Instructions 7211 Clean Electricity Production Credit

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Instructions for Form 7211
(December 2024)

Clean Electricity Production Credit
Section references are to the Internal Revenue Code
unless otherwise noted.

• You are a cooperative and the source credit can or must
be allocated to patrons. For more details, see the
Instructions for Form 1120-C, Schedule J, line 5c.

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Future Developments

For the latest information about developments related to
Form 7211 and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form7211.

What’s New

A qualified facility will not include any facility for
which a credit determined under section 45, 45J,
CAUTION 45Q, 45U, 48, 48A, or 48E is allowed under
section 38 for the tax year or any prior tax year.

!

How To Claim the Credit

Tax-exempt and governmental entities. Applicable
entities (such as certain tax-exempt and governmental
entities) can elect to treat the clean hydrogen production
credit as a payment of income tax. See Applicable
entities, later.

To qualify for the credit, the electricity must be produced
within either the United States (as defined in section
638(1), or a territory of the United States (as defined in
section 638(2) for its consumption, sales, or storage
during the tax year. Additionally, eligible electricity is
electricity that is either: (1) sold by the taxpayer to an
unrelated person during the tax year, or (2) in the case of
a qualified facility that is equipped with a metering device,
owned and operated by an unrelated person.

Credit transfers. Eligible taxpayers, partnerships, and S
corporations can elect to transfer all or part of the credit
amount otherwise allowed as a general business credit to
an unrelated third-party buyer in exchange for cash.
Eligible taxpayers don't include applicable entities. See
Credit transfers, later.

Generally, the credit for clean electricity produced at a
qualified facility during the 10-year period beginning on
the date the facility was originally placed in service and
sold to you by an unrelated person during the tax year is
the applicable amount (base amount or alternative
amount) used in calculating the credit.

Pre-filing registration. The IRS has established a
pre-filing registration process that must be completed prior
to electing payment or transfer of the clean electricity
production credit. See Pre-filing registration requirement
for payments or transfers, later.

Amount of Credit

New Form 7211. Beginning in 2025, new Form 7211,
Clean Electricity Production Credit, will be used to claim
the section 45Y clean electricity production credit.

General Instructions
Purpose of Form

Use Form 7211 to claim the clean electricity production
credit that you produced at each qualified facility.
Complete Part I to report the information on the qualified
facility. The credit is allowed only for the consumption,
sale, or storage of electricity produced in the United
States or U.S. territories at a qualified facility. Complete
Part II to calculate the credit.
Taxpayers, applicable entities, partnerships, S
corporations, estates, or trusts that own and operate a
qualified facility must file a separate Form 7211. All others
are generally not required to complete or file this form if
their only source for any section 45Y clean electricity
production credit is a partnership, S corporation, estate, or
trust. Instead, they can report this credit directly on Form
3800, General Business Credit. The following exceptions
apply.

• You are an estate or trust and the source of the credit

can be allocated to beneficiaries. For more details, see the
Instructions for Form 1041, Schedule K-1, box 13, code E.
Nov 18, 2024

The clean electricity production credit for any tax year is
an amount equal to the product of kilowatt hours (kWh) of
eligible electricity produced by the taxpayer at a qualified
facility, multiplied by the applicable amount with respect to
the qualified facility.

Applicable Amount
Base amount. For any qualified facility that does not
satisfy the requirements for the alternative amount, the
applicable amount will be 0.3 cents.
Alternative amount. The 1.5 cents applies in the case of
any facility (1) with a maximum net output of less than 1
megawatt (as measured in alternating current); (2) the
construction of which begins prior to August 26, 2024; or
(3) that satisfies the wage requirements, and that, with
respect to the construction of the facility, satisfies the
apprenticeship requirements.

Definitions
CO2e per kWh. The term “CO2e per kWh” means, with
respect to any greenhouse gas, the equivalent carbon
dioxide (as determined based on global warning potential)
per kilowatt hour of electricity produced.
Greenhouse gas. The term “greenhouse gas” has the
same meaning given to the term under section 211(o)(1)
(G) of the Clean Air Act (42 U.S.C. 7545(o)(1)(G)).

