Form 8835: The Renewable Electricity Production Credit
Published November 5, 2026
Form 8835 is titled Renewable Electricity Production Credit. The credit goes to the owner of a qualified facility that produces electricity during a 10-year period, and sells that electricity to an unrelated person. The 2025 form and instructions are the current revision. IRS: Form 8835 (2025)
What counts as a qualified facility
The instructions describe qualified facilities by energy source. The list includes wind, solar, geothermal, and some biomass, hydropower, and marine facilities. Each facility must meet its own placed-in-service rules and its own requirements in section 45 of the tax code. Check those rules for your facility before you claim anything. IRS: Instructions for Form 8835 (2025), Qualified facilities
Who files Form 8835
If you own the facility in a trade or business and you claim the credit yourself, you file Form 8835. If your only source of the credit is a partnership, an S corporation, an estate, a trust, or a cooperative, you generally do not file Form 8835. You report your share directly on Form 3800, General Business Credit. IRS: Instructions for Form 8835 (2025), Who must file
Two parts of the form
Part I describes the qualified property or qualified facility. Part II calculates the credit. The credit is for electricity you produce and sell during the period set by the law. You also need to know the date the facility was placed in service. IRS: Instructions for Form 8835 (2025), Purpose of Form
Prevailing wage and apprenticeship rules
If you claim the increased credit by meeting the prevailing wage and apprenticeship requirements, you must complete and attach Form 7220 for the facility. The instructions say this applies to each qualified facility you claim the increased amount for. IRS: Instructions for Form 8835 (2025), Reminders
Investment credit choice
In some cases, you can elect to treat a qualified facility as energy property instead. That choice moves the credit to an investment credit reported on Form 3468, Part VI, instead of a production credit. The instructions explain when the election is allowed. Read them before you choose. IRS: Instructions for Form 8835 (2025), Election To Treat a Qualified Facility as Energy Property
The 10-year period
The credit covers the tax year the facility is first placed in service and each later year in the 10-year period. It applies only to electricity you produce and sell to an unrelated person. The instructions also list older facilities placed in service before 2022 and other rules for them. If your facility is older, check the rule that applies to it. The instructions give the credit amounts and the reference and threshold amounts for each year. Those figures change, so use the instructions for your tax year and not older numbers. IRS: Instructions for Form 8835 (2025), Credit amount
Where the credit goes
The credit flows to Form 3800, General Business Credit. Form 8835 gives the calculation. Form 3800 gives the place where the credit is used against your tax. Keep both forms together with your records. IRS: Instructions for Form 8835 (2025), Form 3800
Records to keep
- The date the facility was placed in service.
- The kilowatt-hours you produced and the kilowatt-hours you sold.
- Sales contracts showing the buyer was an unrelated person.
- Your prevailing wage and apprenticeship records, if you claim the increased amount.
Keep these records for the full time the credit applies, plus the time the IRS can review the return.
Related reading
Read Form 3800 basics to see how general business credits are combined. Read the residential clean energy credit rules for home energy systems, which follow different rules.
General information, not advice for your situation.
Sources: Sources: IRS, Form 8835 (2025), Renewable Electricity Production Credit (https://www.irs.gov/pub/irs-pdf/f8835.pdf); IRS, Instructions for Form 8835 (2025) (https://www.irs.gov/pub/irs-pdf/i8835.pdf) This is general information, not advice about your specific return.
