Form 4225 Certain Credit Recapture, Excessive Payments, and Penalt

Note: The draft you are looking for begins on the next page.

Caution: DRAFT—NOT FOR FILING

This is an early release draft of an IRS tax form, instructions, or publication,
which the IRS is providing for your information. Do not file draft forms and do
not rely on draft forms, instructions, and pubs for filing. We incorporate all
significant changes to forms posted with this coversheet. However, unexpected
issues occasionally arise, or legislation is passed—in this case, we will post a
new draft of the form to alert users that changes were made to the previously
posted draft. Thus, there are never any changes to the last posted draft of a
form and the final revision of the form. Forms and instructions are subject to
OMB approval before they can be officially released, so we post drafts of them
until they are approved. Drafts of instructions and pubs usually have some
additional changes before their final release. Early release drafts are at
IRS.gov/DraftForms and remain there after the final release is posted at
IRS.gov/LatestForms. Also see IRS.gov/Forms.
Most forms and publications have a page on IRS.gov: IRS.gov/Form1040 for
Form 1040; IRS.gov/Pub501 for Pub. 501; IRS.gov/W4 for Form W-4; and
IRS.gov/ScheduleA for Schedule A (Form 1040), for example, and similarly for
other forms, pubs, and schedules for Form 1040. When typing in a link, type it
into the address bar of your browser, not a Search box on IRS.gov.
If you wish, you can submit comments to the IRS about draft or final forms,
instructions, or pubs at IRS.gov/FormsComments. Include “NTF” followed by the
form or pub number (for example, “NTF1040”, “NTFW4”, “NTF501”, etc.) in the
body of the message to route your message properly. We cannot respond to all
comments due to the high volume we receive and may not be able to consider
many suggestions until the subsequent revision of the product, but we will
review each “NTF” message. If you have comments on reducing paperwork and
respondent (filer) burden, with respect to draft or final forms, please respond to
the relevant information collection through the Federal Register process; for
more info, click here.

4255

TREASURY/IRS
AND OMB USE
ONLY DRAFT
September 17, 2024
DO NOT FILE

Form
(Rev. December 2024)
Department of the Treasury
Internal Revenue Service

Certain Credit Recapture, Excessive Payments, and Penalties
Attach to your tax return.
Go to www.irs.gov/Form4255 for instructions and the latest information.

172

Summary. Complete the rest of Form 4255 as applicable before completing this part. See instructions.

Recapture

Amounts from prior year(s) returns

Prior
year(s)
credit
from:

Attachment
Sequence No.

Identifying number

Name(s) as shown on return

Part I

OMB No. 1545-0166

(a)
Credit claimed
in prior year(s)
(as adjusted,
if applicable)

(b)
Gross elective
payment
election (EPE)
amount
portion of
column (a)

(c)
Gross EPE
amount in
column (b)
applied against
regular tax
(section 38(c)
limit)

(d)
Net EPE
amount.
Subtract
column (c)
from
column (b)

(e)
Non-EPE credit
(excess of
column (a)
over column (b))
that was
applied against
regular tax

(f)
Carryover.
Subtract
the sum of
columns (b)
and (e) from
column (a)

(g)
Recapture
percentage.
Enter “N/A” if
more than one
recapture event
on one line

(h)
Amount of
column (a)
recaptured,
including
reduction of
carryover.
See instructions
for basis
increase

(i)
Portion of
column (h)
reducing credit
carryover in
column (f)

(j)
Portion of
column (h)
recapturing
non-EPE credit
applied against
regular tax in
column (e)

1a Form 7207
b Form 3468,
Part III
c Form 7210
d Form 3468,
Part IV
e Form 7218*
f Form 7213,
Part II*
g Form 3468,
Part V*
h Form 8936,
Part V
i Form 7211*
j Form 3468,
Part VI
k Form 8835
z Other line 1
tax
2a Form 8933
b Form 8911,
Part I
z Other line 2
tax
3 Total each
column
* Only applicable for Forms 4255 filed for tax years beginning after January 1, 2025.
For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 41488C

Form 4255 (Rev. 12-2024)

TREASURY/IRS
AND OMB USE
ONLY DRAFT
September 17, 2024
DO NOT FILE

Form 4255 (Rev. 12-2024)

Part I

Recapture

Prior
year(s)
credit
from:

Page 2

Summary. Complete the rest of Form 4255 as applicable before completing this part. See instructions. (continued)
(k)
Portion of
column (h)
recapturing EPE
applied against
regular tax
from
column (c)

