Pre-Filing Registration Requirements for Certain Tax Credit Elections, 40086-40095 [2023-12797]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 88, Number 118 (Wednesday, June 21, 2023)]
[Rules and Regulations]
[Pages 40086-40095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-12797]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9975]
RIN 1545-BQ76


Pre-Filing Registration Requirements for Certain Tax Credit 
Elections

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Temporary regulations.

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SUMMARY: This document contains temporary regulations setting forth 
mandatory information and registration requirements for taxpayers 
planning to make an elective payment election under the Inflation 
Reduction Act of 2022 and the CHIPS Act of 2022 to treat the amount of 
certain tax credits as a payment of Federal income tax, or in the case 
of a partnership or S corporation, to receive a payment in the amount 
of such credits. This document also contains temporary regulations 
setting forth mandatory information and registration requirements for 
taxpayers planning to make an election to transfer certain Federal 
income tax credits under the Inflation Reduction Act of 2022. These 
temporary regulations affect tax-exempt organizations, State and local 
governments, Indian tribal governments, Alaska Native Corporations, the 
Tennessee Valley Authority, rural electric cooperatives, and, in the 
case of three credits, certain taxpayers eligible to elect the elective 
payment of credit amounts in a taxable year under section 6417 of the 
Internal Revenue Code (Code). These temporary regulations also affect 
taxpayers eligible to make an elective payment election instead of 
claiming the advanced manufacturing investment credit under section 48D 
of the Code. These temporary regulations further affect taxpayers 
eligible to elect to transfer certain Federal income tax credits under 
section 6418 of the Code.

DATES: 
    Effective date: This temporary regulation is effective on June 21, 
2023.
    Applicability date: For dates of applicability, see Sec. Sec.  
1.48D-6T(j), 1.6417-5T(d), and 1.6418-4T(d).

FOR FURTHER INFORMATION CONTACT: Concerning these temporary 
regulations, Lani M. Sinfield at (202) 317-5871 (not a toll free 
number).

SUPPLEMENTARY INFORMATION:

Background

I. Overview

    This document amends the Income Tax Regulations (26 CFR part 1) to 
add temporary regulations providing information and registration 
requirements that must be completed before elections available under 
sections 48D(d), 6417, and 6418 of the Code may be made.
    In accordance with section 7805(e)(1) of the Code, concurrent with 
the publication of this Treasury Decision, the Department of the 
Treasury (Treasury Department) and the IRS are publishing in the 
Proposed Rules section of this issue of the Federal Register three 
notices of proposed

[[Page 40087]]

rulemaking that contain proposed regulations under Sec. Sec.  1.48D-6, 
1.6417-5, and 1.6418-4, the text of which is identical to the text of 
Sec. Sec.  1.48D-6T, 1.6417-5T, and 1.6418-4T of the temporary 
regulations. REG-105595-23 provides proposed regulations under section 
48D(d). REG-101607-23 provides proposed regulations under sections 6241 
and 6417. REG-101610-23 provides proposed regulations under section 
6418.
    Interested persons are directed to the ADDRESSES and COMMENTS AND 
PUBLIC HEARING sections of the preambles to REG-105595-23, REG-101607-
23, and REG-101610-23 for information on submitting public comments or 
the public hearings for the proposed regulations.

II. Sections 48D(d), 6417, and 6418

    A notice of proposed rulemaking (REG-105595-23) in the Proposed 
Rules section in this issue of the Federal Register provides a 
background description of section 48D. A notice of proposed rulemaking 
(REG-101607-23) in the Proposed Rules section in this issue of the 
Federal Register provides a background description of section 6417. A 
notice of proposed rulemaking (REG-101610-23) in the Proposed Rules 
section in this issue of the Federal Register provides a background 
description of section 6418.

Explanation of Provisions

I. Pre-Filing Registration Requirements Under Section 48D(d)

    Temp. Reg. Sec.  1.48D-6T(b)(1) provides the mandatory pre-filing 
registration process that, except as provided in guidance, a taxpayer 
must complete as a condition of, and prior to, any amount being treated 
as a payment against the tax imposed under Sec.  1.48D-6(a)(1), or an 
amount paid to a partnership or S corporation pursuant to Sec.  1.48D-
6(d)(2)(ii)(A). A taxpayer is required to use the pre-filing 
registration process to register each qualified investment in an 
advanced manufacturing facility. A taxpayer that does not obtain a 
registration number or report the registration number on its annual tax 
return with respect to an advanced manufacturing facility is ineligible 
to receive any elective payment amount with respect to the amount of 
any section 48D credit determined with respect to that advanced 
manufacturing facility. However, completion of the pre-filing 
registration requirements and receipt of a registration number does 
not, by itself, mean that the taxpayer is eligible to receive a payment 
with respect to the section 48D credits determined with respect to the 
advanced manufacturing facility.
    The pre-filing registration requirements are that a taxpayer:
    (1) must complete the registration process electronically through 
the IRS electronic portal and in accordance with the instructions 
provided therein, unless otherwise provided in guidance;
    (2) must satisfy the registration requirements and receive a 
registration number prior to making a section 48D(d)(1) elective 
payment election on the taxpayer's tax return for the taxable year at 
issue;
    (3) is required to obtain a registration number for each qualified 
investment in an advanced manufacturing facility with respect to which 
a section 48D credit will be determined and for which the taxpayer 
wishes to make a section 48D(d)(1) elective payment election; and
    (4) must provide the specific information required to be provided 
as part of the pre-filing registration process. The provision of such 
information, which includes information about the taxpayer and about 
the qualified investment in an advanced manufacturing facility, would 
allow the IRS to prevent duplication, fraud, improper payments, or 
excessive payments under section 48D. For example, verifying 
information about the taxpayer would allow the IRS to mitigate the risk 
of fraud or improper payments to entities that are not eligible 
taxpayers. Information about the taxpayer's taxable year would allow 
the IRS to ensure that an elective payment election is timely made on 
the entity's annual tax return. Information about the advanced 
manufacturing facility, including its address and coordinates 
(longitude and latitude), supporting documentation, beginning of 
construction date, and placed in service date would allow the IRS to 
mitigate the risk of duplication, fraud, and improper payments for 
properties that are not advanced manufacturing facilities.
    Temp. Reg. Sec.  1.48D-6T(b)(7)(i) provides that, after a taxpayer 
completes pre-filing registration with respect to each qualified 
investment in an advanced manufacturing facility with respect to which 
the taxpayer intends to elect a section 48D(d) elective payment 
election for the taxable year, the IRS will review the information 
provided and will issue a separate registration number for each 
qualified investment for which the taxpayer provided sufficient 
verifiable information.
    Temp. Reg. Sec.  1.48D-6T(b)(7)(ii) provides that a registration 
number is valid only for the taxable year for which it is obtained. 
Temp. Reg. Sec.  1.48D-6T(b)(7)(iii) provides that, if an elective 
payment election will be made with respect to a qualified investment in 
an advanced manufacturing facility for a taxable year for which a 
registration number under this section has been obtained for a prior 
taxable year, the taxpayer must renew the registration each subsequent 
year in accordance with applicable guidance, including attesting that 
all the facts previously provided are still correct or updating any 
facts that are relevant in calculating the amount of the section 48D 
credit. Temp. Reg. Sec.  1.48D-6T(b)(7)(iv) provides that, if facts 
change with respect to the qualified investment in an advanced 
manufacturing facility for which a registration number has been 
previously obtained, the taxpayer must amend the registration to 
reflect these new facts. The regulations provide, for example, that if 
the facility previously registered for an elective payment election 
undergoes a change of ownership (incident to a corporate reorganization 
or an asset sale) such that the new owner has a different employer 
identification number (EIN) than the owner who obtained the original 
registration, the original owner would be required to amend the 
original registration to disassociate its EIN from the advanced 
manufacturing facility and the new owner must submit an original 
registration (or if the new owner previously registered other advanced 
manufacturing facilities, must amend its original registration) to 
associate the new owner's EIN with the previously registered advanced 
manufacturing facility.
    Lastly, Temp. Reg. Sec.  1.48D-6(b)(7)(v) provides that the 
taxpayer is required to include the registration number of the advanced 
manufacturing facility on the taxpayer's annual return for the taxable 
year for an election under Temp. Reg. Sec.  1.48D-6(a)(1). The IRS will 
treat an elective payment election as ineffective with respect to any 
section 48D credit determined with respect to the advanced 
manufacturing facility for which the taxpayer does not include a valid 
registration number on the annual tax return.

