Part IV

Notice of Proposed Rulemaking

Section 45Z Clean Fuel Production Credit

REG-121244-23

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking and public hearing.

SUMMARY : This document contains proposed regulations regarding the clean fuel production credit enacted by the Inflation Reduction Act of 2022 and amended by the One, Big, Beautiful Bill Act (OBBBA). These proposed regulations would provide rules for determining clean fuel production credits, including credit eligibility rules, emissions rates, and certification and registration requirements. In addition, the proposed regulations would amend three sets of final regulations: the elective payment election regulations and the credit transfer election regulations, to clarify language relating to ownership of clean fuel production facilities, and the Federal excise tax registration regulations, to make them clearer and more consistent with the clean fuel production credit registration requirements in these proposed regulations. The proposed regulations would affect domestic producers of clean transportation fuel, taxpayers that may claim a credit for a related producer’s fuel, and excise tax registrants.

DATES: Written or electronic comments must be received by April 6, 2026. The public hearing is being held on May 28, 2026, at 10 a.m. Eastern Time (ET). Requests to speak and outlines of topics to be discussed at the public hearing must be received by April 6, 2026. If no outlines are received by April 6, 2026, the public hearing will be cancelled. Requests to attend the public hearing must be received by 5 p.m. ET on May 26, 2026.

ADDRESSES: Commenters are strongly encouraged to submit public comments electronically via the Federal eRulemaking Portal at https://www.regulations.gov (indicate IRS and REG-121244-23) by following the online instructions for submitting comments. Requests for a public hearing must be submitted as prescribed in the “Comments and Requests for a Public Hearing” section. Once submitted to the Federal eRulemaking Portal, comments cannot be edited or withdrawn. The Department of the Treasury (Treasury Department) and the IRS will publish for public availability any comments submitted to the IRS’s public docket. Send paper submissions to: CC:PA:01:PR (REG121244-23), Room 5503, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. A plain language summary of the proposed regulations will be made available at https:// www.regulations.gov .

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Jennifer Golden or Danielle Mayfield of the Office of Associate Chief Counsel (Energy, Credits, and Excise Tax) at (202) 317-6855 (not a toll-free number); concerning submissions of comments or the public hearing, Publications and Regulations Section at (202) 317-6901 (not a toll-free number) or by email at publi- chearings@irs.gov (preferred).

SUPPLEMENTARY INFORMATION:

Authority

This document contains proposed amendments to the Income Tax Regulations (26 CFR part 1) regarding sections 45Z, 1361, 4101, 6417, and 6418 of the Internal Revenue Code (Code) as they relate to the clean fuel production credit determined under section 45Z (proposed regulations). This document also contains proposed amendments to the Manufacturers and Retailers Excise Tax Regulations (26 CFR part 48) regarding section 4101 as they relate to excise tax registration. The proposed regulations would be issued under the authority granted by sections

45Z, 1361(b)(3)(A), 4101(a)(1) and (c), 4222(c), 6001, 6417(h), 6418(h), and 7805(a) of the Code. Section 45Z contains several delegations of authority to the Secretary of the Treasury or the Secretary’s delegate (Secretary). Section 45Z(e) directs the Secretary to issue guidance no later than January 1, 2025, regarding implementation of section 45Z, including calculation of emissions factors of transportation fuel, the emissions rate table described in section 45Z(b)(1)(B)(i), and the determination of clean fuel production credits under section 45Z. Section 45Z(f)(2) further authorizes the Secretary to issue regulations regarding the fuel production attributable to the taxpayer in the case of a facility with multiple owners, and section 45Z(f)(1)(A)(i)(II) authorizes the Secretary to issue guidance on certification and other information with respect to certain transportation fuels.

Section 45Z(f)(3) authorizes the Secretary to prescribe additional related person rules for other entities similar to the rule described for corporations that are members of an affiliated group of corporations filing a consolidated return. This includes the authority to prescribe rules for related persons with respect to which the taxpayer has reason to believe will sell fuel to an unrelated person in a manner described in section 45Z(a)(4).

Section 45Z(d)(5)(C) directs the Secretary to issue regulations or other guidance as the Secretary determines necessary to carry out the purposes of section 45Z(d) (5)(A)(iv), which excludes from the definition of “transportation fuel” any fuel produced from a fuel for which a credit under section 45Z is allowable.

