What is Form 8835?
Form 8835 calculates the Section 45 Renewable Electricity Production Credit — a per-kilowatt-hour credit for electricity generated from qualified renewable sources including wind, solar, geothermal, biomass, hydroelectric, and landfill gas.
SupportedKey Sections
| Part | Description |
|---|---|
| Part I | Facility information (type, address, placed-in-service date, prevailing wage status) |
| Part II | Credit computation — kWh produced x applicable credit rate |
Credit Rates (2025)
| Energy Source | Base Rate | With Bonuses |
|---|---|---|
| Wind (onshore) | $0.026/kWh | Up to ~$0.06/kWh |
| Solar | $0.026/kWh | Up to ~$0.06/kWh |
| Geothermal | $0.026/kWh | Up to ~$0.06/kWh |
| Hydroelectric | $0.015/kWh | Up to ~$0.04/kWh |
| Biomass | $0.015/kWh | Up to ~$0.04/kWh |
Bonus credits for prevailing wages, apprenticeship programs, domestic content sourcing, and energy community location.
How PaisaTax Handles It
- Manually added for qualifying electricity producers
- 10-year credit period from placed-in-service date
- Total credit flows to Form 3800 Part III Line 1f (General Business Credit)
Common Situations
- Wind farm operator: Per-turbine production tracked annually for the 10-year credit period.
- Section 6417 election: Taxpayers can elect a direct payment from Treasury (30% of credit) instead of using the credit against tax liability.
- Multiple facilities: Each facility gets its own row in Part II with separate production tracking.