II. Pre-Filing Registration Requirements and Additional Information 
Under Section 6417

    Section 6417(d)(5) provides that, as a condition of, and prior to, 
any amount being treated as a payment that is made by the taxpayer 
under section 6417(a) or any payment being made pursuant to section 
6417(c), the Secretary may require such information or registration as 
the Secretary deems necessary or appropriate for purposes of preventing

[[Page 40088]]

duplication, fraud, improper payments, or excessive payments.
    In general, stakeholders requested additional information about 
this provision and requested that the regulations balance the need to 
prevent fraud and abuse with the burden on taxpayers. Stakeholders 
recommended that the information required to be provided to the IRS 
should be provided in a manner that facilitates automated procedures to 
help catch potential fraud, discourages abusive or otherwise 
illegitimate claims, and allows efficient and prompt review (both 
before payment and through audits). Stakeholders recommended that all 
required documents and information should be able to be submitted 
easily via an online portal. Stakeholders recommended that information 
or registration should be as consistent as possible across sections 
48D(d)(1), 6417(d)(5), and 6418(g)(1).
    Temp. Reg. Sec.  1.6417-5T provides the mandatory pre-filing 
registration process. Temp. Reg. Sec.  1.6417-5T(a) provides an 
overview of this process and requires an applicable entity or electing 
taxpayer to satisfy the pre-filing registration requirements as a 
condition of, and prior to, making an elective payment election. An 
applicable entity or electing taxpayer is required to use the pre-
filing registration process to register itself as intending to make the 
elective payment election, to list all applicable credits it intends to 
claim, and to list each applicable credit property that contributed to 
the determination of such credits as part of the pre-filing submission 
(or amended submission). An applicable entity or electing taxpayer that 
does not obtain a registration number and report the registration 
number on its annual tax return with respect to an applicable credit 
property is ineligible to make an elective payment election to treat 
any elective payment amount with respect to the amount of any credit 
determined with respect to that applicable credit property as a payment 
of tax. However, completion of the pre-filing registration requirements 
and receipt of a registration number does not, by itself, mean that the 
applicable entity or electing taxpayer will receive a payment with 
respect to the applicable credits determined with respect to the 
applicable credit property.
    Temp. Reg. Sec.  1.6417-5T(b) provides the following pre-filing 
registration requirements.
    First, an applicable entity or electing taxpayer must complete the 
pre-filing registration process electronically through an IRS 
electronic portal in accordance with the instructions provided therein, 
unless otherwise provided in guidance. If the election is by a member 
of a consolidated group, the member must complete the pre-filing 
registration process as a condition of, and prior to, making an 
elective payment election. See Sec.  1.1502-77 (providing rules 
regarding the status of the common parent as agent for its members).
    Second, an applicable entity or electing taxpayer must satisfy the 
registration requirements and receive a registration number prior to 
making an elective payment election on the applicable entity's tax 
return for the taxable year at issue.
    Third, an applicable entity or electing taxpayer is required to 
obtain a registration number for each applicable credit property with 
respect to which an applicable credit will be determined and for which 
the applicable entity or electing taxpayer intends to make an elective 
payment election.
    Finally, an applicable entity or electing taxpayer must provide the 
specific information required to be provided as part of the pre-filing 
registration process. The provision of such information, which includes 
information about the taxpayer, about the applicable credits, and about 
the applicable credit property, will allow the IRS to prevent 
duplication, fraud, improper payments, or excessive payments under 
section 6417. For example, verifying information about the taxpayer 
will allow the IRS to mitigate the risk of fraud or improper payments 
to entities that are not applicable entities or electing taxpayers. 
Information about the taxpayer's taxable year will allow the IRS to 
ensure that an elective payment election is timely made on the entity's 
annual tax return. Information about applicable credit properties, 
including their address and coordinates (longitude and latitude), 
supporting documentation, beginning of construction date, and placed in 
service date will allow the IRS to mitigate the risk of duplication, 
fraud, and improper payments for properties that are not applicable 
credit properties. Information about whether an investment tax credit 
property was acquired using any Restricted Tax Exempt Amounts will 
allow the IRS to prevent improper payments.
    Temp. Reg. Sec.  1.6417-5T(c) provides information about the 
required registration number. Temp. Reg. Sec.  1.6417-5T(c)(1) provides 
that, after an applicable entity or electing taxpayer completes the 
pre-filing registration process as provided in proposed Sec.  1.6417-
5(b) for the applicable credit properties with respect to which the 
entity intends to make an elective payment election in the taxable 
year, the IRS will review the information provided and will issue a 
separate registration number for each applicable credit property for 
which the applicable entity or electing taxpayer provided sufficient 
verifiable information, as provided in guidance.
    Temp. Reg. Sec.  1.6417-5T(c)(2) provides that a registration 
number is valid only for the taxable year for which it is obtained. 
Temp. Reg. Sec.  1.6417-5T(c)(3) provides that, if an elective payment 
election will be made with respect to an applicable credit property for 
which a registration number under proposed Sec.  1.6417-5 has been 
previously obtained, the applicable entity or electing taxpayer will be 
required to renew the registration each year in accordance with 
applicable guidance, including attesting that all the facts previously 
provided are still correct or updating any facts. Temp. Reg. Sec.  
1.6417-5T(c)(4) provides that, if specified changes occur with respect 
to one or more applicable credit properties for which a registration 
number has been previously obtained, an applicable entity or electing 
taxpayer is required to amend the registration (or may need to submit a 
new registration) to reflect these new facts. For example, one 
stakeholder asked that, if a taxpayer becomes a party to an internal 
reorganization under section 368(a) (such as a merger or distribution 
in a nonrecognition transaction) during the election period, the 
elective payment election should carry over to the successor entity. 
The temporary regulations provide that if a facility previously 
registered for an elective payment election undergoes a change of 
ownership (incident to a corporate reorganization or an asset sale) 
such that the new owner has a different employer identification number 
(EIN) than the owner who obtained the original registration, the 
original owner is required to amend the original registration to 
disassociate its EIN from the credit property and the new owner must 
submit an original registration (or if the new owner previously 
registered other credit properties, must amend its original 
registration) to associate the new owner's EIN with the previously 
registered credit property.
    Lastly, Temp. Reg. Sec.  1.6417-5T(c)(5) provides that the 
applicable entity or electing taxpayer is required to include the 
registration number of the applicable credit property on their annual 
tax return for the taxable year. The IRS will treat an elective payment 
election as ineffective with respect to the portion of a credit 
determined with