Section 45Z(b)(1)(B)(ii) authorizes the Secretary to determine, in the case of any transportation fuel that is not a sustainable aviation fuel (SAF), whether a model is a successor model to the Greenhouse gases, Regulated Emissions, and Energy use in Transportation model developed by the Argonne National Laboratory (ANL). Additionally, section 45Z(b)(1)(B)(i) directs the Secretary, subject to section 45Z(b)(1)(B)(ii) through (v), to annually publish a table

Bulletin No. 2026–9 579 February 23, 2026

setting forth the emissions rate for similar types and categories of transportation fuels based on the amount of lifecycle greenhouse gas (GHG) emissions as described in section 211(o)(1)(H) of the Clean Air Act (CAA) (42 U.S.C. 7545(o) (1)(H)), as in effect on August 16, 2022 (CAA-2022) for such fuels, expressed as kilograms of equivalent carbon dioxide (CO2e) per 1,000,000 British thermal units (mmBTU), which a taxpayer must use for purposes of section 45Z. The proposed regulations cite to the CAA-2022 as enacted by section 1501(a)(2) of the Energy Policy Act of 2005, Public Law 109-58, 119 Stat. 594, 1067 (2005), amended by section 202(a)(1) of the Energy Independence and Security Act of 2007, Public Law 110-140, 121 Stat. 1492, 1521-22 (2007). Section 45Z(b)(1)(B)(iv) authorizes the Secretary to determine the regulations or methodologies for emissions rate adjustments to exclude any emissions attributed to indirect land use change.

Section 45Z(b)(1)(B)(v)(I) requires the Secretary to provide a distinct emissions rate with respect to any transportation fuel derived from animal manure. The emissions rate must be based on the specific animal manure feedstock, which may include dairy manure, swine manure, poultry manure, and any other sources that the Secretary determines to be appropriate.

Section 45Z(b)(1)(B)(v)(II) authorizes the Secretary to provide an emissions rate less than zero with respect to any transportation fuel derived from animal manure.

Section 1361(b)(3)(A) authorizes the Secretary to prescribe regulations providing exceptions to the subparagraph’s treatment of a qualified subchapter S subsidiary (as defined in section 1361(b)(3)(B)) for purposes of the Code.

Section 4101(a)(1) authorizes the Secretary to prescribe regulations related to any registration required under section 4101, including the time, form, manner, and terms and conditions of such registration.

Section 4101(c) provides that rules similar to the rules of section 4222(c) apply to registration under section 4101. Section 4222(c) authorizes the Secretary to prescribe regulations related to the denial, revocation, or suspension of any

registration under section 4222 if the Secretary determines that a registrant has used such registration to avoid the payment of tax or to postpone or interfere with the collection of tax, or that such denial, revocation, or suspension is needed to protect the revenue.

Section 6001 authorizes the Secretary to prescribe regulations related to recordkeeping, statements, and special returns.

Section 6417(h) directs the Secretary to issue such regulations or other guidance as may be necessary to carry out the purposes of section 6417.

Section 6418(h) directs the Secretary to issue such regulations or other guidance as may be necessary to carry out the purposes of section 6418.

These regulations would also be issued under the express delegation of authority under section 7805(a) of the Code, which authorizes the Secretary to prescribe all needful rules and regulations for the enforcement of the Code, including all rules and regulations as may be necessary by reason of any alteration of law in relation to Internal Revenue.

Background

I. Overview

Section 45Z, added to the Code by section 13704 of Public Law 117-169, 136 Stat. 1818, 1997 (August 16, 2022), commonly known as the Inflation Reduction Act (IRA), and amended by section 70521 of Public Law 119-21, 139 Stat. 72, 276 (July 4, 2025), commonly known as the OBBBA, provides an income tax credit (section 45Z credit) for clean transportation fuel produced domestically after December 31, 2024, and sold by December 31, 2029. See section 13704(c) of the IRA; section 70521(d) of the OBBBA; section 45Z(g). The section 45Z credit is a general business credit under section 38 of the Code.

The section 45Z credit replaces an assortment of prior fuel incentives. Those incentives consisted of income tax credit, excise tax credit, and excise tax payment provisions for various biofuels and other alternative fuels sold for use as a fuel or used as a fuel, including biodiesel, renewable diesel, compressed natural gas, second generation biofuel, and SAF. See sec

tions 40(b)(6); 40A(b)(1) and (2); 40B; 6426(c) through (e) and (k); and 6427(e). Section 4101 authorizes the Secretary to require registration with respect to the section 4041 and section 4081 fuel excise taxes, and requires registration with respect to certain fuel tax credits, including the section 45Z credit. Section 4101(a) (1), as amended by section 70521(i) of the OBBBA, and section 45Z(f)(1)(A)(i)(I) impose a registration requirement under section 4101 (section 4101 registration) on a taxpayer claiming the section 45Z credit.

