Article

How to register for the clean fuel production credit by Jan. 1, 2025

Guidance on section 45Z

June 25, 2024 · Authored by Robert Moczulewski, Juan Jeronimo Aldrete, Jiyoon Choi, Beckett Woodworth

On May 31, 2024, the U.S. Department of the Treasury and Internal Revenue Service (IRS) released Notice 2024-49 [1] on the clean fuel production credit established by the Inflation Reduction Act (IRA). The Notice provides guidance on the registration requirements for claiming the clean fuel production credit under section 45Z of the Internal Revenue Code. To qualify for this credit for the production starting Jan. 1, 2025, taxpayers must obtain a signed registration letter from the IRS dated on or before Jan. 1, 2025. This registration is a critical step, and taxpayers are encouraged to apply as soon as possible to ensure timely processing.

Registration process and deadlines

Producers of clean fuel must ensure compliance with all outlined requirements to avoid delays. To streamline the registration process, the IRS has set a deadline of July 15, 2024, for applications to be processed in time for the Jan. 1, 2025, start date. Applications received after July 15, 2024, will be processed as quickly as possible, but there is no guarantee to receive the registration by Jan. 1, 2025.

The Notice also outlines the necessary procedures for registration. The registration can be made on Form 637, Application for Registration. The form has been revised to include the specification of Activity Letters “CN” for non-sustainable aviation fuel (SAF) transportation fuel and “CA” for SAF. If an applicant needs to file the registration before the form is updated, the activity letter can be manually inputted.

The following information is required to be included on Form 637.

For non-SAF transportation fuel,

• Type of non-SAF fuel and the annual volume of each type;
• The feedstock(s) and country of origin of each feedstock used to produce each type of non-SAF;
• The location(s) and a description of the applicant’s production facilities;
• Each production facility’s annual fuel production capacity, and whether the applicant’s production facilities are operational and currently producing volumes of non-SAF transportation fuel;