Since the business portion is more than 20 percent (27% per your calculations), the prorated amount for the personal portion of the credit is claimed on Form 5695. A renter that paid solar costs can claim the rental portion of the residential energy credit.
- Form 3468 is used to claim investment tax credits for specific types of projects that property owners engage in on their property.
- Some of the credits that can be claimed using Form 3468 include the Qualifying Advanced Coal Project Credit, Qualifying Gasification Project Credit, Qualifying Advanced Energy Project Credit, Rehabilitation Credit, and Energy Credit.
Part III of the form is for claiming either the rehabilitation credit or the investment credit for energy properties:
- The rehabilitation credit is for work to restore, preserve or upgrade an older building or one that qualifies for historic status
- The energy investment credit is available for properties used for alternative energy; solar, wind or geothermal energy; shale oil production; recycling; certain kinds of natural gas production; and other technologies Congress chooses to designate.
A rental property reported on Schedule E generally does not qualify for the Investment Tax Credit. You can get an investment credit for the following projects:
- Rehabilitation of a qualified building
- Energy credit energy project
- Qualifying advanced energy credit
- Qualifying advanced coal project
- Qualifying gasification project
- Qualifying advanced manufacturing credit
- Qualifying clean electricity credit
See - Clean Energy Tax Incentives for Businesses
See U.S. Code § 48 - Energy credit
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