Section 6417, added to the Code by section 13801(a) of the IRA, and amended by sections 70512(j)(2) and 70522(c) of the OBBBA, allows an applicable entity to elect to treat applicable credits (as defined in section 6417(b)), including the section 45Z credit, as a payment against the tax imposed by subtitle A of the Code.

Section 6418, added to the Code by section 13801(b) of the IRA, and amended by sections 70512(h), 70513(b)(3)(B)(ii), and 70521(j)(2) of the OBBBA, allows an eligible taxpayer to elect to transfer eligible credits (as defined in section 6418(f) (1)), including the section 45Z credit.

A taxpayer making a section 6417 or section 6418 election must also complete pre-filing registration, as provided in regulations under those provisions. This pre-filing registration is distinct from the registration required for the section 45Z credit, which is done under section 4101.

II. The Section 45Z Credit

A. Credit Eligibility

Under section 45Z(a)(1)(A), if a taxpayer qualifies for a section 45Z credit, the taxpayer is eligible to claim a section 45Z credit for the taxable year in which the taxpayer sells a transportation fuel. To qualify for a section 45Z credit, a taxpayer must: (i) produce a transportation fuel that meets the requirements for suitability, emissions rate, coprocessing, and prevention of double crediting; (ii) produce the fuel at a qualified facility in the United States, including in any U.S. territories; (iii) be registered as a producer of clean fuel under section 4101 at the time of production; and (iv) sell the fuel to an unrelated person in a qualified sale during

February 23, 2026 580 Bulletin No. 2026–9

unrelated person. Section 45Z(f)(3) also authorizes the Secretary to prescribe similar sale attribution rules for other related entities, including rules for related persons with respect to which the taxpayer has reason to believe will sell fuel to an unrelated person in a manner described in section 45Z(a)(4).

Section 45Z(f)(1)(A)(i)(II) requires a taxpayer producing a SAF transportation fuel to provide certification (in such form and manner as the Secretary prescribes) from an unrelated person demonstrating compliance with: (i) any general requirements, supply chain traceability requirements, and information transmission requirements established under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA); or (ii) for any methodology similar to CORSIA that satisfies the criteria under section 211(o)(1)(H) of the CAA-2022, requirements similar to the requirements described for CORSIA. A taxpayer producing a SAF transportation fuel must also provide such other information as the Secretary may require for purposes of carrying out section 45Z.

B. Credit Amount

Under section 45Z(a)(1), a taxpayer calculates the amount of the section 45Z credit by multiplying the applicable amount per gallon or gallon equivalent with respect to a transportation fuel produced by the taxpayer and sold in a qualified sale by the emissions factor for such fuel. Per section 45Z(a)(5), if the credit amount is not a multiple of one cent, then it is rounded to the nearest cent. A taxpayer’s total section 45Z credit for a taxable year is the sum of the section 45Z credit for each transportation fuel sold during the taxable year.

1. Applicable Amount

For fuel produced after December 31, 2025, the applicable amount for any transportation fuel is either $0.20 or $1.00. See section 45Z(a)(2); section 70521(g)(2) of the OBBBA.

the taxable year. See section 45Z(a)(1) and (4), (d)(4), (d)(5)(A), and (f)(1). Transportation fuel produced after December 31, 2025, must be exclusively derived from a feedstock that was produced or grown in the United States, Mexico, or Canada. See section 45Z(f)(1)(A)(iii); section 70521(a) (2) of the OBBBA.

A taxpayer also cannot be: (i) a specified foreign entity, for taxable years beginning after July 4, 2025; or (ii) a foreign-influenced entity (other than a foreign-influenced entity described in section 7701(a)(51)(D)(i)(II) of the Code), for taxable years beginning after July 4, 2027. See sections 45Z(f)(8) and 7701(a)(51).

