The IRS on Wednesday, July 10, issued a new FAQ in Fact Sheet 2024-25 related to which entities must apply for registration for the clean fuel production credit.
The Inflation Reduction Act added a new income tax credit for clean fuel production, available beginning Jan. 1, 2025. To claim the clean fuel production credit, the taxpayer must have registered as a producer of clean fuel at the time of production.
The new FAQs address which entity must apply for registration, including if the entity producing the clean fuel is a disregarded entity, as well as which entity will be able to claim the credit when the registrant is a disregarded entity. Read more.