Reg. § 1.45X-1 General rules applicable to the advanced manufacturing production credit.
(a) Overview
(1) In general This section provides general rules regarding the advanced manufacturing production credit determined under section 45X of the Code (section credit). of this section provides definitions of certain terms that apply for purposes of section and the section regulations (as defined in of this section). through of this section provide the basic rules regarding the section credit, including the definition of the term produced by the taxpayer, and rules to determine the taxpayer that produces an eligible component and whether such taxpayer is entitled to claim a section credit in contract manufacturing arrangements; where the production of eligible components must occur; the treatment of integrated, incorporated or assembled eligible components; and the interaction between sections 45X and 48C of the Code. See for rules regarding sales to unrelated persons, sales to related persons, and the related person election (Related Person Election), including rules regarding the time, place, and manner of making the Related Person Election. See for the definitions of all eligible components (except applicable critical minerals) and the credit amounts available for each of these eligible components, including certain phase-out percentages. See for the definitions of applicable critical minerals and the rules regarding the determination of the credit amount for applicable critical minerals.
(2) Generally applicable definitions This provides definitions of terms that apply for purposes of section and the section regulations.
(i) Applicable critical mineral The term applicable critical mineral means any of the minerals that are listed in section and defined in .
(ii) Code The term Code means the Internal Revenue Code.
(iii) Contract manufacturing arrangement The term contract manufacturing arrangement is defined in of this section.
(iv) Electrode active materials The term electrode active materials is defined in section and described in .
(v) Eligible component The term eligible component is defined in section and described in and .
(vi) Eligible taxpayer The term eligible taxpayer is defined in of this section.
(vii) Extraction The term extraction is defined in .
(viii) Guidance The term guidance means guidance published in the Federal Register or Internal Revenue Bulletin, as well as administrative guidance such as forms, instructions, publications, or other guidance on the IRS.gov website. See and .
(ix) IRA The term IRA means Public Law 117-169, commonly known as the Inflation Reduction Act of 2022.
(x) IRS The term IRS means the Internal Revenue Service.
(xi) Produced by the taxpayer The term produced by the taxpayer is defined in of this section.
(xii) Related person The term related person is defined in .
(xiii) Related Person Election The term Related Person Election is defined in .
(xiv) Secretary The term Secretary means the Secretary of the Treasury or her delegate.
(xv) Section 45X regulations The term section regulations means the provisions of this section, through , and the regulations in this chapter under sections 6417 and 6418 of the Code that relate to the section credit.
(xvi) Unrelated person The term unrelated person is defined in section and described in .
(b) Credit amount Except as otherwise provided in section and , for purposes of section 38 of the Code, the amount of the section credit for any taxable year is equal to the sum of the credit amounts provided under section and described in and with respect to each eligible component that is produced by the taxpayer and, within the taxable year, sold by the taxpayer to an unrelated person. See for rules regarding sales of eligible components to related persons that may be treated as if sold to unrelated persons for purposes of section .
(c) Definition of produced by the taxpayer
(1) In general The term produced by the taxpayer means a process conducted by the taxpayer that substantially transforms constituent elements, materials, or subcomponents into a complete and distinct eligible component that is functionally different from that which would result from minor assembly or superficial modification of the elements, materials, or subcomponents, and includes both primary and secondary production. Primary production involves producing an eligible component using non-recycled materials while secondary production involves producing an eligible component using recycled materials.
(i) Partial transformation The term produced by the taxpayer does not include partial transformation that does not result in substantial transformation of constituent elements, materials, or subcomponents into a complete and distinct eligible component as described in this .
(ii) Minor assembly or superficial modification The term produced by the taxpayer does not include minor assembly of two or more constituent elements, materials, or subcomponents, or superficial modification of the final eligible component, if the taxpayer does not also engage in the process resulting in a substantial transformation described in or of this section.
(iii) Examples The following examples illustrate the application of this .
(A) Example 1 Taxpayers X, Y, and Z each produce one of three sections of a wind tower that together make up the wind tower. No taxpayer has produced an eligible component within the meaning of section because no taxpayer has produced all sections of the wind tower.
(B) Example 2 Same facts as of this section (Example 1), but taxpayers X, Y, and Z instead form Partnership XYZ. Partnership XYZ produces all three sections of the wind tower. Partnership XYZ has produced an eligible component within the meaning of section .