Section 45Z(d)(4) defines “qualified facility” as a facility used for the production of transportation fuels. However, the term “qualified facility” excludes any facility for which one of the following credits is allowed under section 38 for the taxable year: (i) the credit for production of clean hydrogen under section 45V of the Code (section 45V credit); (ii) the credit determined under section 46 of the Code to the extent that such credit is attributable to the energy credit determined under section 48 of the Code with respect to any specified clean hydrogen production facility for which an election is made under section 48(a)(15) (section 48(a)(15) election); and (iii) the credit for carbon oxide sequestration under section 45Q of the Code (section 45Q credit). Because these credits cannot be stacked with the section 45Z credit, this preamble refers to the section 45V credit, the section 48(a)(15) election, and the section 45Q credit collectively as the “anti-stacking credits” and individually as an “anti-stacking credit.”

Section 45Z(d)(5)(A) defines “transportation fuel” as a fuel that meets four requirements. First, the fuel must be suitable for use as a fuel in a highway vehicle or aircraft. Second, the fuel must have a lifecycle GHG emissions rate (emissions rate) of not greater than 50 kilograms (kg) of CO2e per mmBTU. Section 45Z(d)(1) defines “mmBTU” to mean 1,000,000 British thermal units; section 45Z(d)(2) defines “CO2e” to mean, with respect to any GHG, the equivalent carbon dioxide

(as determined based on relative global warming potential). Third, the fuel must not be derived from coprocessing an applicable material (or materials derived from an applicable material) with a feedstock that is not biomass. Section 45Z(d)(5)(B) (i) defines “applicable material” to mean monoglycerides, diglycerides, and triglycerides; free fatty acids; and fatty acid esters. Section 45Z(d)(5)(B)(ii) defines “biomass” to have the same meaning as in section 45K(c)(3) of the Code, which provides that biomass means any organic material other than oil and natural gas (or any product thereof), and coal (including lignite) or any product thereof. Fourth, the fuel must not be produced from a fuel for which a section 45Z credit is allowable.

In the case of a taxpayer producing a transportation fuel that is SAF, section 45Z(f)(1)(A)(i)(II) requires the taxpayer to provide certification from an unrelated person. ¹ For this purpose, section 45Z(a)(3) defines “sustainable aviation fuel,” which these proposed regulations refer to as a “SAF transportation fuel,” to mean the non-kerosene portion of liquid fuel that is a transportation fuel, is sold for use in an aircraft, is not derived from palm fatty acid distillates or petroleum, and meets the requirements of either: (i) ASTM International Standard D7566 or (ii) the Fischer Tropsch (FT) provisions of ASTM International Standard D1655, Annex A1.

Section 45Z(a)(4) requires a taxpayer to sell transportation fuel to an unrelated person: (i) for use by such person in the production of a fuel mixture; (ii) for use by such person in a trade or business; or (iii) who sells such fuel at retail to another person and places such fuel in the fuel tank of such other person. Section 45Z(f)(3) provides that persons are treated as related to each other if they would be treated as a single employer under the regulations prescribed under section 52(b) of the Code. ² Section 45Z(f)(3) further provides that if a corporation is a member of an affiliated group of corporations filing a consolidated return, such corporation is treated as selling fuel to an unrelated person if another member of the group sells the fuel to an

1 Both the preamble to the proposed regulations and the proposed regulations use the term “unrelated person” when describing the certification required by section 45Z(f)(1)(A)(i)(II). Section 45Z(f)(1)(A)(i)(II) refers to an “unrelated party,” which is synonymous with an unrelated person as used in section 45Z(a)(4) and (f)(3).

2 In determining eligibility for the section 45Z credit, a taxpayer must apply the controlled group rules under section 52 consistent with the statutory purpose of section 45Z.

Bulletin No. 2026–9 581 February 23, 2026

For fuel produced on or before December 31, 2025, the applicable amount varies depending on whether the transportation fuel is a SAF transportation fuel or is not a SAF transportation fuel (non-SAF transportation fuel) and is higher for SAF transportation fuel than for non-SAF transportation fuel. For non-SAF transportation fuel, the applicable amount is either $0.20 or $1.00. Section 45Z(a)(2). For SAF transportation fuel, the applicable amount is either $0.35 or $1.75. Section 45Z(a)(3) (repealed for fuel produced after December 31, 2025, by section 70521(g)(2) of the OBBBA).

The increased applicable amount is available if the taxpayer produces the transportation fuel at a qualified facility that satisfies the prevailing wage and apprenticeship (PWA) requirements.