[[Page 40089]]

respect to an applicable credit property for which the applicable 
entity or electing taxpayer does not include a valid registration 
number on the annual tax return.

III. Pre-Filing Registration Requirements and Additional Information 
Under Section 6418

    Section 6418(g)(1) provides that as a condition of, and prior to, 
any transfer of any portion of an eligible credit under section 6418, 
the Secretary may require such information (including, in such form or 
manner as is determined appropriate by the Secretary, such information 
returns) or registration as the Secretary deems necessary for purposes 
of preventing duplication, fraud, improper payments, or excessive 
payments under this section.
    In general, consistent with section 6417, stakeholders requested 
additional information about this provision and requested that the 
regulations balance the need to prevent fraud and abuse with the burden 
on taxpayers. Stakeholders recommended a registration system that 
assigns a transfer number to an eligible taxpayer that can be used by 
transferee taxpayers to claim transferred credits and allows the IRS to 
track transfers of eligible credits. Stakeholders also recommended that 
information or registration requirements should be as consistent as 
possible across sections 48D(d)(1), 6417(d)(5), and 6418(g)(1). In 
order to meet the purpose of section 6418(g)(1), the Treasury 
Department and the IRS have determined that it is necessary to 
establish a mandatory registration process that is in place before the 
end of the 2023 calendar year, which is the first full taxable year 
during which a transfer election under section 6418 is available.
    Temp. Reg. Sec.  1.6418-4T generally provides rules requiring that 
eligible taxpayers register before filing the return on which a 
transfer election is made and provide information related to each 
eligible credit property for which the eligible taxpayer intends to 
transfer a specified credit portion. Temp. Reg. Sec.  1.6418-4T(a), 
consistent with section 6418(g)(1), requires that, as a condition of, 
and prior to, making an election to transfer a specified credit 
portion, an eligible taxpayer satisfy the pre-filing registration 
requirements in Temp. Reg. Sec.  1.6418-4T(b). After the required pre-
filing registration process is successfully completed, an eligible 
taxpayer will receive a unique registration number from the IRS for 
each registered eligible credit property for which the eligible 
taxpayer intends to transfer a specified credit portion. The Treasury 
Department and the IRS intend for this pre-filling registration process 
to occur through an IRS electronic portal (unless otherwise allowed in 
guidance). An eligible taxpayer that does not obtain a registration 
number and report the registration number on its return with respect to 
an eligible credit property is ineligible to make a transfer election. 
However, completion of the pre-filing registration requirements and 
receipt of a registration number does not, by itself, mean the eligible 
taxpayer is eligible to transfer any specified credit portion 
determined with respect to the eligible credit property. The 
registration number also must be reported on the eligible taxpayer's 
return.
    Temp. Reg. Sec.  1.6418-4T(b) provides the following pre-filing 
registration requirements.
    First, an eligible taxpayer must complete the pre-filing 
registration process electronically through an IRS electronic portal in 
accordance with the instructions provided therein, unless otherwise 
provided in guidance. If the election is by a member of a consolidated 
group, the member must complete the pre-filing registration process as 
a condition of, and prior to, making an elective payment election. See 
Sec.  1.1502-77 (providing rules regarding the status of the common 
parent as agent for its members).
    Second, an eligible taxpayer must satisfy the registration 
requirements and receive a registration number prior to making a 
transfer election for a specified credit portion on the eligible 
taxpayer's return for the taxable year at issue.
    Third, an eligible taxpayer is required to obtain a registration 
number for each eligible credit property with respect to which a 
transfer election of a specified credit portion is made.
    Finally, an eligible taxpayer must provide the specific information 
required to be provided as part of the pre-filing registration process. 
The provision of such information, which includes information about the 
taxpayer, about the eligible credits, and about the eligible credit 
property, will allow the IRS to prevent duplication, fraud, improper 
payments, or excessive transfers under section 6418. For example, 
verifying information about the taxpayer will allow the IRS to mitigate 
the risk of fraud or improper transfers. Information about eligible 
credit properties, including their address and coordinates (longitude 
and latitude), supporting documentation, beginning of construction 
date, and placed in service date will allow the IRS to mitigate the 
risk of duplication, fraud, and improper transfers for properties that 
are not eligible credit properties.
    Temp. Reg. Sec.  1.6418-4T(c) provides rules related to the 
registration number that is obtained after the IRS has reviewed and 
approved the taxpayer's submitted information. First, these rules 
provide that a registration number is valid for an eligible taxpayer 
only for the taxable year for which it is obtained, and for a 
transferee taxpayer's taxable year in which the specified credit 
portion is taken into account. Second, Temp. Reg.Sec.  1.6418-4T(c) 
provides rules for the renewal of a registration number that has been 
previously obtained. The eligible taxpayer is required to renew the 
registration with respect to an eligible credit property each year in 
accordance with guidance, including attesting that all the facts are 
still correct or updating any facts. Third, the temporary regulations 
provide that, if facts change with respect to an eligible credit 
property for which a registration number has been previously obtained, 
an eligible taxpayer is required to amend the registration to reflect 
these new facts. Lastly, the temporary regulations provide that an 
eligible taxpayer is required to include the registration number of the 
eligible credit property on the eligible taxpayer's return for the 
taxable year, as provided in Temp. Reg. Sec.  1.6418-2T(b), for an 
election to be effective with respect to any eligible credit determined 
with respect to any eligible credit property. The IRS will treat a 
transfer election as ineffective with respect to an eligible credit 
determined with respect to an eligible credit property for which the 
eligible taxpayer does not include a valid registration number on its 
return.
    A transferee taxpayer is also required to report the registration 
number received from an eligible taxpayer on its return for the taxable 
year that the transferee taxpayer takes the transferred eligible credit 
into account.

