the nameplate capacity rating isn't less than 150
Open-loop biomass is solid, nonhazardous, cellulosic kilowatts.
waste material; lignin material; or agricultural livestock • Open-loop biomass facility that is a new unit placed in
waste nutrients, as defined in section 45(c)(3). See Notice service after October 3, 2008, in connection with a facility
2008-60, 2008-30 I.R.B. 178, for rules related to described in section 45(d)(3)(A), but only to the extent of
open-loop biomass, including an expanded definition of a the increased amount of electricity produced at the facility
qualified facility and rules related to sales. by reason of the new unit.
• Geothermal facility originally placed in service after
Geothermal energy is energy derived from a October 22, 2004, the construction of which begins before
geothermal deposit, as defined by section 613(e)(2). 2025. The facility doesn't include any property described
in section 48(a)(3), the basis of which is taken into
Municipal solid waste is solid waste, as defined
account by you for purposes of determining the energy
under paragraph 27 of 42 U.S.C. 6903. Municipal solid
credit under section 48.
waste doesn't include paper that is commonly recycled
and that has been segregated from other solid waste (as • Effective for solar energy facilities placed in service
after 2021 for a facility using solar energy to produce
so defined).
electricity originally placed in service after October 22,
Hydropower production means the incremental 2004, the construction of which begins before 2025. The
hydropower production for the tax year from any facility doesn't include any property described in section
hydroelectric dam placed in service on or before August 8, 48(a)(3), the basis of which is taken into account by you
2005, and the hydropower production from any for purposes of determining the energy credit under
nonhydroelectric dam described in section 45(c)(8)(C). section 48.
• Landfill gas or trash facility using municipal solid waste
Marine and hydrokinetic renewable energy means originally placed in service after October 22, 2004, the
energy derived from waves, tides, and currents in oceans, construction of which begins before 2025.
estuaries, and tidal areas; free-flowing water in rivers, • Hydropower facility producing incremental hydroelectric
lakes, and streams; free-flowing water in an irrigation production attributable to efficiency improvements or
system, canal, or other man-made channel, including additions to capacity described in section 45(c)(8)(B)
projects that utilize nonmechanical structures to placed in service after August 8, 2005, that will be treated
accelerate the flow of water for electric power production as placed in service before 2025, if the construction of the
purposes; or differentials in ocean temperature (ocean

Instructions for Form 8835 (2023) 3

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improvement or addition begins before 2025, and any              biomass facilities, if the owner isn't the producer of the 
other facility producing qualified hydroelectric production      electricity, the lessee or the operator of the facility is 
described in section 45(c)(8) placed in service after            eligible for the credit.
August 8, 2005, the construction of which begins before 
2025.                                                            Increased Credit Amount for Qualified Facilities
• Marine and hydrokinetic renewable energy facility              In the case of any qualified facility that satisfies one of the 
originally placed in service on or after October 3, 2008,        following requirements below, the amount of the credit 
the construction of which begins before 2025.                    determined will be equal to such amount multiplied by 5.
  A qualified facility doesn't include:                          • A facility with a maximum net output of less than 1 
                                                                 megawatt (as measured in alternating current).
  1. A landfill gas facility using municipal solid waste to        A facility the construction of which began prior to 
                                                                 •
produce electricity if the production from that facility is      January 29, 2023. See Notice 2022-61.
allowed as a credit under section 45K.                             A facility which satisfies the prevailing wage and 
                                                                 •
  2. A facility which produces electricity from gas              apprenticeship requirements.
produced by qualified biogas property (as defined in 
section 48(c)(7)) if a credit is allowed under section 48        Prevailing Wage and Apprenticeship 
with respect to such property for the tax year or any prior      Requirements
tax year.
                                                                 Prevailing Wage Requirements
Credit Period
                                                                 To meet the prevailing wage requirements with respect to 
                                  Credit period for facilities   any qualified facility, a taxpayer must ensure that any 
                                  placed in service after August laborers and mechanics employed by the taxpayer or any 
Eligible electricity production   8, 2005 (years from            contractor or subcontractor in:
activity:                         placed-in-service date):       • The construction of such facility, and
                                                                 • The alteration or repair of such facility (with respect to 
Wind                                    10                       any tax year, for any portion of such tax year that is within 
Closed-loop biomass                     10                       the 10-year period beginning on the date the qualified 
Open-loop biomass (including                                     facility is originally placed in service), are paid wages at 
agricultural livestock waste                                     rates not less than the prevailing rates for construction, 
nutrient facilities)                    10                       alteration, or repair of a similar character in the locality in 
                                                                 which such facility is located as most recently determined 
Geothermal                              10                       by the Secretary of Labor, in accordance with Subchapter 
Solar                                   10                       IV of chapter 31 of title 40, U.S.C. Section 45(b)(7)(B) 
Municipal solid waste (including                                 provides correction and penalty mechanisms for a 
landfill gas facilities and trash                                taxpayer's failure to satisfy the requirements under section 
combustion facilities)                  10                       45(b)(7)(A).

