Instructions For Form 3800 - General Business Credit

2 0 07

Department of the Treasury

Internal Revenue Service

Instructions for Form 3800

General Business Credit

•

Section references are to the Internal

You filed a joint return in the credit

Carryback and

Revenue Code unless otherwise noted.

year, but filed a joint return with a

Carryforward of Unused

different spouse in the carryback or

carryforward year; or

Credit

What’s New

•

You were married and filed a

separate return in the credit year, but

If you cannot use part or all of the credit

The following general business credits

filed a joint return with the same or a

because of the tax liability limit (line 19

were removed from line 1:

is less than line 8), carry the unused

different spouse in the carryback or

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The enhanced oil recovery credit

credit back one tax year. To carry back

carryforward year.

(Form 8830) is completely phased out

an unused credit, file an amended

due to the high price of crude oil.

Determine your separate tax liability

return (Form 1040X, 1120X, or other

•

in the carryback or carryforward year as

The work opportunity credit (Form

amended return) for the prior tax year

follows.

5884) is now allowed to offset

or an application for tentative refund

alternative minimum tax.

(Form 1045, Application for Tentative

1. Figure your tax for the carryback

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The credit for employer social

Refund, or Form 1139, Corporation

or carryforward year as though you

security and Medicare taxes paid on

Application for Tentative Refund).

were married filing a separate return.

Generally, if you file an application for a

certain employee tips (Form 8846) is

2. Figure your spouse’s tax in that

tentative refund, it must be filed by the

now allowed to offset alternative

year as though he or she was married

end of the tax year following the tax

minimum tax.

filing a separate return.

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year in which the credit arose.

The credits for employers affected by

3. Add the amounts in steps 1 and

Hurricane Katrina, Rita, or Wilma (Form

Note. No part of the unused credit for

5884-A) have expired.

any year attributable to any credit shall

4. Divide the amount in step 1 by

be carried back to any tax year before

the amount in step 3. The result should

Line 1u has been designated for the

the first tax year for which that credit

be rounded to at least three decimal

Hurricane Katrina housing credit from

was first allowable. See Credit Ordering

places.

pass-through entities.

Rule on page 2 to determine which

5. Multiply the decimal in step 4 by

credits are allowed first.

the total tax shown on your joint return

General Instructions

for the carryback or carryforward year.

If you have an unused credit after

The result is your separate tax liability

carrying it back, carry it forward to each

Who Must File

and a carryback or carryforward credit

of the 20 tax years after the year of the

is applied against this amount only.

You must file Form 3800 to claim any of

credit. Any qualified business credits

the general business credits listed on

(as defined in section 196(c)) that are

Although your carryback or

lines 1a through 1x. Five of the general

unused after the last tax year of the

carryforward of the credit is limited to

business credits have special tax

20-year carryforward period (or at the

your separate tax liability, the amount

liability limits and are not reported on

time an individual taxpayer dies or other

of your refund resulting from the

Form 3800. These are:

taxpayer, such as a corporation or

carryback or carryforward is further

partnership, ceases to exist) may be

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The empowerment zone and renewal

limited to your share of the joint

taken as a deduction in the earlier of:

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community employment credit from

overpayment. This is found by

The tax year following the last tax

Form 8844;

subtracting your separate tax liability

year of the 20-year carryforward period

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The work opportunity credit from

(as determined above) from your

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Form 5884;

contribution toward the payment.

The tax year in which the individual

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The credit for alcohol used as fuel

taxpayer dies or other taxpayer ceases

Unless you have an agreement or

from Form 6478;

to exist.

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clear evidence of each spouse’s

The renewable electricity, refined

contribution toward the payment of the

coal, and Indian coal production credit

Change in Filing or Marital

joint liability, your contribution includes

from Section B of Form 8835; and

Status

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the tax withheld on your wages and

The credit for employer social

your share of the joint estimated tax or

Your general business credit is limited

security and Medicare taxes paid on

tax paid with the return. Your share of

to your tax liability. Therefore, if you

certain employee tips from Form 8846.

these payments is found by using the

filed a joint return in a carryback or

same formula used in determining your

If your only source of credits listed

carryforward year and your marital

separate tax liability. Substitute the joint

on Form 3800 is from pass-through

status or filing status has changed, you

estimated tax, or tax paid with the

entities, you may not be required to

may need to figure your separate tax

return, for the tax in step 5. If the

complete the source credit form.

liability in that carryback or carryforward

original return for the carryback year

Instead, you may be able to report the

year. This would apply if:

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resulted in an overpayment, reduce

credit directly on Form 3800. For more

You filed as single in the credit year,

your contribution by your share of the

details, see Part I. Current Year Credit

but filed a joint return in the carryback

refund.

on page 2.

or carryforward year;

Cat. No. 10622Q

Instructions For Form 3800 - General Business Credit - 2007

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