Applicability Dates

    The temporary regulations under Sec.  1.48D-6T apply to taxable 
years ending on or after June 21, 2023. The temporary regulations under 
Sec.  1.48D-6T expire on June 12, 2026.
    The temporary regulations under Sec.  1.6417-5T apply to taxable 
years ending on or after June 21, 2023. The temporary regulations under 
Sec.  1.6417-5T expire on June 12, 2026.
    The temporary regulations under Sec.  1.6418-4T apply to taxable 
years ending on or after June 21, 2023. The temporary regulations under 
Sec.  1.6418-4T expire on June 12, 2026.

[[Page 40090]]

Special Analyses

I. Good Cause

    The Administrative Procedure Act (5 U.S.C. Subchapter II) provides 
an exception to generally applicable rulemaking requirements when an 
agency makes a finding of good cause (and incorporates the finding and 
a brief statement of reasons therefor in the rules issued).
    The Treasury Department and the IRS find that good cause exists for 
making these temporary regulations immediately effective without notice 
and comment. The pre-filing registration process is critical to the 
implementation of sections 48D, 6417, and 6418. As expressly authorized 
by statute to prevent duplication, fraud, and improper or excessive 
payments, the temporary regulations condition elective payment and 
transferability on pre-registration with the IRS.\1\ Section 48D 
applies to property placed in service after December 31, 2022, and 
sections 6417 and 6418 each apply to taxable years beginning after that 
date. This means that filers will be able take advantage of these 
provisions for their 2023 tax years.
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    \1\ Sections 48D(d)(2)(E) and 6417(d)(5) authorize the Secretary 
to require such information or registration as the Secretary deems 
necessary or appropriate for purposes of preventing duplication, 
fraud, improper payments, or excessive payments as a condition of, 
and prior to, any amount being treated as a payment made by or to 
the taxpayer. Section 6418(g)(1) states that, as a condition of, and 
prior to, any transfer of any portion of an eligible credit pursuant 
to section 6418(a), the Secretary may require such information 
(including, in such form or manner as is determined appropriate by 
the Secretary, such information returns) or registration as the 
Secretary deems necessary for purposes of preventing duplication, 
fraud, improper payments, or excessive payments under section 6418.
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    The Treasury Department and the IRS believe it is important to 
immediately put into effect these pre-registration requirements. The 
pre-registration process collects critical information to minimize 
fraudulent elections and prevent duplication and improper or excessive 
payments by ensuring basic eligibility requirements for eligible 
credits before the election is made. Validating certain information 
before the annual tax return process will result in more accurate 
review of the veracity of the information and fewer duplicate, 
fraudulent, improper, or excessive transfers or payments. In addition, 
the pre-filing registration requirement is expected to reduce the need 
for recovering erroneous payments and adjusting return positions via 
costly, burdensome, and inefficient examination, appeals, and 
litigation processes (which, in the case of section 6418, could 
potentially be needed with respect to both parties to the credit 
transfer transaction). Immediate implementation of these safeguards is 
important because it is anticipated that there will be an immediate and 
significant increase in utilization of the tax incentives described in 
sections 48D(d), 6417, and 6418 by entities that have not historically 
had return-filing obligations, increasing the risk of the duplicative, 
fraudulent, and improper or excessive payments that the pre-
registration process is intended to mitigate.
    The Treasury Department and the IRS find that good cause exists for 
making these temporary regulations effective without notice and comment 
because failure to do so would be contrary to the public interest. 
Without these temporary regulations, the IRS may not be able to timely 
and effectively develop and implement a pre-filing registration system. 
Lack of a pre-registration process would create risk for the public 
fisc by increasing the likelihood of duplicate, fraudulent, improper, 
or excessive payments or transfers. The pre-filing registration system 
also must be developed sufficiently in advance of the filing season for 
taxpayers to have time to gather the necessary information and complete 
the registration process and for the IRS to be able to review the 
submitted information and issue registration numbers. Failing to pre-
register taxpayers who have never before filed a tax return with the 
IRS could significantly delay the processing of those taxpayers' 
returns because procedures to allow them to file an annual tax return 
would need to be taken during the middle of filing season. Such delay 
would harm taxpayers and also potentially result in the IRS owing 
interest on any refunds due, further damaging the public fisc.
    Additionally, it is in the public interest to have certainly 
regarding the requirements for pre-registration as far before the 2023 
filing season as possible to ensure the ability to timely and 
accurately fulfill the requirements. This certainty is particularly 
crucial for those filers already or soon to be engaged in an activity 
that would qualify them to make an elective payment or transfer 
election. Taxpayer certainty is also especially important for 
particular populations of affected taxpayers such as entities that have 
not historically had return-filing obligations because they may need 
significant time to review and understand the underlying tax law and 
the pre-filing registration requirements.
    The Treasury Department and the IRS also find that good cause 
exists for making these temporary regulations immediately effective 
because it would be impracticable to comply with the notice and 
comments process. The processes established in sections 48D, 6417, and 
6418 are novel and complex. Determining how these processes interact 
with established tax procedures is complicated and in some aspects very 
difficult to reconcile. The elections under sections 6417 and 6418 
apply to numerous credits, each of which contain different substantive 
eligibility and other requirements, which had to be separately analyzed 
to understand what information should be collected as part of the pre-
filing registration process. Developing a previously nonexistent 
registration process, new filing portal, and determining the necessary 
elements to protect the fisc has been time consuming. The Treasury 
Department and the IRS have moved quickly to understand these complex 
Code sections and determine technological elements needed to create the 
pre-filing registration process and portal.
    To accomplish the purpose of the pre-filing registration process, 
the electronic portal must open by Fall 2023. The Treasury Department 
and the IRS understand the need to carefully consider all public 
comments and provide robust responses to all relevant comments. The few 
months available between the publication of proposed regulations and 
the opening of the electronic portal is insufficient time to receive, 
review, and meaningfully respond to public comments. Furthermore, there 
would not be sufficient time after all comments are considered to then 
make corresponding changes to the electronic portal, which would 
require technological development and user testing.
    Comments are being solicited in the cross-referenced notices of 
proposed rulemaking that are in the Proposed Rules section in this 
issue of the Federal Register. Any comments will be considered before 
final regulations are issued.

