Common questions on Form 8904, Marginal Well Production Credit in ProConnect

Common questions on Form 8904, Credit for Oil and Gas Production From Marginal Wells:

Table of contents:

Where does the Marginal Well Production Credit flow on my client's return?

ProConnect will carry the credit from Form 8904 to Form 3800, General Business Credits, where the allowable amount of credit for the current year may be limited. If any or all of the credit isn't allowed this year, you can verify on the General Info form that the credit will carryover to next year's return.

Back to Table of Contents

Where do I enter line 1 for qualified natural gas production (thousands of cubic feet)?

1. Go to Input Return ⮕ Credits ⮕ General Business & Vehicle Cr.
2. Select the Energy/Fuel Production tab.
3. Scroll down to the Credit for Oil and Gas Production from Marginal Wells (8904) section.
4. Enter the Qualified natural gas production (thousands of cubic feet) field.

Back to Table of Contents

Where do I enter line 7 credit for oil and gas production from marginal wells from partnerships and S corporations?

1. Go to Input Return ⮕ Credits ⮕ General Business & Vehicle Cr.
2. Select the Energy/Fuel Production tab.
3. Scroll down to the Credit for Oil and Gas Production from Marginal Wells (8904) section.
4. Enter the Credit amount per thousands of cubic feet (defaults to 0.67) [Override] field.

Back to Table of Contents