(C) Example 3 Taxpayer V puts the external casing on a battery module (within the meaning of ) that already had cells, battery management systems, and other components integrated into it. Taxpayer V has engaged in minor assembly and has not produced an eligible component within the meaning of section .
(D) Example 4 Taxpayer U purchases two finished halves of a wind turbine nacelle and combines them into a single nacelle. Taxpayer U has engaged in minor assembly and has not produced an eligible component within the meaning of section .
(E) Example 5 Taxpayer T purchases a dry cell battery and fills the electrolyte of the battery. Taxpayer T has engaged in minor assembly and has not produced an eligible component within the meaning of section .
(F) Example 6 Taxpayer W purchases a prefabricated wind turbine blade and applies paint and finishes. Taxpayer W has engaged in superficial modification of the blade and has not produced an eligible component within the meaning of section .
(2) Special rule for certain eligible components
(i) In general For solar grade polysilicon, electrode active materials, and applicable critical minerals, the term produced by the taxpayer means processing, converting, refining, or purifying source materials, such as brines, ores, or waste streams, to substantially transform the source materials to derive a distinct eligible component, and includes both primary and secondary production. For the production process for electrode active materials and applicable critical minerals, the term conversion is defined in or , respectively, and the term purification is defined in or , respectively.
(ii) Example Taxpayers X, Y and Z are unrelated C corporations that have calendar year taxable years. In 2024, X extracts raw lithium from natural mineral deposits and purifies the extracted material to 90% lithium by mass. X subsequently hires Y to further purify the lithium material furnished by X to a purity of no less than 99.9% lithium by mass as required by section and . In 2025, Y purifies the material to 99.9% lithium by mass (qualifying lithium). X subsequently sells the qualifying lithium to Z in 2026. X may not claim a section credit for the qualifying lithium sold to Z because the qualifying lithium was not produced by X within the meaning of this of this section, given that X did not transform the lithium material to derive a distinct eligible component (i.e., lithium which satisfies the minimum purity of 99.9% lithium by mass prescribed by section .
(3) Eligible taxpayer
(i) In general Except as otherwise provided in of this section, a taxpayer claiming a section credit with respect to an eligible component must be the taxpayer that directly performs the production activities that bring about a substantial transformation resulting in the eligible component and must sell such eligible component to an unrelated person.
(ii) Contract manufacturing arrangement
(A) In general If the production of an eligible component is performed in whole or in part pursuant to a contract that is a contract manufacturing arrangement, then, provided the other requirements of section are met, the party to such contract that may claim the section credit with respect to such eligible component is the party that performs the actual production activities that bring about a substantial transformation resulting in the eligible component.
(B) Contract manufacturing arrangement defined The term contract manufacturing arrangement means any agreement (or agreements) providing for the production of an eligible component if the agreement is entered into before the production of the eligible component to be delivered under the contract is completed. A routine purchase order for off-the-shelf property is not treated as a contract manufacturing arrangement for purposes of this . An agreement will be treated as a routine purchase order for off-the-shelf property if the contractor is required to make no more than de minimis modifications to the property to tailor it to the customer's specific needs, or if at the time the agreement is entered into, the contractor knows or has reason to know that the contractor can satisfy the agreement out of existing stocks or normal production of finished goods.
(iii) Special rule for contract manufacturing arrangements If an eligible component is produced by a taxpayer pursuant to a contract manufacturing arrangement, the parties to such agreement may determine by agreement the party that may claim the section credit. If a taxpayer enters into contract manufacturing arrangements with multiple fabricators to produce an eligible component, the parties to such agreements may determine by agreement the party that may claim the section credit. The IRS will not challenge the agreement of the parties provided all the parties submit signed certification statements in the manner required in Form 7207, Advanced Manufacturing Production Credit, or its instructions (as described in of this section) indicating that all parties agree as to the party that may claim the section credit.
(iv) Certification statement requirements A certification statement indicating that all parties to a contract manufacturing arrangement agree as to the party that will claim the section credit must include—
(A) All required information set forth in guidance; and
(B) A properly signed penalty of perjury statement that includes the following: under penalties of perjury, I declare that I have examined this statement, including accompanying documents, and to the best of my knowledge and belief, the facts presented in support of this statement are true, correct, and complete.
(v) Examples The following examples illustrate the application of this .