II. Paperwork Reduction Act

    The collection of information contained in these temporary 
regulations has been submitted to the Office of Management and Budget 
for review in accordance with the Paperwork Reduction Act. Commenters 
are strongly encouraged to submit public comments electronically. 
Submit electronic submissions for the proposed information collection 
to the IRS via email at [email protected] (indicate REG-101607-23 on 
the Subject line). Comments on the collection of information should be 
received by August 14, 2023. Comments are specifically requested 
concerning:

[[Page 40091]]

    Whether the proposed collection of information is necessary for the 
proper performance of the functions of the IRS, including whether the 
information will have practical utility;
    The accuracy of the estimated burden associated with the proposed 
collection of information (see below);
    How the quality, utility, and clarity of the information to be 
collected may be enhanced;
    How the burden of complying with the proposed collection of 
information may be minimized, including through the application of 
automated collection techniques or other forms of information 
technology; and
    Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.
    The collections of information in these temporary regulations 
contain reporting and recordkeeping requirements. The recordkeeping 
requirements are considered general tax records under Section 1.6001-
1(e). These records are required for IRS to validate that taxpayers 
have met the regulatory requirements and are entitled to transfer the 
credits. For PRA purposes, general tax records are already approved by 
OMB under 1545-0047 for tax-exempt organizations and government 
entities; under 1545-0074 for individuals; and under 1545-0123 for 
business entities.
    These reporting requirements include a requirement to register with 
IRS to make the elective payment election or the transfer election in 
Sec. Sec.  1.48D-6T, 1.6417-5T, 1.6418-4T. This pre-filing registration 
requirement is being submitted to OMB and will be processed in 
accordance with the PRA as required by 5 CFR 1320.10. This collection 
of information is necessary to prevent duplication, fraud, improper 
payments, or excessive payments under sections 48D, 6417 and 6418 of 
the Code. The IRS is seeking a new OMB control number (1545-NEW) for 
the pre-registration requirements. The respondents are:
    (1) Under section 48D, taxpayers eligible to elect the elective 
payment election of the advanced manufacturing investment credit.
    Estimated total annual reporting burden is 271 hours.
    Estimated average annual burden per respondent is 5.41 hours.
    Estimated number of respondents is 50.
    (2) Under section 6417, tax-exempt organizations, State and local 
governments, Indian tribal governments, Alaska Native Corporations, the 
Tennessee Valley Authority, rural electric cooperatives, and certain 
taxpayers eligible to elect the elective payment of applicable credits 
in a taxable year.
    Estimated total annual reporting burden is 126,200 hours.
    Estimated average annual burden per respondent is 6.31 hours.
    Estimated number of respondents is 20,000.
    (3) Under section 6418, eligible taxpayers that elect to transfer 
eligible credits in a taxable year.
    Estimated total annual reporting burden is 308,000 hours.
    Estimated average annual burden per respondent is 6.16 hours.
    Estimated number of respondents is 50,000.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a valid 
control number assigned by the Office of Management and Budget. Books 
or records relating to a collection of information must be retained if 
their contents may become material in the administration of any 
internal revenue law. Generally, tax returns and tax return information 
are confidential, as required by section 6103. The IRS anticipates 
opening the electronic portal for pre-filing registration in Fall 2023, 
after approval of the collection of information under the Paperwork 
Reduction Act.

III. Regulatory Flexibility Act

    For applicability of the Regulatory Flexibility Act, please refer 
to the cross-reference notices of proposed rulemaking (REG-105595-23, 
REG-101607-23, and REG-101610-23) published elsewhere in this issue of 
the Federal Register.

IV. Section 7805(f)

    Pursuant to section 7805(f), these temporary regulations will be 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on their impact on small business.

V. Unfunded Mandates Reform Act

    Section 202 of the Unfunded Mandate Reform Act of 1995 requires 
that agencies assess anticipated costs and benefits and take certain 
other actions before issuing a final rule that includes any Federal 
mandate that may result in expenditures in any one year by a state, 
local, or tribal government, in the aggregate, or by the private 
sector, of $100 million in 1995 dollars (updated annually for 
inflation). These temporary regulations do not include any Federal 
mandate that may result in expenditures by state, local, or tribal 
governments, or by the private sector in excess of that threshold.

VI. Executive Order 13132: Federalism

    Executive Order 13132 (Federalism) prohibits an agency from 
publishing any rule that has federalism implications if the rule either 
imposes substantial, direct compliance costs on state and local 
governments, and is not required by statute, or preempts state law, 
unless the agency meets the consultation and funding requirements of 
section 6 of the Executive Order. These temporary regulations do not 
have federalism implications and do not impose substantial, direct 
compliance costs on state and local governments or preempt state law 
within the meaning of the Executive Order.

VII. Executive Order 12866

    Pursuant to the Memorandum of Agreement, Review of Treasury 
Regulations under Executive Order 12866 (June 9, 2023), tax regulatory 
actions issued by the IRS are not subject to the requirements of 
section 6 of Executive Order 12866, as amended. Therefore, a regulatory 
impact assessment is not required.

VIII. Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as a major rule as defined by 5 U.S.C. 804(2). For good cause pursuant 
to 5 U.S.C. 808(2), see part I of this Special Analyses section.

Drafting Information

    The principal author of this temporary regulation is Lani M. 
Sinfield, Office of the Associate Chief Counsel (Passthroughs and 
Special Industries), IRS. However, other personnel from the Treasury 
Department and the IRS participated in their development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Amendments to the Regulations

    Accordingly, the Treasury Department and the IRS amend 26 CFR part 
1 as follows:

PART 1--INCOME TAXES

0
Paragraph. 1. The authority citation for part 1 is amended by adding 
the following entries in numerical order to read in part as follows:

    Authority: 26 U.S.C. 7805 * * *
* * * * *

[[Page 40092]]

    Section 1.48D-6T also issued under 26 U.S.C. 48D(d)(2)(E) and 
(6) * * *
* * * * *
    Section 1.6417-5T also issued under 26 U.S.C. 6417(d)(5) and (h) 
* * *
    Section 1.6418-4T also issued under 26 U.S.C. 6418(g)(1) and (h) 
* * *
* * * * *

0
Par. 2. Section 1.48D-6T is added to read as follows:


Sec.  1.48D-6T   Elective payment election.

