The qualified interconnection property under section 48 must be included on the basis lines for applicable property on Form 3468, Part VI. Amounts paid or incurred by the taxpayer for qualified interconnection property are not to be entered on Form 3468, Part VI, Section N, line 27.
In the 2024 Instructions for Form 3468, Investment Credit, disregard the following.
- On page 16, Part VI, Caution, disregard the last sentence: “Do not include qualified interconnection property on any of the basis lines in Part VI. Instead report qualified interconnection property in Part VI, Section N, line 27.”
- On page 24, Part VI, Section N, line 27, disregard the line 27 instructions: “Add to the total of line 27 the amounts paid or incurred by the taxpayer for qualified interconnection property in connection with the installation of energy property placed in service during the year. See Interconnection property, earlier, for a description of the qualifying property.”
The amounts paid or incurred by the taxpayer for qualified interconnection property under section 48 must be included on the basis lines for applicable property on Form 3468, Part VI, Section A, line 1a; Section B, line 3a; Section C, line 5f; Section D, line 7a; Section E, line 9a; Section F, line 11d; Section G, line 13a; Section I, line 17a; and Section L, line 23a.
Qualified interconnection property does not apply to Form 3468, Part VI, Section C, line 5a; Sections H, J, K, M; and parts of Section B (electrochromic glass property and fiber optic solar energy property) and Section I (thermal energy storage property and hydrogen energy storage property).
For more information, see section 48(a)(8) and Treasury Decision 10015 including section 1.48-14(h).