8830

OMB No. 1545-1282

Enhanced Oil Recovery Credit
Form
© Attach to your return.
Department of the Treasury Attachment
Internal Revenue Service Sequence No. 78
Name(s) shown on return Identifying number

Part I Current Year Enhanced Oil Recovery Credit (See instructions.)

1 Qualified enhanced oil recovery costs 1

2 Current year credit. Multiply line 1 by 15% (.15) (see instructions) 2

3 Enhanced oil recovery credits If you are a— Then enter total of current year credit(s) from—
from flow-through entities
a
b
Shareholder
Partner
Schedule K-1 (Form 1120S), lines 12d, 12e, or 13
Schedule K-1 (Form 1065), lines 13c, 13d, or 14 % 3

4 Total current year credit. Add lines 2 and 3 4

Part II Tax Liability Limit (See Who Must File Form 3800 to find out if you complete Part II or file Form 3800.)

%
5a Individuals. Enter amount from Form 1040, line 40
b Corporations. Enter amount from Form 1120, Schedule J, line 3 (or Form 1120-A, Part I, line 1) 5
c Other filers. Enter regular tax before credits from your return
6a Credit for child and dependent care expenses (Form 2441, line 10) 6a
b Credit for the elderly or the disabled (Schedule R (Form 1040), line 21) 6b
c Mortgage interest credit (Form 8396, line 11) 6c
d Foreign tax credit (Form 1116, line 32, or Form 1118, Sch. B, line 12) 6d
e Possessions tax credit (Form 5735) 6e
f Orphan drug credit (Form 6765) 6f
g Credit for fuel from a nonconventional source 6g
h Qualified electric vehicle credit (Form 8834, line 19) 6h
i Add lines 6a through 6h 6i
7 Net regular tax. Subtract line 6i from line 5 7
8 Tentative minimum tax (see instructions):

%
a Individuals. Enter amount from Form 6251, line 26
b Corporations. Enter amount from Form 4626, line 13 8
c Estates and trusts. Enter amount from Form 1041, Schedule I, line 37
9 Net income tax:

%
a Individuals. Add line 7 above and line 28 of Form 6251
b Corporations. Add line 7 above and line 15 of Form 4626 9
c Estates and trusts. Add line 7 above and line 41 of Form 1041, Schedule I
10 If line 7 is more than $25,000, enter 25% (.25) of the excess (see instructions) 10
11 Subtract line 8 or line 10, whichever is greater, from line 9. If zero or less, enter -0- 11
12 Enhanced oil recovery credit allowed for the current year. Enter the smaller of line 4 or line 11.
This is your General Business Credit for 1995. Enter here and on Form 1040, line 44; Form 1120,
Schedule J, line 4d; Form 1120-A, Part I, line 2a; Form 1041, Schedule G, line 2c; or the appropriate
line of other income tax returns 12

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Cat. No. 13059B Form 8830 (1995)