Qualified hydropower                    10                       Apprenticeship Requirements
Marine and hydrokinetic                 10                       To meet the apprenticeship requirements, taxpayers must 
                                                                 ensure that, with respect to the construction of any 
                                                                 qualified facility, not less than the applicable percentage of 
  United States and U.S. territories include the seabed          the total labor hours of the construction, alteration, or 
and subsoil of those submarine areas that are adjacent to        repair work (including such work performed by any 
the territorial waters over which the United States has          contractor or subcontractor) with respect to such facility is, 
exclusive rights according to international law.                 subject to section 45(b)(8)(B), performed by qualified 
                                                                 apprentices (apprenticeship labor hour requirements). 
Credit Reduced for Tax-Exempt Bonds                              The apprenticeship requirements include three 
The credit rate reduction for grants, subsidized energy          components: a labor-hours requirement, a ratio 
financing, and other credits was modified. As a result, the      requirement, and a participation requirement.
credit is reduced by an amount which is the product of the       • The taxpayer must ensure that, depending on when 
credit amount otherwise determined for the tax year and          construction began, 12.5% or 15% of the total labor-hours 
the lesser of 15% or a fraction. The numerator of the            performed in the construction, alteration, or repair of the 
fraction is the sum, for the tax year and all prior tax years,   facility are performed by qualified apprentices from a 
of proceeds of an issue of any obligations the interest on       registered apprenticeship program.
which is exempt from tax under section 103 and that is           • The taxpayer must ensure that the applicable ratio of 
used to provide financing for the qualified facility. The        apprentices to journeyworkers established by the 
denominator of the fraction is the aggregate amount of           registered apprenticeship program are met for apprentices 
additions to the capital account for the qualified facility for  working on the facility each day.
the tax year and all prior tax years as of the close of the      • Any taxpayer (or contractor or subcontractor) that 
tax year.                                                        employs 4 or more laborers or mechanics in the 
                                                                 construction, alteration, or repair of the facility must also 
Who Can Take the Credit                                          hire at least one qualified apprentice.
Generally, the owner of the facility is allowed the credit. In   Beginning of construction.     A facility must meet the 
the case of closed-loop biomass facilities modified to           prevailing wage and apprenticeship requirements to 
co-fire with coal, other biomass, or both, and open-loop 

4                                                                                        Instructions for Form 8835 (2023)