Instructions for Form 7211 (12-2024) Catalog Number 94878U
Department of the Treasury Internal Revenue Service www.irs.gov

Greenhouse gas emissions rate. Generally, the
amount of greenhouse gases emitted into the atmosphere
by a facility in the production of electricity, expressed as
grams of CO2e per kWh.
Qualified facility. A facility owned by the taxpayer that is
used for the generation of electricity, that is placed in
service after 2024, and for which the greenhouse gas
emissions rate (as determined under section 45Y(b)(1)
(A)) is not greater than zero. The facility will be treated as
a qualified facility during the 10-year period beginning on
the date the facility was originally placed in service.

Also see Registering for and Making EPEs and Transfer
Elections in the Instructions for Form 3800.

Credit Reduced for Tax-Exempt
Bonds

The credit rate reduction for grants, subsidized energy
financing, and other credits was modified. As a result, the
credit is reduced by an amount which is the product of the
credit amount otherwise determined for the tax year and
the lesser of 15% or a fraction. The numerator of the
fraction is the sum, for the tax year and all prior tax years,
of proceeds of an issue of any obligations the interest on
which is exempt from tax under section 103 and that is
used to provide financing for the qualified facility, as of the
close of the tax year. The denominator of the fraction is
the aggregate amount of additions to the capital account
for the qualified facility for the tax year and all prior tax
years as of the close of the tax year.

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Qualified carbon dioxide. Means carbon dioxide
captured from an industrial source which:
• Would otherwise be released into the atmosphere as
industrial emission of greenhouse gas,
• Is measured at the source of capture and verified at the
point of disposal or utilization, and
• Is captured and disposed or utilized within the United
States or a territory.

Applicable entities. Applicable entities (as defined
under section 6417(d)(1)(A)) that generally don't benefit
from income tax credits can elect to treat the clean
electricity production credit for a facility originally placed in
service after December 31, 2022, as a payment of income
tax. Resulting overpayments may result in refunds.
Applicable entities making the elective payment
election for the clean electricity production credit must file
the following.
• Form 7211 and any applicable attachments;
• Form 3800, General Business Credit; and
• Form 990-T, Exempt Organization Business Income Tax
Return, or other applicable income tax return.
For a discussion of what is an applicable entity, see
Applicable entity making an EPE on IRA 2022 credits in
the Instructions for Form 3800. For more information on
elective payment elections under section 6417, see
Elective Payment of Certain Business Credits Under
Section 6417 or Section 48D in the Instructions for Form
3800.
Your election to treat the credit as a payment generally
applies to 2025 and any subsequent year during the
10-year period described in section 45Y(b)(1)(B) for such
facility. You must obtain an IRS-issued registration number
for the facility in 2025 and each of the succeeding years.

Credit transfers. Under section 6418, eligible taxpayers,
partnerships, and S corporations can elect to transfer all
or part of the credit figured in Part II to an unrelated
third-party buyer in exchange for cash. For more
information on credit transfers, see Transfer of Eligible
Credits Under Section 6418 in the Instructions for Form
3800.
Pre-filing registration requirement for payments or
transfers. Before you file your tax return, if you intend to
make an elective payment election or transfer election on
Form 3800 for the credit figured in Part II, you must
complete a pre-filing registration for each facility. To
register, go to IRS.gov/Credits-Deductions/Register-forElective-Payment-or-Transfer-of-Credits. See Pub. 5884,
Inflation Reduction Act (IRA) and CHIPS Act of 2022
(CHIPS) Pre-filing Registration Tool, for more information.
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Increased Credit in Energy
Communities

In the case of any qualified facility which is located in an
energy community, the amount of credit with respect to
any electricity produced by the taxpayer at such facility is
increased by 10%. Energy community means (a) a
brownfield site; (b) a metropolitan or non-metropolitan
statistical area that has or had at any time during the
period beginning in 2010, 0.17% or more direct
employment or 25% or greater local tax revenues related
to the extraction, processing, transport, or storage of coal,
oil, or natural gas, and has an unemployment rate at or
above the national average unemployment rate for the
previous year; or (c) a census tract in which after
December 31, 1999, a coal mine has closed, or after
December 31, 2009, a coal-fired electric generating unit
has been retired, or a census tract directly adjoining to any
such census tract.
See Notice 2023-29, available at IRS.gov/irb/
2023-29_IRB#NOT-2023-29; Notice 2023-45, available at
IRS.gov/irb/2023-45_IRB#NOT-2023-45; and Notice
2023-47, available at IRS.gov/irb/
2023-47_IRB#NOT-2023-47, for more information about
the energy community bonus credit guidance under
section 45.