Section 45Z(c)(1) provides that for calendar years beginning after 2024, the applicable amount must be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the sale of the transportation fuel occurs. Section 45Z(c)(2) provides that the inflation adjustment factor for the section 45Z credit is the inflation adjustment factor determined and published by the Secretary pursuant to section 45Y(c), determined by substituting “calendar year 2022” for “calendar year 1992” in section 45Y(c)(3). The inflation adjustment factor for purposes of section 45Z means, with respect to a calendar year, a fraction the numerator of which is the gross domestic product (GDP) implicit price deflator for the preceding calendar year and the denominator of which is the GDP implicit price deflator for the calendar year 2022. In this context, the term “GDP implicit price deflator” means the most recent revision of the implicit price deflator for the GDP as computed and published by the Department of Commerce before March 15 of the calendar year.

If any inflation-adjusted applicable amount is not a multiple of one cent, it must be rounded to the nearest multiple of one cent. Section 45Z(c)(1).

Section 45Z(f)(6)(A) provides that rules similar to the prevailing wage requirements of section 45(b)(7) apply. Section 45Z(f)(6)(B) provides a special rule for qualified facilities placed in ser

vice before January 1, 2025, under which such a facility need only satisfy prevailing wage requirements for any alteration or repair in taxable years beginning after December 31, 2024. Section 45Z(f)(7) provides that rules similar to the apprenticeship requirements of section 45(b)(8) apply. Section 1.45Z-3 provides additional rules on the PWA requirements under section 45Z.

2. Emissions Factor and Emissions Rate

Under section 45Z(b)(1)(A), a transportation fuel’s emissions factor measures the reduction in a fuel’s emissions rate, expressed as kg of CO2e per mmBTU, relative to the statutory baseline emissions rate of 50 kg of CO2e per mmBTU, expressed as a fraction of the statutory baseline. Expressed mathematically, the emissions factor calculation is as follows:

(50 kg CO2e per mmBTU - emissions rate) ÷ 50 kg CO2e per mmBTU

Under section 45Z(b)(2), any emissions factor determined under section 45Z(b)(1) (A) that is not a multiple of 0.1 must be rounded to the nearest multiple of 0.1.

A taxpayer determines a fuel’s emissions rate by either using the annual emissions rate table published by the Secretary or obtaining a provisional emissions rate (PER) determination from the Secretary. See section 45Z(b) (1)(B) and (D). The emissions rate may not be less than zero for any transportation fuel produced after December 31, 2025, except for fuel derived from animal manure. See section 45Z(b)(1)(B)(v) and (b)(1)(E); section 70521(b) and (c) (1) of the OBBBA.

Section 45Z(b)(1)(B)(i) directs the Secretary, subject to section 45Z(b)(1) (B)(ii) through (v), to annually publish a table setting forth the emissions rates for similar types and categories of transportation fuels based on the amount of lifecycle GHG emissions as described in section 211(o)(1)(H) of the CAA-2022 for such fuels, expressed as kg of CO2e per mmBTU. Section 211(o)(1)(H) of the CAA-2022 defines lifecycle GHG emissions as “the aggregate quantity of greenhouse gas emissions (including direct emissions and significant indirect

emissions such as significant emissions from land use changes), as determined by the Administrator [of the Environmental Protection Agency (EPA)], related to the full fuel lifecycle, including all stages of fuel and feedstock production and distribution, from feedstock generation or extraction through the distribution and delivery and use of the finished fuel to the ultimate consumer, where the mass values for all greenhouse gases are adjusted to account for their relative global warming potential.” See also 42 U.S.C. 7602(a). Section 45Z(d)(3) provides that “greenhouse gas” has the same meaning as under section 211(o)(1)(G) of the CAA-2022.

Section 45Z divides transportation fuel into two categories for purposes of emissions rates: non-SAF transportation fuel and SAF transportation fuel. Section 45Z(b)(1)(B)(ii) and (iii) provides the methods for determining emissions rates in each case.

Section 45Z(b)(1)(B)(ii) provides that for non-SAF transportation fuel, the lifecycle GHG emissions of such fuel must be based on the most recent determinations under the Greenhouse gases, Regulated Emissions, and Energy use in Transportation model developed by the ANL, or a successor model as determined by the Secretary.

