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2011

Department of the Treasury

Internal Revenue Service

Instructions for Form 3800

General Business Credit

Special Rules for Eligible

Treatment of partners and S

Section references are to the Internal

corporation shareholders. General

Revenue Code unless otherwise noted.

Small Business Credits

business credits determined for a

partnership or S corporation cannot be

(ESBCs)

treated as ESBCs unless both the

What’s New

ESBCs. ESBCs determined in tax year

partnership or corporation and partner or

2010 can offset both regular tax and

shareholder meet the gross receipts test

1. Form 3800 has been redesigned.

AMT. Any unused ESBCs determined in

as discussed under Eligible small

The redesign includes:

tax year 2010 are carried back five years

business defined above for the tax year

and are used to offset regular tax and

that the credits are treated as current year

a. Part I is now titled Current Year

AMT in the carryback years. Generally,

general business credits.

Credit for Credits Not Allowed Against

ESBCs mean the sum of the general

Tentative Minimum Tax (TMT). The

Carryback and

business credits determined for the tax

credits previously reported in Part I, lines

year with respect to an eligible small

Carryforward of

1a through 1bb are now reported in Part

business. However, the new hire retention

III, lines 1a through 1bb.

credit (reported on Part III, line 1aa) is not

Unused Credit

an ESBC.

b. The passive activity limit and

If you cannot use part or all of your

carryover amounts for all general

Eligible small business defined. For

general business credit because of the

business credits are now reported on

purposes of the Small Business Jobs Act

tax liability limit (line 38 is less than the

Form 3800.

of 2010, an eligible small business is:

sum of Part I, line 6, and Part II, lines 24

•

A corporation whose stock is not

c. A new Part III is added to reflect all

and 36), carry the unused credit back one

publicly traded,

the general business credits that are

year (see Special 5-year carryback rule

•

A partnership, or

for ESBCs below). To carry back an

reported on Form 3800 and to identify the

•

A sole proprietorship.

unused credit, file an amended return

type of credit being reported. In addition,

(Form 1040X, Amended U.S. Individual

if a credit is being reported from a

The average annual gross receipts of

Income Tax Return, Form 1120X,

pass-through entity, the employer

the corporation, partnership, or sole

Amended U.S. Corporation Income Tax

identification number (EIN) of the

proprietorship for the 3-tax-year period

Return, or other amended return) for the

pass-through entity must be entered in

preceding the tax year of the credits

prior tax year or an application for

Part III.

cannot exceed $50 million. Gross receipts

tentative refund (Form 1045, Application

for any tax year must be reduced by

2. The employer housing credit is no

for Tentative Refund, or Form 1139,

returns and allowances made during the

longer applicable and is removed from

Corporation Application for Tentative

year. Any reference to your business also

Part III, line 1.

Refund). Generally, if you file an

includes a reference to any predecessor

application for a tentative refund, it must

3. The IRS has created a page on

of your business.

be filed by the end of the tax year

IRS.gov for information about Form 3800

following the tax year in which the credit

If your business was not in existence

and its instructions at

arose.

for the entire 3-year period, base your

Information about

average annual gross receipts on the

any future developments affecting Form

The new hire retention credit

period your business existed. Also, if your

3800 (such as legislation enacted after

cannot be carried back to tax

TIP

business had a tax year of less than 12

we release it) will be posted on that page.

years beginning before March 18,

months, your gross receipts must be

2010.

annualized by multiplying the gross

receipts for the short period by 12 and

Special 5-year carryback rule for

General Instructions

dividing the result by the number of

ESBCs. To carry back unused ESBCs

months in the short period.

determined in the first tax year beginning

Who Must File

in 2010, file an amended return (Form

Member of controlled group,

1040X, Form 1120X, or other amended

business under common control, or

You must file Form 3800 to claim any of

return) for the prior tax year or an

affiliated group. For purposes of the

the general business credits.

application for tentative refund (Form

gross receipts test, all members of a

1045 or Form 1139). Write “SBJA 2012”

controlled group of corporations (as

at the top of the form you use to file the

If your only source of credits listed on

defined in section 52(a)) and all members

amended return.

Form 3800, Part III, is from pass-through

of a group of businesses under common

entities, you may not be required to

control (as defined in section 52(b)), are

Carry back any unused ESBC by

complete the source credit form. Instead,

treated as a single person; and all

reporting it on the 2006 Form 6478, Credit

you may be able to report the credit

employees of the members of an affiliated

for Alcohol Used as a Fuel, line 10. Any

directly on Form 3800. For more details,

service group (as defined in sections

carryback of the ESBC not used in 2006

see Part III. General Business Credits or

414(m) and (o) shall be treated as

can be carried to 2007 (the next earliest

Eligible Small Business Credits, later.

employed by a single person.

carryback year), and so on, by including

Dec 13, 2011

Cat. No. 10622Q

Instructions For Form 3800 - General Business Credit - Internal Revenue Service - 2011

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