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receive the increased credit under section 45 if Line 1
construction of the facility began on or after January 29, If applicable, enter your pre-filing registration number for
2023. the facility that you received from the IRS. See Pre-filing
Establishing beginning of construction. Two methods registration requirement for payments or transfers, earlier.
can be used to establish when construction of a qualified
project has begun. Line 2a
• Physical Work Test is satisfied when physical work of a Enter a technical description of the facility or property that
significant nature begins and other requirements are met. is an integral part of such facility that uses qualified
• Five Percent Safe Harbor is satisfied when a taxpayer resources to produce electricity. If the owner of the facility
pays or incurs 5% or more of the total cost of the qualified is different from the filer, also include the owner’s name
project and meets other requirements. and taxpayer identification number.
See Notice 2022-61 for more information.
Lines 3a and 3b
Domestic Content Bonus Credit Amounts Enter the address of the facility. If the facility does not have
For qualified facilities placed in service after 2022, an an address, enter the coordinates of the facility or property
additional bonus credit equal to 10% of the amount is (longitude and latitude) on line 3b.
provided for projects that meet a domestic content
requirement. The domestic content bonus requires that Line 4
certain steel, iron, and manufactured products used in the Enter the date construction began. See Establishing
facility be domestically produced. The taxpayer needs to beginning of construction, earlier, and Notice 2022-61 for
certify that any steel, iron, or manufactured product that is more information.
a component of the qualified facility (upon completion of
construction) was produced in the United States (as Line 8
determined under section 661 of title 49, CFR). See Check the appropriate box on line 8 and attach the
Notice 2023-38, available at IRS.gov/irb/ required information to your timely filed return (including
2023-22_IRB#NOT-2023-38 for more information about extensions) to claim the increased credit amount for the
the domestic bonus credit guidance, including the qualified facilities. You must attach a separate statement
Domestic Content Certification Statement. for each qualified facility.
Additional information for increased credit amount. If
Energy Community you checked the “Yes” box in Part I, question 8a, 8b, or 8c,
For qualified facilities placed in service after 2022, if a and entered an increased credit amount on Part II, line 9,
facility is located in an energy community, the credit is you must also attach a statement to Form 8835 that
increased by 10%. Energy community means (a) a includes the following information.
brownfield site; (b) a metropolitan or non-metropolitan
1. Your name and taxpayer identification number and
statistical area which has or had at any time during the
the facility description (including owner information, if
period beginning in 2010, 0.17% or more direct
different from filer) and the IRS-issued registration number
employment or 25% or greater local tax revenues related
(if applicable) from Part I.
to the extraction, processing, transport, or storage of coal,
oil, or natural gas, and has an unemployment rate at or 2. If you checked box 8a, a statement that the facility
above the national average unemployment rate for the or property has a maximum net output of less than 1
previous year; or (c) a census tract in which after megawatt (as measured in alternating current).
December 31, 1999, a coal mine has closed, or after 3. If you checked box 8b, a statement that you met the
December 31, 2009, a coal-fired electric generating unit Continuity Requirement under the Physical Work Test or
has been retired, or a census tract directly adjoining to any the Five Percent Safe Harbor to establish the beginning of
such census tract. construction (alteration or repairs) before January 29,
2023.
See Notice 2023-29, available at IRS.gov/irb/
2023-29_IRB#NOT-2023-29, Notice 2023-45, available at 4. If you checked box 8c, include the following.
IRS.gov/irb/2023-45_IRB#NOT-2023-45, and Notice a. The location and type of the qualified facility.
2023-47, available at IRS.gov/irb/ b. The applicable wage determinations (as defined
2023-47_IRB#NOT-2023-47, for more information about below) for each classification of laborer and mechanic
the energy community bonus credit guidance under who performed work on the construction, alteration, or
section 45. repair of the facility.
Specific Instructions c. The wages paid (including any correction payments
as defined in section 45(b)(7)(B)(i)(I)) and hours worked
Part I-Facility Information for each of the laborer or mechanic classifications
If you are claiming a production credit for a qualified facility engaged in the construction, alteration, or repair of the
that uses qualified resources to produce electricity on Part facility.
II, lines 1a–1j, you must complete Part I, Facility d. The number of laborers and mechanics who
Information. received correction payments as the result of any failure to
pay the applicable prevailing wage rates.
e. The amount of penalty payments owed with respect
to any failures to pay the applicable prevailing wage rates.

Instructions for Form 8835 (2023) 5

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f. The wages paid and hours worked by qualified Line 10
apprentices for each of the laborer or mechanic Section 45(b)(11) provides an energy community bonus
classifications engaged in the construction of the facility. credit amount for a qualified facility by increasing the
g. The total labor hours for the construction of the credit amount by 10% if the qualified facility is located in
project by any laborer or mechanic employed by the an energy community.
taxpayer or any contractor or subcontractor.
See Energy Community; earlier, and Notice 2023-29,
h. The amount of hours for which you claim to have available at IRS.gov/irb/2023-29_IRB#NOT-2023-29;
satisfied the apprenticeship requirements under the Notice 2023-45; and Notice 2023-47 for details and more
good-faith effort exception. information.
i. The amount of penalty payments owed with respect
to any failure to meet the labor-hours requirement or the Part II-Renewable Electricity Production
participation requirement. Figure any renewable electricity credit from your trade or
5. A declaration, applicable to the statement and any business in Part II, lines 1–13. Skip lines 1–13 if you are
accompanying documents, signed by you, or signed by a only claiming a credit that was allocated to you from an S
person currently authorized to bind you in such matters, in corporation, partnership, cooperative, estate, or trust.
the following form: “Under penalties of perjury, I declare Fiscal year taxpayers. If you have sales in 2023 and
that I have examined this statement, including 2024 and the credit rate on line 1 (or the phaseout
accompanying documents, and to the best of my adjustment on line 3) is different for 2024, make separate
knowledge and belief, the facts presented in support of calculations for each line. Use the respective sales, credit
this statement are true, correct, and complete.” rate, and phaseout adjustment for each calendar year.
Enter the total of the calculation on the credit rate line
Applicable wage determinations. Applicable wage
(line 1) or the phaseout adjustment line (line 3). Attach the
determinations are the wage listed for a particular
calculations to Form 8835 and write “FY” in the margin.
classification of laborer or mechanic for the type of
construction and the geographic area, or other applicable Line 1
wage as determined by the Secretary of Labor. See
Notice 2022-61 for more information. Enter the kilowatt-hours of electricity produced at the
applicable qualified facilities and multiply by the applicable
Line 9 rate. See Credit rates, earlier. Fiscal year filers with 2024
sales may have to refigure line 1, as explained under
If you checked line 9a to claim the domestic content
Fiscal year taxpayers above.
bonus credit amount on Part II, line 10, you must also
attach the domestic content certification statement below Line 3
to Form 8835 with your return.
Calendar year filers enter -0- on line 3. Fiscal year filers
See Domestic Content Bonus Credit Amounts and with sales in 2024 also enter -0- if the published 2024
Notice 2023-38, available at IRS.gov/irb/ reference price is equal to or less than the 2024 adjusted
2023-22_IRB#NOT-2023-38, for guidance with respect to threshold price. See How To Figure the Credit, earlier, to
the domestic content requirement. figure the adjustment.