Section 45Z(b)(1)(B)(iii) provides that for SAF transportation fuel, the lifecycle GHG emissions of such fuel is determined in accordance with: (i) the most recent CORSIA methodologies that have been adopted by the International Civil Aviation Organization (ICAO) with the agreement of the United States; or (ii) any methodology similar to the most recent CORSIA methodologies that satisfies the criteria under section 211(o)(1)(H) of the CAA-2022.

Section 45Z(b)(1)(B)(iv) provides that for transportation fuel produced after December 31, 2025, notwithstanding section 45Z(b)(1)(B)(i) through (iii), the emissions rate must be adjusted to exclude any emissions attributed to indirect land use change. See section 70521(c) of the OBBBA.

Section 45Z(b)(1)(B)(v) provides that for any transportation fuel derived from animal manure and produced after December 31, 2025, a distinct emissions

February 23, 2026 582 Bulletin No. 2026–9

rate must be provided with respect to such fuel based on the specific animal manure feedstock. Such an emissions rate may be less than zero. See section 70521(c) of the OBBBA.

In the case of any transportation fuel for which an emissions rate has not been established in the annual emissions rate table under section 45Z(b)(1)(B), a taxpayer producing such fuel may file a petition with the Secretary for determination of the PER with respect to such fuel. See section 45Z(b)(1)(D).

C. Other Rules

Section 45Z(f)(2) provides that, if a facility has more than one owner, production from the facility will be allocated among the owners in proportion to their respective ownership interests in the gross sales from such facility, except to the extent provided in regulations prescribed by the Secretary.

Section 45Z(f)(4) provides that under regulations prescribed by the Secretary, rules similar to the rules of section 52(d) will apply to a pass-thru in the case of estates and trusts.

Section 45Z(f)(5) provides that rules similar to the rules of section 45Y(g)(6) will apply for the allocation of the credit to patrons of an agricultural cooperative.

III. Section 4101 Registration

Section 4101 of the Code generally provides rules for taxpayer registration. Section 4101(a)(1) provides a specific delegation of authority to the Secretary to prescribe the form and manner of registration by requiring every person required to register under section 4101 to register with the Secretary at such time, in such form and manner, and subject to such terms and conditions, as the Secretary may by regulations prescribe. Section 4101(a)(1) further provides that a section 4101 registration may be used only in accordance with regulations prescribed under section 4101. Section 4101(a)(5) requires reregistration under regulations prescribed by the Secretary in the event of certain changes in ownership.

A. Section 45Z Registration Requirement

Section 45Z(f)(1)(A)(i)(I) provides that no section 45Z credit shall be determined unless the taxpayer is registered as a producer of clean fuel under section 4101 at the time of production. Section 4101(a)(1) requires registration by “every person producing a fuel eligible for the clean fuel production credit (pursuant to section 45Z),” effective for transportation fuel produced after December 31, 2024. ³

B. Denial, Revocation, or Suspension of Registration

Under section 4101(c), rules similar to the rules of section 4222(c) apply for purposes of denial, revocation, or suspension of registration under section 4101. Section 4222 generally requires registration for certain tax-free sales under section 4221. Section 4222(c) provides that under regulations prescribed by the Secretary, the registration of any person under section 4222 may be denied, revoked, or suspended if the Secretary determines: (i) that such person has used such registration to avoid the payment of any tax imposed by chapter 32 of the Code (chapter 32), or to postpone or in any manner to interfere with the collection of any such tax, or (ii) that such denial, revocation, or suspension is necessary to protect the revenue. The flush language of section 4222(c) provides that denial, revocation, or suspension under section 4222(c) is in addition to any penalty provided by law for any act or failure to act.

Section 48.4222(a)-1 provides rules for registration, including application instructions. Section 48.4222(c)-1 provides rules for revocation or suspension of registration and authorizes the IRS in certain circumstances to revoke or temporarily suspend, upon written notice, the registration of any person under section 4222.

IV. Section 6417

Section 6417 permits an applicable entity to elect to treat an applicable credit determined with respect to the applicable

entity for the taxable year as a payment against Federal income taxes imposed by subtitle A of the Code equal to the amount of the credit. Section 6417(b)(9) provides that the 45Z credit is an applicable credit.

V. Section 6418

Section 6418 permits an eligible taxpayer to elect to transfer all or a portion of an eligible credit determined with respect to such taxpayer for any taxable year to an unrelated taxpayer. Section 6418(f)(1)(A) (viii) provides that the section 45Z credit is an eligible credit.

VI. Prior Guidance and Publications

A. Notice 2022-58 (Request for Feedback)