IRS Form 8923, officially titled “Mine Rescue Team Training Credit,” is a specialized tax form used by employers in the mining industry to claim a federal tax credit for training their mine rescue team employees1. This credit, designed to encourage safety and preparedness in underground mining operations, allows eligible businesses to recover a portion of the costs associated with training qualified employees to serve as mine rescue team members. The form lets you claim 20% of qualified training program costs, up to $50,000 per eligible employee per year, including wages paid during training. Only full-time employees who meet specific training requirements prescribed by the Mine Safety and Health Administration (MSHA) qualify. Form 8923 is attached to your main tax return and is essential for miners seeking to offset training expenses, promote workplace safety, and remain compliant with federal regulations. The credit expired for tax years after 2020, but you should always check the latest IRS updates to see if it has been extended.
How to File Form 8923
- Attach Form 8923 to your federal tax return (such as Form 1120, 1065, or 1040).
- Complete all lines accurately; incomplete or incorrect forms may delay your credit.
- If you are a partnership or S corporation, report the credit on Schedule K-1 and attach Form 8923.
- All other filers: report the credit on Form 3800, Part III, line 1u, and attach Form 8923.
How to Complete Form 8923
Top Section: Identification
- Name(s) shown on return: Enter the legal name(s) as shown on your main tax return.
- Identifying number: Enter your Employer Identification Number (EIN) or Social Security Number (SSN) as it appears on your tax return.
Line 1: Total Training Program Costs
Line 1: Total training program costs of qualified mine rescue team employees paid or incurred during the tax year (up to $50,000 per qualified employee).
- Add up all eligible training costs for qualified mine rescue team employees during the tax year.
- Include wages paid while attending training, but do not exceed $50,000 per employee.
- Enter the total on Line 1.
Line 2: Calculate the Credit
Line 2: Multiply line 1 by 20% (0.20). See instructions for the adjustment you must make.
- Multiply the amount on Line 1 by 0.20 (20%).
- Enter the result on Line 2.
- If you capitalized any costs included on Line 1, reduce the amount capitalized by the credit calculated here.
Line 3: Credit from Partnerships and S Corporations
Line 3: Mine rescue team training credit from partnerships and S corporations (see instructions).
- If you received a credit from a partnership or S corporation (reported on Schedule K-1, box 15 code P for partnerships, or box 13 code P for S corporations), enter that amount here.
- If not, leave Line 3 blank.
Line 4: Add Credits
Line 4: Add lines 2 and 3. Partnerships and S corporations, report this amount on Schedule K. All others, report this amount on Form 3800, Part III, line 1u.
- Add the amounts from Lines 2 and 3.
- Enter the total on Line 4.
- If you are a partnership or S corporation: Report this amount on Schedule K.
- All other filers: Report this amount on Form 3800, Part III, line 1u.
Frequently Asked Questions
Q: Who is a qualified mine rescue team employee?
A: A full-time miner eligible to serve as a rescue team member for over 6 months, with at least 20 hours of initial or 40 hours of refresher training.
Q: What costs are eligible for the credit?
A: Training program costs, including wages paid during training, up to $50,000 per qualified employee.
Q: Where do I report the credit if I’m not a partnership or S corporation?
A: On Form 3800, Part III, line 1u, after completing Form 8923.
With this step-by-step guide, you’ll be able to complete IRS Form 8923 accurately and maximize your mine rescue team training credit.