IRS Form 3800 (Schedule A) – In the evolving landscape of tax incentives, particularly those introduced by the Inflation Reduction Act of 2022 (IRA 2022), businesses and taxpayers have new opportunities to monetize eligible credits through transfers. IRS Form 3800 Schedule A plays a pivotal role in this process as the Transfer Election Statement. This guide breaks down everything you need to know about Schedule A, including its purpose, eligibility, filing requirements, and step-by-step completion instructions. Whether you’re a transferor looking to sell credits or a transferee acquiring them, understanding this form is essential for compliant tax credit transfers under section 6418.
What Is IRS Form 3800 Schedule A?
IRS Form 3800, known as the General Business Credit form, allows taxpayers to claim a variety of business tax credits. Schedule A is a specific attachment to Form 3800 that serves as the Transfer Election Statement. It documents the transfer of eligible credits from an eligible taxpayer (transferor) to an unrelated transferee in exchange for cash payments.
This schedule is designed for transfers of credits related to clean energy and other qualifying projects under IRA 2022 provisions. Eligible credits include, but are not limited to:
- Alternative fuel vehicle refueling property credit (section 30C(d)(1))
- Renewable electricity production credit (section 45)
- Carbon oxide sequestration credit (section 45Q, with exclusions)
- Zero-emission nuclear power production credit (section 45U)
- Clean hydrogen production credit (section 45V)
- Advanced manufacturing production credit (section 45X)
- Energy credit (section 48, with exclusions)
- Qualifying advanced energy project credit (section 48C)
- Clean electricity production credit (section 45Y)
- Clean fuel production credit (section 45Z)
- Clean electricity investment credit (section 48E)
- Small agri-biodiesel producer credit (section 40A, for fuel sold or used after June 30, 2025)
These transfers enable taxpayers who generate credits but may not have sufficient tax liability to utilize them fully to sell them to others who can.
Purpose of the Transfer Election Statement
The primary purpose of Schedule A is to provide a standardized format for reporting the details of a tax credit transfer under section 6418. It ensures that both parties—the transferor and transferee—document the transaction accurately, including the amount transferred, payment details, and compliance attestations. This statement is crucial for validating the transfer and allowing the transferee to claim the credit on their tax return.
Without a properly completed and attached Schedule A (or an equivalent document), the transfer may be invalidated. It also helps the IRS track compliance with requirements like prevailing wage, apprenticeship, and domestic content rules for bonus credits.
Who Must File IRS Form 3800 Schedule A?
Schedule A must be filed by:
- Transferors: Eligible taxpayers electing to transfer credits under section 6418. This includes businesses generating IRA 2022 credits who choose to sell all or part of them.
- Transferees: Unrelated taxpayers receiving the transferred credits, including noncorporate entities, personal service corporations, closely held corporations, partnerships, or S corporations. If a partnership or S corporation is the transferee, they must attach Schedule A to their Form 1065 or Form 1120-S.
- Partners/Shareholders: Individuals or entities receiving an allocable share of transferred credits from a transferee partnership or S corporation via Schedule K-1 (using code BC).
Filing is required if there’s an entry in Part III, column (f) of Form 3800 for a section 6418 transfer. Transferees must also consider passive activity rules under sections 38 and 469, potentially requiring Form 8582-CR or Form 8810.
Note: Transfers are only allowed between unrelated parties (as defined under sections 267(b) or 707(b)(1)). Credits transferred cannot be claimed under the elective payment election (section 6417).
How to Complete IRS Form 3800 Schedule A: Step-by-Step Guide?
Completing Schedule A requires careful attention to detail. Both the transferor and transferee must attach identical copies to their respective tax returns. For electronic filing, complete all lines except the signature block, sign the form, save it as a PDF named “Schedule A Form 3800,” and attach it. Unsigned forms invalidate the transfer.
Here’s a breakdown of key lines:
Header Information
- Enter the name, address, and taxpayer identification number (TIN) of both the transferee and the eligible taxpayer (transferor). If part of a consolidated group, provide details for the relevant member.
Line 1: Source Credit Form
- Check the box corresponding to the form used to determine the transferred credit (e.g., Form 7207 for advanced manufacturing production credit). This identifies the specific credit being transferred.
Line 2: Registration Number
- Enter the IRS-issued transfer registration number for the credit or facility. Pre-filing registration is mandatory via the IRS portal at IRS.gov/Register for Elective Payment or Transfer of Credits. Registration must be renewed annually, and changes (e.g., ownership) require amendments.
Line 3: Transferred Credit Amount
- Report the total amount of the credit sold by the transferor to the transferee in the current year. This matches the negative amount in column (f) on the transferor’s Form 3800, Part III, and the positive amount on the transferee’s.
Line 4: Cash Consideration
- On line 4a, enter the payment amount and date. Use additional lines (4b–4h) for multiple payments related to the same transfer.
Line 13: Attestations
- Line 13a (Transferor): Attest under penalty of perjury that the information is true, complete, and accurate, and that all required documentation has been provided to the transferee.
- Line 13b (Transferee): Attest under penalty of perjury that the information is true, complete, and accurate, and acknowledge receipt of required documentation.
Additional statements must be included:
- Details on the credit’s origin, total amount, and transferred portion.
- Tax years for the transferor and transferee.
- Attestation of unrelated status.
- Compliance with section 6418 and credit-specific rules (e.g., prevailing wage).
- Acknowledgment of recapture rules under section 6418(g)(3), if applicable.
Attachments and Documentation
Attach supporting documents to validate the credit, such as:
- Evidence of the eligible property’s existence (e.g., permits, utility confirmations).
- Proof of bonus credit qualifications (e.g., prevailing wage certifications).
- Cost or production records.
If using an alternative document instead of Schedule A, label it “Transfer Election Statement” and include all required info.
Relation to Form 3800 and Tax Implications
Schedule A integrates directly with Form 3800:
- Transferors enter negative amounts in Part III, column (f), reducing their credit.
- Transferees enter positive amounts in the same column, treating the credit as their own starting in the tax year ending with or after the transferor’s.
- Check Item B on Form 3800 and indicate the number of Schedules A attached.
- For multiple facilities, use Part V of Form 3800 to detail specifics.
Transferred credits may trigger basis reductions (e.g., for sections 48, 48C, or 48E credits). Unused credits can be carried back or forward, but passive activity limits apply.
Download IRS Form 3800 Schedule A
To access the official form, download the PDF directly from the IRS website: Download Schedule A (Form 3800).
Always consult the latest instructions for Form 3800 at IRS.gov/instructions/i3800 to ensure compliance with any updates.
Tips for SEO and Compliance in Tax Credit Transfers
When dealing with IRS Form 3800 Schedule A, prioritize accuracy to avoid audits or invalidations. For complex transfers involving partnerships or multiple credits, consider consulting a tax professional. Staying updated on IRA 2022 changes can maximize benefits from clean energy incentives.
This article is based on the December 2025 version of the form and instructions, applicable for the 2025 tax year. For the most current information, visit IRS.gov.