(A) Example 1: Contract manufacturing with sale Taxpayers X, Y and Z are unrelated C corporations that have calendar year taxable years. In 2024, pursuant to a contract manufacturing arrangement as described in of this section, X hires Y to produce a solar module. The contract is a tolling arrangement and provides that Y will produce the solar module according to X's designs and specifications and using the materials and subcomponents that X provides. X and Y enter an agreement providing that X is the sole party that may claim a section credit for the production and sale of the solar module, and X and Y each sign a certification statement as described in of this section reflecting this agreement. In 2025, Y produces and delivers the solar module to X, and in 2026, X sells the solar module to Z. X may claim a section credit in taxable year 2026 for the solar module it sold to Z provided all other requirements of section are met and the certification statements signed by X and Y meet the requirements described in of this section and are properly submitted by X. Y could claim a section credit if the agreement between X and Y had designated Y as the sole party that could claim a section credit for the production and sale of the solar module provided all other requirements of section are met and the certification statements signed by X and Y meet the requirements described in of this section and are properly submitted by Y.
(B) Example 2: Contract manufacturing with no sale Assume the facts are the same as in of this section (Example 1), except that X does not sell the solar module and instead X uses it to generate electricity for use in X's trade or business. Because there has been no sale, neither X nor Y may claim a section credit for the solar module regardless of whether X and Y submit signed certification statements described in of this section.
(C) Example 3: Multiple contract manufacturing arrangements Taxpayers V, W, X, Y, and Z are unrelated C corporations that have calendar year taxable years. In 2024, pursuant to three separate contract manufacturing arrangements as described in of this section, V hires W, X, and Y to produce the bottom, middle and top segments, respectively, of a single wind tower that V designed. W, X, Y, and V enter into an agreement providing that V is the sole party that may claim a section credit for the production and sale of the wind tower, and W, X, Y, and V each sign a certification statement as described in of this section reflecting this agreement. In 2024, W and X both produce and deliver their respective wind tower segments to the installation site, and in 2025, Y produces and delivers its wind tower segment to the installation site. In 2026, V sells the completed wind tower to Z. V may claim a section credit in taxable year 2026 for the wind tower it sold to Z provided all other requirements of section are met and the certification statements signed by V, W, X, and Y meet the requirements described in of this section and are properly submitted by V. W or X or Y could be the party that could claim a section credit if the agreement between V, W, X and Y had designated W or X or Y as the sole party that could claim a section credit for the production and sale of the wind tower provided all other requirements of section are met and the certification statements signed by V, W, X, and Y meet the requirements described in of this section and are properly submitted by the party designated as the sole party that could claim a section credit.
(D) Example 4: Applicable Critical Mineral Processing with Certification Taxpayers X, Y, and Z are unrelated C corporations that have calendar year taxable years. In 2024, X extracts raw lithium from natural mineral deposits and purifies the extracted material to 90% lithium by mass. X subsequently hires Y to further process the lithium material pursuant to a contract manufacturing arrangement as described in of this section. Specifically, the contract is a tolling arrangement and provides that X remains the owner for Federal income tax purposes throughout the purification process and that Y will further purify the lithium material furnished by X to a purity of no less than 99.9% lithium by mass as required by section and . X and Y enter an agreement providing that X is the sole party that may claim a section credit for the production and sale of the applicable critical mineral, and X and Y each sign a certification statement as described in of this section reflecting this agreement. In 2025, Y purifies the material to 99.9% lithium by mass (qualifying lithium) and delivers it to X. X subsequently sells the qualifying lithium to Z in 2026. X may claim a section credit in taxable year 2026 for the qualifying lithium sold to Z, provided that all other requirements of section are met, and the certification statements signed by X and Y meet the requirements described in of this section and are properly submitted by X. Y could claim a section credit if the agreement between X and Y had designated Y as the sole party that could claim a section credit for the qualifying lithium, provided that all other requirements of section are met, and the certification statements signed by X and Y meet the requirements described in of this section and are properly submitted by Y. Neither X nor Y could claim a section credit in the absence of a designating agreement and certification statement (described in and of this section, respectively) for the reasons stated in of this section.
(4) Timing of production and sale
(i) In general Production of eligible components for which a taxpayer is claiming a section credit may begin before December 31, 2022. Production of eligible components must be completed, and sales of eligible components must occur, after December 31, 2022.