(l)
Portion of
column (h)
recapturing
net EPE credit
from
column (d)

Totals by Type

Excessive Payments (EPs) and Penalties

(m)
Section
6418(g)(2)
excessive credit
transfer or
6418(g)(3)
recapture

(n)
If you owe
an EP related
to a Gross EPE
in column (b),
enter the net
EPE portion

(o)
If you owe
an EP, enter
the portion of
the EP not in
column (n),
plus any 20%
EP you owe

(p)
Prevailing Wage
and/or
Apprenticeship
penalty
amounts

(q)
Tax that can
be reduced by
nonrefundable
credits

(r)
Tax that cannot
be reduced by
nonrefundable
credits

(s)
Net EPE repaid.
Add columns (l)
and (n)

(t)
Enter any
20% EP in
column (o) plus
any amounts
from column (p)
related to a
column (b)
Gross EPE

1a Form 7207
b Form 3468,
Part III
c Form 7210
d Form 3468,
Part IV
e Form 7218*
f Form 7213,
Part II*
g Form 3468,
Part V*
h Form 8936,
Part V
i Form 7211*
j Form 3468,
Part VI
k Form 8835
z Other line 1
tax
2a Form 8933
b Form 8911,
Part I
z Other line 2
tax
3 Total each
column
* Only applicable for Forms 4255 filed for tax years beginning after January 1, 2025.

Form 4255 (Rev. 12-2024)

TREASURY/IRS
AND OMB USE
ONLY DRAFT
September 17, 2024
DO NOT FILE

Page 3

Form 4255 (Rev. 12-2024)

Part II
Recapture Calculation
Section A—Properties

Enter the type of property and general business credit for which you are completing Sections B, C, and D. If recapturing the investment credit, also state the specific credit
(rehabilitation, energy (if energy property, also show type)), qualified advanced coal project, qualified gasification project, qualified advanced energy project, advanced
manufacturing investment property, qualified clean electricity facility, or rehabilitation property (if rehabilitation property, also show type of building).
A
B
C
D

Section B—Original Credit

These columns relate to the properties A through D described above.

Properties

A

1
2
3
4
5
6

Original rate of credit
. . . . . . . . . . . . . . . . . . . . . .
Credit base as of the end of the previous tax year (see instructions) . . . . . . .
Net change in nonqualified nonrecourse financing during the tax year. If a net decrease,
as a negative number . . . . . . . . . . . . . . . . . . . . . .
Credit base as of the end of the current tax year. Subtract line 3 from line 2
. . . .
Refigured credit (see instructions) . . . . . . . . . . . . . . . . . .
Credit taken for this property on Form 3800 in prior years (see instructions) . . . . .

. .
. .
enter
. .
. .
. .
. .

B

C

D

1
2

3
4
5
6

Section C—Recapture From Increase in Nonqualified Nonrecourse Financing (see instructions)
7
8
9

Credit subject to recapture due to a net increase in nonqualified nonrecourse financing.
Subtract line 5 from line 6. If zero or less, enter -0- . . . . . . . . . . . . . . .
Unused general business credits that would have been allowed if original credit had been
figured with current-year credit base (see instructions)
. . . . . . . . . . . . .
Subtract line 8 from line 7. This is the recapture tax as a result of a net increase in nonqualified
nonrecourse financing . . . . . . . . . . . . . . . . . . . . . . . .

7

8
9

Section D—Recapture From Disposition of Property or Cessation of Use as Qualified Credit Property (see instructions)
10
11
12
13
14
15
16
17

Date property was placed in service
. . . . . . . . . . . . . . . . . . .
Date property ceased to be qualified credit property . . . . . . . . . . . . . .
Number of full years between the date on line 10 and the date on line 11 . . . . . . .
Unused general business credits that would have been allowed had there been no credit from
this property (see instructions) . . . . . . . . . . . . . . . . . . . . .
Subtract line 13 from line 6
. . . . . . . . . . . . . . . . . . . . . .
Recapture percentage (see instructions) . . . . . . . . . . . . . . . . . .
Multiply line 14 by the percentage on line 15. Enter amount on the applicable line(s) in Part I,
column (h). See instructions . . . . . . . . . . . . . . . . . . . . . .
IRS-issued registration number, if applicable (see instructions) . . . . . . . . . . .

10
11
12
13
14
15
16
17
Form 4255 (Rev. 12-2024)