Td 9975

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Country

Entity

License review
policy

License requirement

Federal Register
Citation

—AviChina Harbin Bearing
No. 888 Nanjing Road, Hulan District,
Harbin (New District Trust Handling
Area), China; and No. 81, East
Wujinnan Road, Xilong Street, Harbin,
China; and North Side of Traffic Management Office, Linxi County, Xingtai
City, Hebei Province, China.
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Matthew S. Borman,
Deputy Assistant Secretary for Export
Administration.
[FR Doc. 2023–13196 Filed 6–16–23; 8:45 am]
BILLING CODE 3510–33–P

Correction

CONSUMER PRODUCT SAFETY
COMMISSION

In FR Rule Doc. No. 2023–09999
appearing on page 30226 in the Federal
Register of Thursday, May 11, 2023, the
following correction is made

16 CFR Part 1272
[Docket No. CPSC–2023–0021]

§ 1272.5

Marking of Toy, Look-Alike, and
Imitation Firearms; Correction

1. On page 30229, in the third column,
correct ‘‘§ 272.5 Preemption’’ to read
‘‘§ 1272.5 Preemption’’.

The Federal Energy
Management Improvement Act Update
transferred authority for regulating the
marking of toy, look-alike, and imitation
firearms from the Department of
Commerce to the Consumer Product
Safety Commission. On May 11, 2023,
the Commission issued a direct final
rule to adopt the Department of
Commerce rule for the marking of toy,
look-alike, and imitation firearms, with
non-substantive and conforming
changes. That document contained a
typographical error. This document
corrects that error.
DATES: Effective June 26, 2023.
FOR FURTHER INFORMATION CONTACT:
Salman Sarwar, Compliance Officer,
U.S. Consumer Product Safety
Commission, 4330 East West Highway,
Bethesda, MD 20814; telephone: (301)
504–7682; email: [email protected].
SUPPLEMENTARY INFORMATION: The
Commission is correcting a
typographical error in the direct final
rule, Marking of Toy, Look-Alike, and
Imitation Firearm, 16 CFR part 1272,
which appeared in the Federal Register
on May 11, 2023. 88 FR 30226. This
document corrects a typographical error
in the numbering of § 1272.5 of the
direct final rule. The codified text
numbered § 1272.5 (Preemption) was

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[Corrected]

■

Consumer Product Safety
Commission.
ACTION: Direct final rule; correction.
AGENCY:

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erroneously numbered as § 272.5. This
document corrects that error by
changing the number for the preemption
section of the rule from § 272.5 to
§ 1272.5. This document corrects a
typographical error; it does not make
any substantive changes to the direct
final rule.

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SUMMARY:

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Alberta Mills,
Secretary, U.S. Consumer Product Safety
Commission.
[FR Doc. 2023–13137 Filed 6–20–23; 8:45 am]
BILLING CODE 6355–01–P

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

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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 taxexempt 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 §§ 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

AGENCY:

I. Overview

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

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

Internal Revenue Service (IRS),
Treasury.
ACTION: Temporary regulations.
SUMMARY:

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Federal Register / Vol. 88, No. 118 / Wednesday, June 21, 2023 / Rules and Regulations
rulemaking that contain proposed
regulations under §§ 1.48D–6, 1.6417–5,
and 1.6418–4, the text of which is
identical to the text of §§ 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

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I. Pre-Filing Registration Requirements
Under Section 48D(d)
Temp. Reg. § 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 § 1.48D–6(a)(1), or an
amount paid to a partnership or S
corporation pursuant to § 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 prefiling 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

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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. § 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. § 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. § 1.48D–
6T(b)(7)(iii) provides that, if an elective

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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. § 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. § 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.
§ 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

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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. § 1.6417–5T provides the
mandatory pre-filing registration
process. Temp. Reg. § 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. § 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

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provided therein, unless otherwise
provided in guidance. If the election is
by a member of a consolidated group,
the member must complete the prefiling registration process as a condition
of, and prior to, making an elective
payment election. See § 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. § 1.6417–5T(c) provides
information about the required
registration number. Temp. Reg.
§ 1.6417–5T(c)(1) provides that, after an
applicable entity or electing taxpayer
completes the pre-filing registration
process as provided in proposed
§ 1.6417–5(b) for the applicable credit
properties with respect to which the

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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. § 1.6417–5T(c)(2) provides
that a registration number is valid only
for the taxable year for which it is
obtained. Temp. Reg. § 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
§ 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.
§ 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. § 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

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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. § 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.
§ 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.
§ 1.6418–4T(b). After the required prefiling 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

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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. § 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 § 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.

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

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Special Analyses

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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 preregistration 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.
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
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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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 preregistration 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 preregister 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

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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 prefiling 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:

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Federal Register / Vol. 88, No. 118 / Wednesday, June 21, 2023 / Rules and Regulations
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 §§ 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 preregistration 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

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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 crossreference 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

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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
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 * * *

*

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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) * * *

*

*
*
*
*
Par. 2. Section 1.48D–6T is added to
read as follows:

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§ 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 §§ 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 § 1.1502–77 (providing rules

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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

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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

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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.
■ Par. 3. Section 1.6417–5T is added to
read as follows:
§ 1.6417–5T Additional information and
registration.

(a) Pre-filing registration and election.
An applicable entity or electing
taxpayer is required to satisfy the prefiling registration requirements in
paragraph (b) of this section as a
condition of, and prior to, making an

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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 § 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 § 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 § 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.

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(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

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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 § 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

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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
§ 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.
■ Par. 4. Section 1.6418–4T is added to
read as follows:
§ 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 § 1.6418–2, or a specified
credit portion being transferred by a
partnership or S corporation pursuant to
§ 1.6418–3, the eligible taxpayer is
required to satisfy the pre-filing
registration requirements in paragraph
(b) of this section. An eligible taxpayer

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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
§ 1.6418–2 or § 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 § 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 § 1.6418–2 or § 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,

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Federal Register / Vol. 88, No. 118 / Wednesday, June 21, 2023 / Rules and Regulations
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.

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(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 § 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
§ 1.6418–2 or § 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 § 1.6418–2 or

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40095

§ 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
§ 1.6418–2(b) or § 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 § 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

DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 587
Publication of Russian Harmful
Foreign Activities Sanctions
Regulations Web General License 69
Office of Foreign Assets
Control, Treasury.
ACTION: Publication of a Web General
License.
AGENCY:

The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is publishing one
general license (GL) issued pursuant to
the Russian Harmful Foreign Activities
Sanctions Regulations: GL 69, which
was previously made available on
OFAC’s website.
DATES: GL 69 was issued on May 31,
2023. See SUPPLEMENTARY INFORMATION
for additional relevant dates.
FOR FURTHER INFORMATION CONTACT:
OFAC: Assistant Director for Licensing,
SUMMARY:

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