(ii) Example Taxpayer X has a calendar year taxable year. Taxpayer X begins production of a related offshore wind vessel (as defined in section and described in ) in January 2022. Production is completed in December 2024 and the sale to an unrelated person occurs in 2025. Taxpayer X is eligible to claim the section credit in 2025, assuming that all other requirements of section are met.
(d) Produced in the United States
(1) In general Sales are taken into account for purposes of the section credit only for eligible components that are produced within the United States, as defined in section 638(1) of the Code, or a United States territory, which for purposes of section and the section regulations has the meaning of the term possession provided in section .
(2) Subcomponents Constituent elements, materials, and subcomponents used in the production of eligible components are not subject to the domestic production requirement provided in of this section.
(e) Production and sale in a trade or business An eligible component produced and sold by the taxpayer is taken into account for purposes of the section credit only if the production and sale are in a trade or business (within the meaning of section 162 of the Code) of the taxpayer.
(f) Sale of integrated components
(1) In general For purposes of the section credit, section provides that a taxpayer that produces an eligible component is treated as having sold such eligible component to an unrelated person if such component is integrated, incorporated, or assembled into another eligible component that is then sold to an unrelated person.
(i) Integrated, incorporated, or assembled The term integrated, incorporated, or assembled means the production activities by which an eligible component that is a constituent element, material, or subcomponent is substantially transformed into another complete and distinct eligible component that is not solar grade polysilicon, an electrode active material, or an applicable critical mineral. The term integrated, incorporated, or assembled does not mean the minor assembly or superficial modification of an eligible component used as an element, material, or subcomponent and other elements, materials, or subcomponents that results in a distinct product.
(ii) Special rule for eligible components resulting in solar grade polysilicon, electrode active materials, or applicable critical minerals For solar grade polysilicon, electrode active materials, and applicable critical minerals, the term integrated, incorporated, or assembled means the production activities in which an eligible component is processed, converted, refined, or purified to derive a distinct eligible component that is solar grade polysilicon, an electrode active material, or an applicable critical mineral. The term integrated, incorporated, or assembled does not mean minor assembly or superficial modification of an eligible component used as an element, material, or subcomponent and other elements, materials, or subcomponents that results in a distinct product.
(2) Application
(i) In general A taxpayer may claim a section credit for each eligible component the taxpayer produces and sells to an unrelated person, including any eligible component the taxpayer produces that was used as a constituent element, material, or subcomponent and integrated, incorporated, or assembled into another complete and distinct eligible component or another complete and distinct product (that is not itself an eligible component) that the taxpayer also produces and sells to an unrelated person.
(ii) Example: Sale of product with incorporated eligible components to unrelated person In 2022, X, a domestic corporation that has a calendar year taxable year, begins production of electrode active materials (EAMs) that are completed in 2023 and incorporated into battery cells that X also produces. In 2024, X incorporates those battery cells into battery modules (within the meaning of ) and integrates the battery modules into electric vehicles. X sells the electric vehicles to Z, an unrelated person, in 2024. X may claim a section credit for the EAMs, the battery cells, and the battery modules in 2024.
(g) Interaction between sections 45X and 48C
(1) In general For purposes of the section credit, consistent with section , property that would otherwise qualify as an eligible component (otherwise qualified property) is only an eligible component if the property is produced at a section facility (as defined in of this section) and no part of that section facility is also a section facility (as defined in of this section).
(2) Section 45X facility
(i) In general A section facility comprises the independently functioning tangible property used by the taxpayer that is necessary to be considered the producer of the otherwise qualified property within the meaning of or of this section, as applicable. The tangible property that comprises a section facility may be in more than one location.
(ii) Special rule for contract manufacturing arrangement In the case of a contract manufacturing arrangement where the parties have agreed to who can claim a section credit under of this section, the section facility under of this section is determined by taking into account the tangible property used to produce the otherwise qualified property, regardless of which party to the arrangement claims the credit.
(3) Section 48C facility
(i) In general A section facility includes all eligible property included in a qualifying advanced energy project for which a taxpayer receives an allocation of section credits under the allocation program established under section and claims such credits after August 16, 2022.
(ii) Eligible property. Eligible property is property that—
(A) Is necessary for the production or recycling of property described in section , re-equipping an industrial or manufacturing facility described in section , or re-equipping, expanding, or establishing an industrial facility described in section ;
(B) Is tangible personal property, or other tangible property (not including a building or its structural components), but only if such property is used as an integral part of the qualified investment credit facility; and
(C) With respect to which depreciation (or amortization in lieu of depreciation) is allowable.