Domestic Content Certification Statement Lines 5a–5d
The amounts for any tax year will be determined as of the
You must attach a statement to Form 8835 for each close of the tax year. The credit reduced for tax-exempt
Applicable Project in the year placed in service and a copy bonds, as described earlier, reflects IRA 2022
of the certification statement in each of the succeeding tax amendments applicable to facilities, whose construction
years. The certification statement must include the began after August 16, 2022.
following information for the Applicable Project.
Line 9
1. Your name and taxpayer identification number
shown on the return. If you checked the line 8a, 8b, or 8c box in Part I, multiply
the amount on Part II, line 8, by 5.0. See Additional
2. The facility description (including owner information, information for increased credit amount, earlier.
if different from filer) and the IRS-issued registration
number (if applicable) of the Applicable Project from Part I. Line 10
3. A statement that any steel, iron, or manufactured If you checked the line 9a box in Part I, multiply the
product that is a component of the facility (upon amount on Part II, line 9, by 10%. See Domestic Content
completion of construction) was produced in the United Certification Statement, earlier.
States (as determined under section 661 of Title 49, Code
of Federal Regulations). Line 11
4. A declaration, applicable to the statement and any If you checked the line 10a box in Part I, multiply the
accompanying documents, signed by you, or signed by a amount on Part II, line 9, by 10%. See Energy Community,
person currently authorized to bind you in such matters, in earlier.
the following form: “Under penalties of perjury I declare
that I have examined the information contained in this Line 13
Domestic Content Certification Statement and to the best Elective payment phaseout for applicable entities. If
of my knowledge and belief, it is true, correct, and you are making an elective payment election for a facility
complete.”

