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Correction to the 2025 Instructions for Form 3468 of the applicability of the 35% rate on line 1c in Part IV, Advanced Manufacturing Investment Credit Under Section 48D

 

On line 1c of Form 3468, Part IV, the 35% rate is allowed for any tax year beginning in 2025 with respect to qualified investments in an advanced manufacturing facility made during the year, unless the property was placed in service before 2026, in which case a 25% credit rate applies.

If you downloaded or printed the 2025 Instructions for Form 3468 prior to 8/27/2026, please note the following corrections to text regarding Part IV, line 1c. If you filed your return based on the prior instructions using the 25% credit rate for amounts now eligible for a 35% credit rate, you should file an amended return.

We have removed text stating that the 35% rate can only be used on Part IV, line 1c by filers with a fiscal tax year ending in 2026. With the removal of this text, we have revised the instructions as follows.

On page 1, under the heading “Part IV, advanced manufacturing investment credit.”, we have revised the text as follows. “The advanced manufacturing investment credit is equal to 35% of the qualified investment, unless the property was placed in service before 2026, in which case the rate remains 25%. See Part IV, later.”

On page 13, under the heading “Part IV—Advanced Manufacturing Investment Credit Under Section 48D”, we replaced the first paragraph and the “Note:” with the following. “The advanced manufacturing investment credit is equal to 35% of the qualified investment with respect to any advanced manufacturing facility of an eligible taxpayer in the tax year, unless the facility was placed in service before 2026, in which case the credit rate is 25%. See Regulations section 1.48D-1 and P.L. 119-21, section 70308, for more information.

On page 15: 

  • We revised the Line 1b instructions to be: “Enter the basis of the qualified investment with respect to any advanced manufacturing facility (defined above) for the tax year.”
  • We revised the Line 1c instructions to be: “For property placed in service before 2026, multiply line 1b by 25% (0.25). For all other property, multiply line 1b by 35% (0.35).”