    (a) [Reserved]
    (b) Pre-filing registration required--(1) In general. Pre-filing 
registration by any taxpayer (including a partnership or an S 
corporation) in accordance with this paragraph (b) is a condition that 
must be successfully completed prior to making an elective payment 
election under section 48D(d)(1) and this section with respect to 
qualified property placed in service by the taxpayer as part of an 
advanced manufacturing facility of an eligible taxpayer. An elective 
payment election will not be effective with respect to the section 48D 
credit determined with respect to any such qualified property placed in 
service by any taxpayer unless the taxpayer received a valid 
registration number for the taxpayer's qualified investment in the 
advanced manufacturing facility of an eligible taxpayer in accordance 
with this paragraph (b) and provided the registration number for each 
qualified investment in each advanced manufacturing facility on its 
Form 3800, General Business Credit, attached to the tax return in 
accordance with guidance. For purposes of this section, 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 Sec. Sec.  601.601 and 601.602 of this chapter. However, completion 
of the pre-filing registration requirements and receipt of a 
registration number does not, by itself, mean the taxpayer is eligible 
to receive a payment with respect to any section 48D credit determined 
with respect to the qualified property.
    (2) Manner of registration. Unless otherwise provided in guidance, 
a taxpayer must complete the pre-filing registration process 
electronically through the IRS electronic portal and in accordance with 
the instructions provided therein.
    (3) Members of a consolidated group. A member of a consolidated 
group is required to complete pre-filing registration as a condition 
of, and prior to, making an elective payment election. See Sec.  
1.1502-77 (providing rules regarding the status of the common parent as 
agent for its members).
    (4) Timing of pre-filing registration. A taxpayer must satisfy the 
pre-filing registration requirements of this paragraph (b) and receive 
a registration number under paragraph (b)(6) of this section prior to 
making any elective payment election under this section on the 
taxpayer's tax return for the taxable year at issue.
    (5) Each qualified investment in an advanced manufacturing facility 
must have its own registration number. A taxpayer must obtain a 
registration number for each qualified investment in an advanced 
manufacturing facility of an eligible taxpayer with respect to which an 
elective payment election is made.
    (6) Information required to complete the pre-filing registration 
process. Unless modified in future guidance, a taxpayer must provide 
the following information to the IRS to complete the pre-filing 
registration process:
    (i) The taxpayer's general information, including its name, 
address, taxpayer identification number, and type of legal entity;
    (ii) Any additional information required by the IRS electronic 
portal;
    (iii) The taxpayer's taxable year, as determined under section 441 
of the Code;
    (iv) The type of annual return(s) normally filed by the taxpayer 
with the IRS;
    (v) A list of each qualified investment in an advanced 
manufacturing facility that the taxpayer intends to use to determine a 
section 48D credit for which the taxpayer intends to make an elective 
payment election;
    (vi) For each qualified investment in an advanced manufacturing 
facility listed in paragraph (b)(5)(v) of this section, any further 
information required by the IRS electronic portal, such as--
    (A) The type of qualified investment in the advanced manufacturing 
facility;
    (B) Physical location (that is, address and coordinates (longitude 
and latitude) of the advanced manufacturing facility);
    (C) Any supporting documentation relating to the construction, 
reconstruction or acquisition of the advanced manufacturing facility 
(such as, State and local government permits to operate the advanced 
manufacturing facility, certifications, and evidence of ownership that 
ties to the land deed, lease, or other documented right to use and 
access any land upon which the advanced manufacturing facility is 
constructed or housed);
    (D) The beginning of construction date and the placed in service 
date of any qualified property that is part of the advanced 
manufacturing facility;
    (E) The source of funds the taxpayer used to acquire the qualified 
property with respect to which the qualified investment was made; and
    (F) Any other information that the taxpayer or entity believes will 
help the IRS evaluate the registration request;
    (vii) The name of a contact person for the taxpayer. The contact 
person is the person whom the IRS may contact if there is an issue with 
the registration. The contact person must either possess legal 
authority to bind the taxpayer or must provide a properly executed 
power of attorney on Form 2848, Power of Attorney and Declaration of 
Representative;
    (viii) A penalties of perjury statement, effective for all 
information submitted as a complete application, and signed by a person 
with personal knowledge of the relevant facts that is authorized to 
bind the registrant; and
    (ix) Any other information the IRS deems necessary for purposes of 
preventing duplication, fraud, improper payments, or excessive payments 
under this section that is provided in guidance.
    (7) Registration number--(i) In general. The IRS will review the 
information provided and will issue a separate registration number for 
each qualified investment in an advanced manufacturing facility of an 
eligible taxpayer for which the taxpayer making the registration 
provided sufficient verifiable information.
    (ii) Registration number is only valid for one year. A registration 
number is valid only with respect to the taxpayer that obtained the 
registration number under this section and only for the taxable year 
for which it is obtained.
    (iii) Renewing registration numbers. If an elective payment 
election will be made with respect to any section 48D credit determined 
with respect to a qualified investment in an advanced manufacturing 
facility for a taxable year after a registration number under this 
section has been obtained, the taxpayer must renew the registration for 
that subsequent year in accordance with applicable guidance, including 
attesting that all the facts previously provided are still correct or 
updating any facts.
    (iv) Amendment of previously submitted registration information if 
a change occurs before the registration number is used. As provided in 
instructions to the pre-filing registration portal, if specified 
changes occur with respect to a qualified investment in an advanced 
manufacturing facility for which a registration number has been 
previously obtained, a taxpayer must

[[Page 40093]]

amend the registration (or may need to submit a new registration) to 
reflect these new facts. For example, if an eligible taxpayer that is 
the owner of an advanced manufacturing facility previously registered 
for an elective payment election for a section 48D credit determined 
with respect to that advanced manufacturing facility and the advanced 
manufacturing facility undergoes a change of ownership (incident to a 
corporate reorganization or an asset sale) such that the new owner has 
a different employer identification number (EIN) than the owner who 
obtained the original registration, the original owner of the advanced 
manufacturing facility must amend the original registration to 
disassociate its EIN from the advanced manufacturing facility and the 
new owner must submit separately an original registration (or if the 
new owner previously registered other qualified investments or advanced 
manufacturing facilities, must amend its original registration) to 
associate the new owner's EIN with the previously registered advanced 
manufacturing facility.
    (v) Registration number is required to be reported on the return 
for the taxable year of the elective payment election. The taxpayer 
must include the registration number of the qualified investment in the 
advanced manufacturing facility on the taxpayer's return as provided in 
paragraph (b) of this section for the taxable year. The IRS will treat 
an elective payment election as ineffective with respect to a section 
48D credit determined with respect to a qualified investment in an 
advanced manufacturing facility for which the taxpayer does not include 
a valid registration number on the annual return.
    (c)-(i) [Reserved]
    (j) Applicability date for pre-filing registration requirements. 
The requirements of paragraph (b) of this section apply to property 
placed in service on or after December 31, 2022, and during a taxable 
year ending on or after June 21, 2023.
    (k) Expiration date. The applicability of paragraph (b) of this 
section expires on June 12, 2026.

0
Par. 3. Section 1.6417-5T is added to read as follows:


Sec.  1.6417-5T   Additional information and registration.

