IRS offers relief on renewable energy tax credit reporting

The U.S. Internal Revenue Service (IRS) Division of Large Businesses and International Activities is offering businesses that claim tax credits for renewable energy and electricity projects a faster way to report their 2023 tax returns on Forms 3468 and 8835.

Form 3468 is an investment loan and Form 8835 concerns a loan for the production of renewable energy.

For tax year 2023, if they have more than 200 Form 3468s or 200 Form 8835s, they can submit a single Form 3468 or Form 8835 with the cumulative credit amounts on the form. Taxpayers will need to attach a Portable Document Format document that includes all the required information for the form for each facility or property. The IRS said to name the file “CleanEnergyRelief.pdf.”

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If there are multiple PDF files, taxpayers should add a sequence number to the end of the file name, such as “CleanEnergyRelief1.pdf” and “CleanEnergyRelief2.pdf.”

This relief also applies to shareholders or partners of pass-through entities.

Under the Inflation Reduction Act, taxpayers are required to file separate Forms 8835 and 3468 for each property or asset for which they are claiming the tax credit.

“The IRS is aware of taxpayer concerns about the inability to import data onto forms,” an IRS spokesperson said in an email Wednesday.