Treasury, IRS issue FAQs on registration for clean fuel production credit

The Internal Revenue Service issued July 10 frequently asked questions (FAQs) in Fact Sheet 2024-25 related to which entities must apply for registration for the clean fuel production credit.

The Inflation Reduction Act of 2022 added a new income-tax credit for clean-fuel production, available beginning Jan. 1, 2025.

To claim a clean fuel production credit, the taxpayer must be registered as a producer of clean fuel at the time of production.

Notice 2024-49 provides guidance on the registration procedures for the clean fuel production credit, including how to apply for registration and what information a clean-fuel producer must submit with its application.

These FAQs address which entity must apply for registration pursuant to Notice 2024-49, including if the entity producing the clean fuel is a disregarded entity.

In addition, the FAQs address which entity will be able to claim the credit when the registrant is a disregarded entity.

More information about IRA credits and deductions can be found at credits and deductions under the Inflation Reduction Act of 2022.