6 Instructions for Form 8835 (2023)

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whose construction began in calendar year 2024, and the credit amount with respect to your facility on Form 3800,
facility does not satisfy the rules of section 45(b)(9)(B) or Part III, line 1f or 4e and not on Schedule K.
does not have a maximum net output of less than 1
megawatt (as measured in alternating current (AC)), Line 16
multiply line 12 by 90% (0.90). Cooperative election to allocate credit to patrons. A
Exception to elective payment phaseout. For cooperative described in section 1381(a) that is more than
facilities whose construction began during calendar year 50% owned by agricultural producers or by entities owned
2024, Notice 2024-09 provides transitional procedures to by agricultural producers can elect to allocate any part of
claim the statutory exceptions to the elective payment the credit among the patrons of the cooperative. The
phaseout related to the domestic content requirement. credit is allocated among the patrons eligible to share in
To substantiate your claim of exception to the elective patronage dividends on the basis of the quantity or value
payment phaseout, you must complete and attach a of business done with or for such patrons for the tax year.
statement to Form 8835. The statement must say, under
penalties of perjury, that you have reviewed the If the cooperative is subject to the passive activity rules,
requirements for the increased cost exception and the include on line 14 any renewable electricity, refined coal,
non-availability exception under section 45(b)(10)(D), and and Indian coal production credit from passive activities
have made a good faith determination that the qualified disallowed for prior years and carried forward to this year.
facility meets the requirements for the increased cost Complete Form 8810, Corporate Passive Activity Loss
exception and/or the non-availability exception, as and Credit Limitations, to determine the allowed credits
applicable. The statement must be signed by a person that can be allocated to patrons. For details, see the
with the legal authority to bind the applicable entity in Instructions for Form 8810.
federal tax matters. For more information, see Notice The cooperative is deemed to have made the election
2024-09. by completing line 16, as applicable. However, the
election isn't effective unless (a) made on a timely filed
Line 14 return (including extensions), and (b) the organization
On a separate Form 8835, enter “Credits from designates the apportionment in a written notice mailed to
Pass-Through Entities” on line 2a of Part I and report your its patrons during the payment period described in section
total distributive share from: 1382(d) or on Form 1099-PATR.
• Schedule K-1 (Form 1065), Partner’s Share of Income, If you timely file your return without making an election,
Deductions, Credits, etc., box 15 (code AB); you can still make the election by filing an amended return
• Schedule K-1 (Form 1120-S), Shareholder’s Share of within 6 months of the due date of the return (excluding
Income, Deductions, Credits, etc., box 13 (code AB); extensions). Enter “Filed pursuant to section 301.9100-2”
• Schedule K-1 (Form 1041), Beneficiary’s Share of on the amended return.
Income, Deductions, Credits, etc., box 13 (code J); and Once made, the election can’t be revoked.
• Form 1099-PATR, Taxable Distributions Received From
Cooperatives, box 12. Estates and trusts. Allocate the credit on line 15
between the estate or trust and the beneficiaries in the
Partnerships and S corporations must enter the same proportion as income was allocated and enter the
passed-through credits on line 14. Also, estates and trusts beneficiaries’ share on line 16.
that can allocate the source credit to beneficiaries, and
If the estate or trust is subject to the passive activity
cooperatives that can allocate the credit to patrons, must
rules, include on line 14 any renewable electricity, refined
enter the passed-through credits on line 14. Filers figuring
coal, and Indian coal production credit from passive
credits on earlier lines of Form 8835 must enter the
activities disallowed for prior years and carried forward to
passed-through credits on line 14.
this year. Complete Form 8582-CR, Passive Activity Credit
If you are not a filer described above, and your only Limitations, to determine the allowed credit that must be
renewable election production credit are credits passed allocated between the estate or trust and the
through to you, you can report the credits directly on Form beneficiaries. For details, see the Instructions for Form
3800, Part III, line 1f or line 4e, as applicable. 8582-CR.

Partnerships and S corporations must always report on Paperwork Reduction Act Notice. We ask for the
line 14 the above credits related to renewable electricity information on this form to carry out the Internal Revenue
production. Also, estates and trusts that can allocate the laws of the United States. You are required to give us the
source credit to beneficiaries and cooperatives that can information. We need it to ensure that you are complying
allocate the credit to patrons must always report on line 14 with these laws and to allow us to figure and collect the
the above credits related to renewable electricity right amount of tax.
production. All other filers figuring a separate credit on
earlier lines must also report the above credits on line 14. You are not required to provide the information
All others not using earlier lines to figure a separate credit requested on a form that is subject to the Paperwork
can report the above credits directly on Form 3800, Part Reduction Act unless the form displays a valid OMB
III, line 1f or line 4e. control number. Books or records relating to a form or its
instructions must be retained as long as their contents
Line 15 may become material in the administration of any Internal
Partnerships and S corporations. If you are a Revenue law. Generally, tax returns and return information
partnership or S corporation electing to transfer energy are confidential, as required by section 6103.
credit with respect to a facility or property (or portion The time needed to complete and file this form will vary
thereof) under section 6418(c), you must report the total depending on individual circumstances. The estimated

Instructions for Form 8835 (2023) 7

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burden for individual and business taxpayers filing this               If you have comments concerning the accuracy of 
form is approved under OMB control number 1545-0074                    these time estimates or suggestions for making this form 
and 1545-0123 and is included in the estimates shown in                simpler, we would be happy to hear from you. See the 
the instructions for their individual and business income              instructions for the tax return with which this form is filed.
tax return. The estimated burden for all other taxpayers 
who file this form is shown below.

Recordkeeping . . . . . . . . . . . . . . . . . . . . . 10 hr., 45 min.
Learning about the law or the form . . . . . . . .      3 hr., 10 min.
Preparing and sending the form to the IRS       . . .   3 hr., 29 min.

8                                                                      Instructions for Form 8835 (2023)

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