Form 3468 Investment Credit

Introduction

Form 3468, Investment Credit, allows businesses and tax-exempt organizations to claim credits for certain qualifying investments, including those in renewable energy, rehabilitation, and historic preservation projects. This form allows you to claim investment credits that may reduce your UBIT liability.

For tax-exempt organizations filing 990-T, Form 3468 can offset unrelated business income tax (UBIT) through eligible investment credits. When filed alongside Form 990-T, this form supports organizations and businesses in maximizing their tax benefits while encouraging investments in socially and economically beneficial projects.

In this resource guide, we'll delve into the filing purpose of Form 3468, identify the entities required to file, who must file, and address common questions.

What is Form 3468?

Form 3468 is used to claim a credit for each investment property and any unused investment credit amount from cooperatives. The purpose of the form is to help taxpayers offset the cost of qualified investments through tax credits, thereby reducing their overall tax liability.

These credits can be claimed for various investments, such as energy property, new equipment, and qualified rehabilitation expenditures. They not only reduce tax liability but also encourage businesses and organizations to invest in sustainable and economically positive initiatives.

Who must file Form 3468?

Generally, any organization that is subject to UBIT and has claimed investment credits must file Form 3468. This includes

• Businesses and Organizations: Entities that invest in qualifying rehabilitation, renewable energy, or advanced energy projects.
• Tax-Exempt Organizations with UBIT: Tax-exempt organizations filing Form 990-T can file Form 3468 if they have unrelated business income and meet the requirements for investment credits.
• Partnerships and Corporations: Partnerships, S-corporations, and corporations investing in qualifying projects must file Form 3468 to claim their investment credits.

Choose TaxZerone to complete your Form 3800 filing

TaxZerone simplifies the complex process of Form 3468 filing. Our user-friendly platform guides you through each step, ensuring accuracy and efficiency.

Here’s why TaxZerone is the right choice for your organization:

• Intuitive Guidance: Step-by-step instructions make it easy to fill out Form 3468 accurately.
• Experienced Support: Our experts are ready to answer questions on eligibility, documentation, and form requirements.
• Secure Platform: TaxZerone protects your sensitive information with advanced encryption and security features.

Here’s how your Form 990-T return with Form 3468 attachment is transmitted to the IRS in 3 simple steps!

1. Provide Organization Details - Choose the tax year for which you want to file the 990-T return, and provide your organization’s details.
2. Preview Form 3468 - Attach Form 3468 to claim investment credit for your organization and preview the information provided in the return for accuracy before transmitting.
3. Transmit to the IRS - Transmit Form 3468 along with your 990-T Return to the IRS and get the acceptance in just a few hours.

At TaxZerone, we go beyond just filing – we're here to make your entire experience seamless and stress-free.

Even if the IRS rejects your return, there's no need to worry! TaxZerone has your back with a hassle-free correction and retransmission process, all at no extra charge!