IRS issues FAQ on Clean Fuel Production Credit

The Internal Revenue Service now has FAQs related to entities registering for the Clean Fuel Production Credit.

The Inflation Reduction Act of 2022 added the new income tax credit for clean fuel production, which becomes available next Jan. 1. To claim the credit, the taxpayer must be registered as a producer of clean fuel at the time of production. 

The FAQs address which entity must apply for registration, including if the entity producing the clean fuel is a disregarded entity and which entity will be able to claim the credit when the registrant is a disregarded entity.

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.