Form 3468 Energy Credit Correction
Summary
The IRS issued a correction to the 2025 Instructions for Form 3468 (Investment Tax Credit for Energy Property) affecting pages 20 and 21. The correction adds limited exceptions for qualifying geothermal and solar energy property within the applicable percentage tables for Part VI, Section A (Line 1b) and Section B (Line 3b). Taxpayers who filed before March 27, 2026 may file an amended return to apply the corrected percentages.
What changed
The IRS corrected Form 3468 instructions by adding language specifying that the applicable percentage for geothermal (Line 1b) and solar (Line 3b) energy credits may be determined by meeting either the PWA requirements or a limited exception. For construction beginning before 2025 meeting PWA or limited exception requirements, the credit remains at 30%; without meeting these requirements, it is 6%. For construction from 1/1/25 to 6/15/25 meeting the requirements, the credit drops to 10% (or 2% without); after 6/15/25 the credit is 0% regardless.
Taxpayers who filed returns using the prior instructions before March 27, 2026 should review whether filing an amended return (Form 1040-X) would result in a beneficial change. When preparing future returns, filers must use the corrected tables to determine applicable percentages. The correction does not establish new compliance deadlines beyond the standard amended return filing period.
What to do next
- Review the corrected Line 1b and Line 3b tables if you claimed geothermal or solar energy credits on a return filed before March 27, 2026
- Consider filing Form 1040-X (Amended U.S. Individual Income Tax Return) if the correction would increase your credit amount
- Use the corrected applicable percentage tables when preparing future Form 3468 returns for qualifying energy property
Archived snapshot
Apr 2, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
If you downloaded or printed the 2025 Instructions for Form 3468 prior to March 27, 2026, please note the following correction to pages 20 and 21.
Under Part VI, Section A–Geothermal Energy Credit, line 1b, and Section B–Solar Energy Credit, line 3b, we have added the limited exceptions within the text and the tables for the description of applicable percentage. The corrected instructions are below. If you filed your return before the instructions were revised, you can file an amended return to make a correction to your return.
Line 1b
For qualifying geothermal energy property placed in service during the tax year, the applicable percentage is determined by the beginning of construction date and if either (1) the PWA requirements are met or (2) a limited exception is met. See Part I, lines 7 and 8, Filers Completing Part V or VI, earlier. Use the table below to determine your applicable percentage and enter it on line 1b.
See Increased Credit Amount Statement, earlier, for more information.
| Beginning of construction | Before 2025 | From 1/1/25 to 6/15/25 | After 6/15/25 |
|---|---|---|---|
| Meets PWA requirements or limited exception | 30% | 10% | 0% |
| Does not meet PWA requirements or limited exception | 6% | 2% | 0% |
Line 3b
For qualifying solar energy property (described in Solar energy 1 or 2 above) placed in service during the tax year where construction begins before 2025, the applicable percentage is determined by meeting the PWA requirements or a limited exception. See Part I, lines 7 and 8, Filers Completing Part V or VI, earlier. Use the table below to determine your applicable percentage and enter it on line 3b.
| Beginning of construction | Before 2025 | After 2024 |
|---|---|---|
| Meets PWA requirements or limited exception | 30% | 0% |
| Does not meet PWA requirements or limited exception | 6% | 0% |
For qualifying solar energy property (described in Solar energy 3 above) placed in service during the tax year, the applicable percentage is determined by the beginning of construction date and if either (1) the PWA requirements are met or (2) a limited exception is met. See Part I, lines 7 and 8, Filers Completing Part V or VI, earlier. Use the table below to determine your applicable percentage and enter it on line 3b.
| Beginning of construction | Before 2025 | From 1/1/25 to 6/15/25 | After 6/15/25 |
|---|---|---|---|
| Meets PWA requirements or limited exception | 30% | 10% | 0% |
| Does not meet PWA requirements or limited exception | 6% | 2% | 0% |
Tip: See Increased Credit Amount Statement, earlier, for more information about the required statement.
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