(4) Examples The following examples illustrate the application of this , and assume any other requirements of section that are not described have been met:
(i) Example 1: Two independent section 45X facilities
(A) Facts Taxpayer owns and operates a manufacturing site that contains tangible property made up of Equipment A and Equipment B, each set of which functions independently and which is arranged in serial fashion. Equipment A is used by the taxpayer to produce otherwise qualified property 1. Equipment B is used to produce otherwise qualified property 2, a different type of product than otherwise qualified property 1. Taxpayer was allocated a section credit under the section program for a section facility that includes Equipment A and subsequently placed the section facility and Equipment A in service in taxable year 2026. Taxpayer claimed a section credit related to Equipment A for taxable year 2026.
(B) Analysis The section facility with respect to otherwise qualified property 1 is the tangible property made up of Equipment A, which is the independently functioning tangible property used by the taxpayer that is necessary to be considered the producer of the otherwise qualified property within the meaning of or of this section. However, Equipment A is also eligible property that is considered part of a section facility as defined in of this section. Therefore, otherwise qualified property 1 is not an eligible component under of this section because part (all in this case) of the section facility where otherwise qualified property 1 was produced is also considered a section facility. There is a separate section facility with respect to otherwise qualified property 2. That section facility is the tangible property made up of Equipment B. Equipment A is not included in the section facility as it is not used to produce otherwise qualified property 2. None of the tangible property comprising the section facility with respect to otherwise qualified property 2 is considered part of a section facility. Thus, otherwise qualified property 2 is an eligible component under of this section.
(ii) Example 2: Single section 45X facility at different locations
(A) Facts Taxpayer owns and operates two manufacturing sites at different locations. The tangible property at manufacturing site 1 is Equipment A, which is used to continue and finish the first part of the production process for otherwise qualified property. The tangible property at manufacturing site 2 is Equipment B, which is used to complete the production process of the same otherwise qualified property. Taxpayer was allocated a section credit under the section program for Equipment A.
(B) Analysis Equipment A and B comprise a single section facility regardless of location under of this section because both Equipment A and B were used to produce the otherwise qualified property and the use of Equipment A and B are necessary to consider the taxpayer the producer, consistent with the meaning of produced by the taxpayer in or of this section. However, part of the property comprising the section facility is also a section facility under of this section because Equipment A is eligible property that is part of a section facility. As a result, the otherwise qualified property is not considered an eligible component, and the sale of the otherwise qualified property will not generate a section credit.
(iii) Example 3: Independent tangible property and production of component
(A) Facts Taxpayer owns and operates two manufacturing sites. Manufacturing Site 1 contains tangible property that is Equipment A, which is used to produce photovoltaic cells. Manufacturing Site 2 contains tangible property that is Equipment B and tangible property that is Equipment C, which are arranged in serial fashion. Equipment B is used to produce photovoltaic cells. Equipment C is used to produce solar modules, in part, by combining the photovoltaic cells produced by Equipment A and Equipment B. Taxpayer was allocated a section credit under the section program for a section facility that includes Equipment B. Subsequently, Taxpayer places the section facility and Equipment B in service in taxable year 2026. Taxpayer claimed a section credit for Equipment B in taxable year 2026.
(B) Analysis Equipment A and Equipment B each comprise a section facility since each independently functions to produce otherwise qualified property, photovoltaic cells. No part of the section facility comprised of Equipment A is eligible property that is included in a section facility. Thus, the photovoltaic cells produced in the section facility comprised of Equipment A are eligible components. The photovoltaic cells that are produced in the section facility comprised of Equipment B are otherwise qualified property that cannot qualify as eligible components because part (all in this case) of the section facility comprised of Equipment B where the photovoltaic cells are produced is also considered a section facility. Solar modules, a different otherwise qualified property, are produced in using Equipment C, which is itself a separate section facility. Equipment C does not have to include any of the tangible property included in Equipment A or B under of this section because it is not necessary for the Taxpayer to use that equipment to be considered the producer of the solar modules for purposes of section . As a result, no part of section facility comprised of Equipment C where the solar modules are produced is considered a section facility, and the solar modules are considered an eligible component for purposes of section .
