irc 38(c)(5)
(A)Eligible small business
For purposes of this subsection, the term “eligible small business” means, with respect to any taxable year—
(ii)a partnership, or
if the average annual gross receipts of such partnership for the 3-taxable-year period preceding such taxable year does not exceed $50,000,000. For purposes of applying the test under the preceding sentence, rules similar to the rules of paragraphs (2) and (3) of section 448(c) shall apply.
from k-1 13M instructions
The partnership will provide information necessary to determine if it's an eligible small business under section 38(c)(5)(A). If you and the partnership are eligible small businesses, report the credit on line 4i. For more information, see the Instructions for Form 3800.
I would take the position that since it's being reported on the K-1 and if there is no contrary info (why would it report the credit if it failed the gross receipts test), it qualifies.
