WASHINGTON, D.C. — The Internal Revenue Service (IRS) has issued new guidance on the Clean Fuel Production Credit, introduced by the Inflation Reduction Act of 2022. This credit, effective from January 1, 2025, aims to incentivize the production of clean fuel.
The IRS’s Fact Sheet 2024-25 provides answers to frequently asked questions about which entities must register to claim this credit. To be eligible, a taxpayer must be registered as a clean fuel producer at the time of production.
Notice 2024-49 outlines the registration process, detailing how to apply and what information is required. This includes specific instructions for entities that are classified as disregarded entities, meaning they are not recognized as separate from their owner for tax purposes.
“These FAQs address which entity must apply for registration pursuant to Notice 2024-49,” the IRS stated, ensuring clarity on who can claim the credit when the registrant is a disregarded entity.
The Clean Fuel Production Credit is part of a broader effort under the Inflation Reduction Act to promote cleaner energy production. For more details on related credits and deductions, taxpayers are encouraged to consult IRS resources.
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