(iv) Example 4: Manufacturing under a contract manufacturing arrangement
(A) Facts X is hired by Y to manufacture photovoltaic cells, but X and Y agree under of this section that Y will be the party to claim any section credit resulting from the sale of the photovoltaic cells. X owns and operates a manufacturing site that contains equipment that is tangible property used to produce the photovoltaic cells. X was allocated a section credit under the section program for a section facility that includes the equipment used to produce the photovoltaic cells. The equipment is eligible property that is part of the section facility that was placed in service in taxable year 2026. X claimed a section credit for the equipment in taxable year 2026.
(B) Analysis Under of this section, in determining the section facility related to the photovoltaic cells (the otherwise qualified property), Y must consider the equipment that X used in producing the photovoltaic cells. In this case, that means that part of the section facility is also considered a section facility, as the equipment used to produce the photovoltaic cells is also eligible property that is part of a section facility. Therefore, the photovoltaic cells are not eligible components for purposes of section to X or Y, and there is no section credit generated if the photovoltaic cells are sold.
(v) Example 5: Multiple tangible property used to produce separate eligible components
(A) Facts Assume the facts are the same as in of this section (Example 4), except that Y and X also agreed for X to produce photovoltaic wafers using other equipment that is tangible property that is different than the equipment X uses to produce the photovoltaic cells.
(B) Analysis While Y must consider the equipment that X uses to produce the photovoltaic wafers (the otherwise qualified property) under of this section to determine the section facility associated with the photovoltaic wafer production, Y is not required to include any of the equipment used by X to produce the photovoltaic cells because it was not necessary to use that equipment to be considered the producer of the photovoltaic wafers. As a result, no part of the section facility related to photovoltaic wafers is part of a section facility. Therefore, the photovoltaic wafers are eligible components for purposes of section and Y will be entitled to claim a section credit upon the sale.
(h) [Reserved]
(i) Anti-abuse rule
(1) In general The rules of section and the section regulations must be applied in a manner consistent with the purposes of section and the section regulations (and the regulations in this chapter under sections and related to the section credit). A purpose of section and the section regulations (and the regulations in this chapter under sections and related to the section credit) is to provide taxpayers an incentive to produce eligible components in a manner that contributes to the development of secure and resilient supply chains. Accordingly, the section credit is not allowable if the primary purpose of the production and sale of an eligible component is to obtain the benefit of the section credit in a manner that is wasteful, such as discarding, disposing of, or destroying the eligible component without putting it to a productive use. A determination of whether the production and sale of an eligible component is inconsistent with the purposes of section and the section regulations (and the regulations in this chapter under sections and related to the section credit) is based on all facts and circumstances.
(2) Example
(i) Facts Taxpayer is engaged in the activity of producing and selling multiple units of Eligible Component 1 (EC1). Taxpayer engages in no other activities. The cost of producing each unit of EC1 is less than the amount of the section credit that would be available if each EC1 qualified for the section credit. Taxpayer sells some of its units of EC1 to related persons and makes a Related Person Election pursuant to section . Taxpayer also sells some of its units of EC1 to unrelated persons. Taxpayer sells all units of EC1 at an amount equal to cost plus a markup to reflect an anticipated accommodation fee and establishes corresponding accounts receivable at the time of the respective sales. In addition, Taxpayer knows or reasonably expects that after acquiring the units of EC1, the related and unrelated transferees will not resell the units of EC1 or use them in their trades or businesses. Taxpayer intends to obtain the benefit from the section credit by claiming such credits itself or monetizing such credits through an election under section or section . Taxpayer eliminates the aforementioned accounts receivable at the time it claims the section credit or receives related payments attributable to the section credit, and further makes payments to the related and unrelated transferees as accommodation fees computed as a percentage of such benefits.
(ii) Analysis Based on all of the facts and circumstances in of this section, the primary purpose of Taxpayer's production and sale of EC1 is to obtain the benefit of the section credit in a manner that is wasteful and will not be treated as the production and sale of eligible components in a trade or business of Taxpayer for purposes of section and (2). Taxpayer is not eligible for the section credit with respect to units of EC1 that it produced and sold. See sections (excessive payments) and 6418(g)(2) (excessive credit transfer).
(j) Applicability date This section applies to eligible components for which production is completed and sales occur after December 31, 2022, and during a taxable year ending on or after October 28, 2024.
[T.D. 10010, 89 FR 85831, Oct. 28, 2024; 89 FR 93171, Nov. 26, 2024]