Form 8830 (1995) Page 2

General Instructions exploitation of natural resources (see Line 1.—Enter the total of the qualified
section 638(1)). The first injection of liquids, costs paid or incurred during the year in
Section references are to the Internal gases, or other matter must begin after connection with a qualified enhanced oil
Revenue Code unless otherwise noted. 1990. However, any significant expansion recovery project. See Definitions above.
after 1990 of a project begun before 1991 Line 2.—Enter 15% of line 1 on line 2. This
Purpose of Form is treated as a project where the first is your current year credit.
Use Form 8830 to claim the enhanced oil injection begins after 1990.
You must reduce the otherwise
recovery credit. Partnerships and S Additionally, the operator (or designated allowable deduction(s) for line 1 costs by
corporations use the form to figure the owner) must submit a certification from a the line 2 credit attributable to these costs.
credit to pass through to partners and petroleum engineer that the project meets Also, if any part of the line 1 costs are for
shareholders. The credit is 15% of certain the above requirements. File this expenditures that increase the basis of
costs paid or incurred in connection with certification with the Internal Revenue property, reduce the otherwise allowable
an enhanced oil recovery project. Service Center, Austin, TX 73301, by the basis increase by the line 2 credit
An owner of an operating mineral due date of the operator’s (or designated attributable to these costs.
interest may claim or elect not to claim this owner’s) Federal income tax return. The
credit on either an original or amended petroleum engineer certifying a project Who Must File Form 3800
return at any time within 3 years from the must be duly registered or certified by any
state. If for this year you have more than one of
due date of the return (determined without
the credits included in the general
regard to extensions). The operator (or designated owner) must business credit listed below, or have a
certify each following year that the project carryback or carryforward of any of the
Amount of Credit continues to be implemented substantially credits, or have an enhanced oil recovery
The tentative credit is 15% of qualified in accordance with the petroleum credit from a passive activity, you must
costs for the year. The credit is reduced engineer’s certification. This continued complete Form 3800, General Business
when the reference price, determined certification must be filed with the Internal Credit, instead of completing Part II of
under section 29(d)(2)(C), exceeds $28 per Revenue Service Center, Austin, TX 73301, Form 8830 to figure the tax liability
barrel. The $28 value is adjusted for by the due date for filing the operator’s (or limitation.
inflation for years after 1991. If the designated owner’s) Federal income tax
return. The general business credit consists of
reference price exceeds the base value of the following credits: Investment (Form
$28 (as adjusted by inflation) by more than If the application of a tertiary recovery 3468), Jobs (Form 5884), Alcohol used as
$6, the credit is zero. For 1995, there is no method is terminated, the operator (or fuel (Form 6478), Research (Form 6765),
reduction of the credit. designated owner) must submit a notice of Low-income housing (Form 8586),
project termination to the Internal Revenue Enhanced oil recovery (Form 8830),
Definitions Service Center, Austin, TX 73301, by the Disabled access (Form 8826), Renewable
Qualified enhanced oil recovery costs due date of the operator’s (or designated electricity production (Form 8835), Indian
means: owner’s) Federal income tax return for the employment (Form 8845), Employer social
tax year in which the project terminates. security and Medicare taxes paid on
1. Any amount paid or incurred during See Regulations section 1.43-3 for the
the tax year for tangible property— certain employee tips (Form 8846),
information that the notice and the above Contributions to selected community
a. That is an integral part of a qualified certifications must include. development corporations (Form 8847),
enhanced oil recovery project, and
Tertiary recovery methods qualifying and Trans-Alaska pipeline liability fund.
b. For which depreciation (or for the credit include: The empowerment zone employment
amortization instead of depreciation) is
● Miscible fluid displacement, credit (Form 8844), while a component of
allowable.
● Steam drive injection,
the general business credit, is figured
2. Any intangible drilling and separately on Form 8844 and is never
development costs— ● Microemulsion flooding, carried to Form 3800.
a. That are paid or incurred in ● In situ combustion,
connection with a qualified enhanced oil ● Polymer-augmented water flooding, Part II
recovery project, and ● Cyclic-steam injection, Line 8.—Enter the tentative minimum tax
b. For which the taxpayer may make an (TMT) that was figured on the appropriate
● Alkaline (or caustic) flooding,
election under section 263(c). For an alternative minimum tax (AMT) form or
integrated oil company, this includes ● Carbonated water flooding, schedule. Although you may not owe AMT,
intangible drilling costs required to be ● Immiscible nonhydrocarbon gas you must still compute the TMT to figure
amortized under section 291(b). displacement, or your credit.
3. Any qualified tertiary injectant ● Any other method approved by the Line 10.—See section 38(c)(3) for special
expenses paid or incurred in connection Secretary of the Treasury. rules for married couples filing separate
with a qualified enhanced oil recovery returns, for controlled corporate groups,
project, and for which a deduction under Specific Instructions and for estates and trusts.
section 193 is allowable. Line 12.—Enter the general business credit
Qualified enhanced oil recovery
Part I on the appropriate line of your income tax
project means any project involving the Figure any enhanced oil recovery credit return.
application of one or more tertiary recovery from your own trade or business on lines 1 Note: If you cannot use all of your credit
methods defined in section 193(b)(3) (and and 2. Skip lines 1 and 2 if you are because of the tax liability limitations (line
listed below) that can reasonably be claiming only a credit that was allocated to 12 is smaller than line 4), carry any excess
expected to result in more than an you from an S corporation or a partnership. back 3 years and then forward to each of
insignificant increase in the amount of the 15 years after the year of the credit.
crude oil that will ultimately be recovered. S Corporations and Partnerships See the separate Instructions for Form
The project must be located within the Figure the total credit on lines 1 through 4. 3800 for details.
United States, which includes the seabed Then allocate the line 4 credit among the
and subsoil adjacent to the territorial shareholders or partners in the same way
waters of the United States and over which that income and loss are shared.
the United States has exclusive rights by
international law for exploration and
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