Rev. December 2023
Form 8991 instructions for reporting Base Erosion and Anti-Abuse Tax (BEAT) on schedule C, D, and E. It includes instructions for calculating base erosion tax benefits, waiver of deductions, credits reducing regular tax liability, and applicable section 38 credits.
On Form 8991, manufacturing or production activities refer to any process that uses eligible fuels for heating purposes. Examples include the melting or treatment of metals, chemical processes, food and fiber processing, and other similar activities involving energy use. The term encompasses both the actual manufacturing or production of a product and any research and development related to these processes.
The tax year for which this Form 8991 is filed depends on the context and the specific question being asked, but it generally refers to the tax year in which the business activities were conducted or the credits were earned.
The reference amount on Form 8991 is calculated by determining the total energy consumption in a tax year, which includes all qualified fuel used during that period. To compute this, add up the amounts of natural gas, NGLs, coal, or other fuels used for heating processes, and divide the sum by 12 if it's a calendar year or by the number of months it's a fiscal year.
The purpose of Form 8991 is to compute the Business Energy Manufacturing Tax Credit (BEMTC) and the Business Energy Investment Credit (BEIC), which are available to eligible taxpayers engaged in qualified manufacturing or production activities. These credits can help offset a portion of the cost of energy used for eligible processes.
On Form 8991, qualified fuel refers to natural gas, natural gas liquids (NGLs), coal, or any other fuel used in a combustion process that produces heat for use in eligible energy-based manufacturing or production activities. This definition is specific to the Business Energy Manufacturing Tax Credit and the Business Energy Investment Credit.
On Form 8991, energy-based refers to activities that use eligible fuels for heating purposes. This term encompasses a wide range of manufacturing or production processes where heat is generated as part of the production process. It includes activities like metal melting or treatment, chemical processing, food and fiber processing, research and development related to these processes, and more.
Form 8991 is one of Tax forms that are documents used to report information related to taxes to the relevant tax authority. There are various types of tax forms, including federal, state, and local tax forms, which can vary depending on the taxpayer's circumstances and location.
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