    (a) Pre-filing registration and election. An applicable entity or 
electing taxpayer is required to satisfy the pre-filing registration 
requirements in paragraph (b) of this section as a condition of, and 
prior to, making an elective payment election. An applicable entity or 
electing taxpayer must use the pre-filing registration process to 
register itself as intending to make the elective payment election, to 
list all applicable credits it intends to claim, and to list each 
applicable credit property that contributed to the determination of 
such credits as part of the pre-filing submission (or amended 
submission). An applicable entity or electing taxpayer that does not 
obtain a registration number under paragraph (c)(1) of this section or 
report the registration number on its annual tax return, as defined in 
Sec.  1.6417-1(b), pursuant to paragraph (c)(5) of this section with 
respect to an otherwise applicable credit property, is ineligible to 
receive any elective payment amount with respect to the amount of any 
credit determined with respect to that applicable credit property. 
However, completion of the pre-filing registration requirements and 
receipt of a registration number does not, by itself, mean the 
applicable entity or electing taxpayer is eligible to receive a payment 
with respect to the applicable credits determined with respect to the 
applicable credit property.
    (b) Pre-filing registration requirements--(1) Manner of pre-filing 
registration. Unless otherwise provided in guidance, an applicable 
entity or electing taxpayer must complete the pre-filing registration 
process electronically through the IRS electronic portal and in 
accordance with the instructions provided therein.
    (2) Pre-filing registration and election for members of a 
consolidated group. A member of a consolidated group is required to 
complete pre-filing registration as a condition of, and prior to, 
making an elective payment election. See Sec.  1.1502-77 (providing 
rules regarding the status of the common parent as agent for its 
members).
    (3) Timing of pre-filing registration. An applicable entity or 
electing taxpayer must satisfy the pre-filing registration requirements 
of this paragraph (b) and receive a registration number under paragraph 
(c) of this section prior to making an elective payment election under 
Sec.  1.6417-2(b) on the applicable entity's or electing taxpayer's 
annual tax return for the taxable year at issue.
    (4) Each applicable credit property must have its own registration 
number. An applicable entity or electing taxpayer must obtain a 
registration number for each applicable credit property with respect to 
which it intends to make an elective payment election.
    (5) Information required to complete the pre-filing registration 
process. Unless modified in future guidance, an applicable entity or 
electing taxpayer must provide the following information to the IRS to 
complete the pre-filing registration process:
    (i) The applicable entity's or electing taxpayer's general 
information, including its name, address, taxpayer identification 
number, and type of legal entity.
    (ii) Any additional information required by the IRS electronic 
portal, such as information regarding the taxpayer's exempt status 
under section 501(a) of the Code; that the applicable entity is a 
political subdivision of a State, the District of Columbia, an Indian 
Tribal government, or a U.S territory; or that the applicable entity is 
an agency or instrumentality of a State, the District of Columbia, an 
Indian Tribal government, or a U.S. territory.
    (iii) The taxpayer's taxable year, as determined under section 441 
of the Code.
    (iv) The type of annual tax return(s) normally filed by the 
applicable entity or electing taxpayer, or that the applicable entity 
or electing taxpayer does not normally file an annual tax return with 
the IRS.
    (v) The type of applicable credit(s) for which the applicable 
entity or electing taxpayer intends to make an elective payment 
election.
    (vi) For each applicable credit, each applicable credit property 
that the applicable entity or electing taxpayer intends to use to 
determine the credit for which the applicable entity or electing 
taxpayer intends to make an elective payment election.
    (vii) For each applicable credit property listed in paragraph 
(b)(4)(vi) of this section, any further information required by the IRS 
electronic portal, such as--
    (A) The type of applicable credit property;
    (B) Physical location (that is, address and coordinates (longitude 
and latitude) of the applicable credit property);
    (C) Any supporting documentation relating to the construction or 
acquisition of the applicable credit property (such as State, District 
of Columbia, Indian Tribal, U.S. territorial, or local government 
permits to operate the applicable credit property; certifications; 
evidence of ownership that ties to a land deed, lease, or other 
documented right to use and access any land or facility upon which the 
applicable credit property is constructed or housed; U.S. Coast Guard 
registration numbers for offshore wind vessels; and the vehicle 
identification number of an

[[Page 40094]]

eligible clean vehicle with respect to which a section 45W credit is 
determined);
    (D) The beginning of construction date and the placed in service 
date of the applicable credit property;
    (E) If an investment-related credit property (as defined Sec.  
1.6417-2(c)(3)), the source of funds the taxpayer used to acquire the 
property; and
    (F) Any other information that the applicable entity or electing 
taxpayer believes will help the IRS evaluate the registration request.
    (viii) The name of a contact person for the applicable entity or 
electing taxpayer. The contact person is the person whom the IRS may 
contact if there is an issue with the registration. The contact person 
must either possess legal authority to bind the applicable entity or 
electing taxpayer or must provide a properly executed power of attorney 
on Form 2848, Power of Attorney and Declaration of Representative.
    (ix) A penalties of perjury statement, effective for all 
information submitted as a complete application, and signed by a person 
with personal knowledge of the relevant facts that is authorized to 
bind the registrant.
    (x) Any other information the IRS deems necessary for purposes of 
preventing duplication, fraud, improper payments, or excessive payments 
under this section that is provided in guidance.
    (c) Registration number--(1) In general. The IRS will review the 
information provided and will issue a separate registration number for 
each applicable credit property for which the applicable entity or 
electing taxpayer provided sufficient verifiable information.
    (2) Registration number is only valid for one taxable year. A 
registration number is valid only with respect to the applicable entity 
or electing taxpayer that obtained the registration number under this 
section and only for the taxable year for which it is obtained.
    (3) Renewing registration numbers. If an elective payment election 
will be made with respect to an applicable credit property for a 
taxable year after a registration number under this section has been 
obtained, the applicable entity or electing taxpayer must renew the 
registration for that subsequent taxable year in accordance with 
applicable guidance, including attesting that all the facts previously 
provided are still correct or updating any facts.
    (4) Amendment of previously submitted registration information if a 
change occurs before the registration number is used. As provided in 
instructions to the pre-filing registration portal, if specified 
changes occur with respect to one or more applicable credit properties 
for which a registration number has been previously obtained but not 
yet used, an applicable entity or electing taxpayer must amend the 
registration (or may need to submit a new registration) to reflect 
these new facts. For example, if the owner of a facility previously 
registered for an elective payment election for applicable credits 
determined with respect to that facility and the facility undergoes a 
change of ownership (incident to a corporate reorganization or an asset 
sale) such that the new owner has a different employer identification 
number (EIN) than the owner who obtained the original registration, the 
original owner of the facility must amend the original registration to 
disassociate its EIN from the applicable credit property and the new 
owner must submit separately an original registration (or if the new 
owner previously registered other credit properties, must amend its 
original registration) to associate the new owner's EIN with the 
previously registered applicable credit property.
    (5) Registration number is required to be reported on the return 
for the taxable year of the elective payment election. The applicable 
entity or electing taxpayer must include the registration number of the 
applicable credit property on its annual tax return as provided in 
Sec.  1.6417-2(b) for the taxable year. The IRS will treat an elective 
payment election as ineffective with respect to an applicable credit 
determined with respect to an applicable credit property for which the 
applicable entity or electing taxpayer does not include a valid 
registration number on the annual tax return.
    (d) Applicability date. This section applies to taxable years 
ending on or after June 21, 2023.
    (e) Expiration date. The applicability of this section expires on 
June 12, 2026.

0
Par. 4. Section 1.6418-4T is added to read as follows:


Sec.  1.6418-4T   Additional information and registration.

    (a) Pre-filing registration and election. As a condition of, and 
prior to, any specified credit portion being transferred by an eligible 
taxpayer to a transferee taxpayer pursuant to an election under Sec.  
1.6418-2, or a specified credit portion being transferred by a 
partnership or S corporation pursuant to Sec.  1.6418-3, the eligible 
taxpayer is required to satisfy the pre-filing registration 
requirements in paragraph (b) of this section. An eligible taxpayer 
that does not obtain a registration number under paragraph (c)(1) of 
this section, and report the registration number on its return pursuant 
to paragraph (c)(5) of this section, is ineligible to make a transfer 
election for a specified credit portion under Sec.  1.6418-2 or Sec.  
1.6418-3, with respect to the eligible credit determined with respect 
to the specific eligible credit property for which the eligible 
taxpayer has failed to obtain and report a registration number. 
However, completion of the pre-filing registration requirements and 
receipt of a registration number does not, by itself, mean the eligible 
taxpayer is eligible to transfer any specified credit portion 
determined with respect to the eligible credit property.
    (b) Pre-filing registration requirements--(1) Manner of pre-filing 
registration. Unless otherwise provided in guidance, eligible taxpayers 
must complete the pre-filing registration process electronically 
through an IRS electronic portal and in accordance with the 
instructions provided therein.
    (2) Pre-filing registration and election for members of a 
consolidated group. A member of a consolidated group is required to 
complete pre-filing registration to transfer any eligible credit 
determined with respect to the member. See Sec.  1.1502-77 (providing 
rules regarding the status of the common parent as agent for its 
members).
    (3) Timing of pre-filing registration. An eligible taxpayer must 
satisfy the pre-filing registration requirements of this paragraph (b) 
and receive a registration number under paragraph (c) of this section 
prior to making a transfer election under Sec.  1.6418-2 or Sec.  
1.6418-3 for a specified credit portion on the taxpayer's return for 
the taxable year at issue.
    (4) Each eligible credit property must have its own registration 
number. An eligible taxpayer must obtain a registration number for each 
eligible credit property with respect to which a transfer election of a 
specified credit portion is made.
    (5) Information required to complete the pre-filing registration 
process. Unless modified in future guidance, an eligible taxpayer is 
required to provide the following information to the IRS to complete 
the pre-filing registration process:
    (i) The eligible taxpayer's general information, including its 
name, address, taxpayer identification number, and type of legal 
entity;
    (ii) Any additional information required by the IRS electronic 
portal,

[[Page 40095]]

such as information establishing that the entity is an eligible 
taxpayer;
    (iii) The taxpayer's taxable year, as determined under section 441;
    (iv) The type of annual tax return(s) normally filed by the 
eligible taxpayer, or that the eligible taxpayer does not normally file 
an annual tax return with the IRS;
    (v) The type of eligible credit(s) for which the eligible taxpayer 
intends to make a transfer election;
    (vi) Each eligible credit property that the eligible taxpayer 
intends to use to determine a specified credit portion for which the 
eligible taxpayer intends to make a transfer election;
    (vii) For each eligible credit property listed in paragraph 
(b)(4)(vi) of this section, any further information required by the IRS 
electronic portal, such as--
    (A) The type of eligible credit property;
    (B) Physical location (that is, address and coordinates (longitude 
and latitude) of the eligible credit property);
    (C) Any supporting documentation relating to the construction or 
acquisition of the eligible credit property (such as State, Indian 
Tribal, or local government permits to operate the eligible credit 
property, certifications, evidence of ownership that ties to a land 
deed, lease, or other documented right to use and access any land or 
facility upon which the eligible credit property is constructed or 
housed, and U.S. Coast Guard registration numbers for offshore wind 
vessels);
    (D) The beginning of construction date, and the placed in service 
date of the eligible credit property; and
    (E) Any other information that the eligible taxpayer believes will 
help the IRS evaluate the registration request;
    (viii) The name of a contact person for the eligible taxpayer. The 
contact person is the person whom the IRS may contact if there is an 
issue with the registration. The contact person must either possess 
legal authority to bind the eligible taxpayer, or must provide a 
properly executed power of attorney on Form 2848, Power of Attorney and 
Declaration of Representative;
    (ix) A penalties of perjury statement, effective for all 
information submitted as a complete application, and signed by a person 
with personal knowledge of the relevant facts that is authorized to 
bind the registrant; and
    (x) Any other information the IRS deems necessary for purposes of 
preventing duplication, fraud, improper payments, or excessive payments 
under this section that is provided in guidance.
    (c) Registration number--(1) In general. The IRS will review the 
registration information provided and will issue a separate 
registration number for each eligible credit property for which the 
eligible taxpayer provided sufficient verifiable information.
    (2) Registration number is only valid for one taxable year. A 
registration number is valid to an eligible taxpayer only for the 
taxable year in which the credit is determined for the eligible credit 
property for which the registration is completed, and for a transferee 
taxpayer's taxable year in which the eligible credit is taken into 
account under Sec.  1.6418-2(f).
    (3) Renewing registration numbers. If an election to transfer an 
eligible credit will be made with respect to an eligible credit 
property for a taxable year after a registration number under this 
section has been obtained, the eligible taxpayer must renew the 
registration for that subsequent taxable year in accordance with 
applicable guidance, including attesting that all the facts previously 
provided are still correct or updating any facts.
    (4) Amendment of previously submitted registration information if a 
change occurs before the registration number is used. As provided in 
instructions to the pre-filing registration portal, if specified 
changes occur with respect to one or more applicable credit properties 
for which a registration number has been previously obtained but not 
yet used, an eligible taxpayer must amend the registration (or may need 
to submit a new registration) to reflect these new facts. For example, 
if the owner of a facility previously registered for a transfer 
election under Sec.  1.6418-2 or Sec.  1.6418-3 for eligible credits 
determined with respect to that facility and the facility undergoes a 
change of ownership (incident to a corporate reorganization or an asset 
sale) such that the new owner has a different employer identification 
number (EIN) than the owner who obtained the original registration, the 
original owner of the facility must amend the original registration to 
disassociate its EIN from the eligible credit property and the new 
owner must submit separately an original registration (or if the new 
owner previously registered other credit properties, must amend its 
original registration) to associate the new owner's EIN with the 
previously registered eligible credit property.
    (5) Reporting of registration number by an eligible taxpayer and a 
transferee taxpayer--(i) Eligible taxpayer reporting. As part of making 
a valid transfer election under Sec.  1.6418-2 or Sec.  1.6418-3, an 
eligible taxpayer must include the registration number of the eligible 
credit property on the eligible taxpayer's return (as provided in Sec.  
1.6418-2(b) or Sec.  1.6418-3(d)) for the taxable year the specified 
credit portion was determined. The IRS will treat an election as 
ineffective if the eligible taxpayer does not include a valid 
registration number on the return.
    (ii) Transferee taxpayer reporting. A transferee taxpayer must 
report the registration number received (as part of the transfer 
election statement as described in Sec.  1.6418-2(b) or otherwise) from 
a transferor taxpayer on the Form 3800, General Business Credit, as 
part of the return for the taxable year that the transferee taxpayer 
takes the transferred specified credit portion into account. The 
specified credit portion will be disallowed to the transferee taxpayer 
if the transferee taxpayer does not include the registration number on 
the return.
    (d) Applicability date. This section applies to taxable years 
ending on or after June 21, 2023.
    (e) Expiration date. The applicability of this section expires on 
June 12, 2026.

Douglas W. O'Donnell,
Deputy Commissioner for Services and Enforcement.
    Approved: June 5, 2023.
Lily Batchelder,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2023-12797 Filed 6-14-23; 11:15 am]
BILLING CODE 4830-01-P