Domestic Content Bonus Credit
Amount

An additional bonus credit equal to 10% of the amount is
provided for projects that meet a domestic content
requirement. The domestic content bonus requires that
certain steel, iron, and manufactured products used in the
facility be domestically produced. The taxpayer needs to
certify that any steel, iron, or manufactured product that is
a component of the qualified facility (upon completion of
construction) was produced in the United States (as
determined under section 661 of Title 49, CFR).

Instructions for Form 7211 (12-2024)

Prevailing Wage and Apprenticeship
Requirements
Prevailing Wage Requirements

To meet the prevailing wage requirements with respect to
any qualified facility, a taxpayer must ensure that any
laborers and mechanics employed by the taxpayer or any
contractor or subcontractor in:
• The construction of such facility, and
• The alteration or repair of such facility (with respect to
any tax year, for any portion of such tax year that is within
the 10-year period beginning on the date the qualified
facility is originally placed in service), are paid wages at
rates not less than the prevailing rates. Special correction
and penalty mechanisms apply for a taxpayer’s failure to
satisfy the prevailing wage requirements.

Line 3

Enter the date construction began.

Line 7

Check the appropriate box on line 7 and attach the
required information to your return to claim the credit at
the alternative amount. You must attach a separate
statement for each qualified facility. See TD9998 for
additional guidance.

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Apprenticeship Requirements

The apprenticeship requirements include three
components: a labor-hours requirement, a ratio
requirement, and a participation requirement.
• The taxpayer must ensure that, depending on when
construction began, 10% to 15% of the total labor hours
performed in the construction, alteration, or repair of the
facility are performed by qualified apprentices from a
registered apprenticeship program.
• The taxpayer must ensure that the applicable ratio of
apprentices to journeyworkers established by the
registered apprenticeship program are met for apprentices
working on the facility each day.
• Any taxpayer (or contractor or subcontractor) that
employs 4 or more individuals in the construction,
alteration, or repair of the facility must also hire at least
one qualified apprentice.

Specific Instructions
Part I—Information on Qualified
Facility

If you are claiming the clean electricity production credit
for a qualified facility, you must complete Part I,
Information on Qualified Facility. Use lines 1 through 9 to
provide information for each facility.

Line 1

Enter your pre-filing registration number of the facility that
you received from the IRS. See Pre-filing registration
requirement for payments or transfers, earlier.

Line 2a

If the owner of the facility is different from the filer, include
the owner’s name and taxpayer identification number.

Lines 2b and 2c

Enter the address and the technical description of the
facility that is an integral part of the facility to produce
clean electricity. If the facility does not have an address,
enter the coordinates of the facility (longitude and latitude)
on line 2c.

Instructions for Form 7211 (12-2024)

Additional information to claim the alternative
amount. If you checked the “Yes” box in Part I, question
7a, 7b, or 7c, and entered an alternative amount on Part II,
line 2, you must also attach a statement to Form 7211 that
includes the following information.
1. Your name and taxpayer identification number and
the facility description (including owner information, if
different from filer) and the IRS-issued registration number
(if applicable) from Part I.
2. If you checked box 7a, a statement that the facility
or property has a maximum net output of less than 1
megawatt (as measured in alternating current).
3. If you checked box 7b, a statement that you
establish the beginning of construction (alteration or
repairs) before January 29, 2023.
4. If you checked box 7c, include the following.
a. The location and type of the qualified facility.
b. The applicable wage determinations (as defined
below) for each classification of laborer and mechanic
who performed work on the construction, alteration, or
repair of the facility.
c. The wages paid (including any correction payments
as defined in section 45(b)(7)(B)(i)(I)) and hours worked
for each of the laborer or mechanic classifications
engaged in the construction, alteration, or repair of the
facility.
d. The number of laborers and mechanics who
received correction payments as the result of any failure to
pay the applicable prevailing wage rates.
e. The amount of penalty payments owed with respect
to any failures to pay the applicable prevailing wage rates.
f. The wages paid and hours worked by qualified
apprentices for each of the laborer or mechanic
classifications engaged in the construction of the facility.
g. The total labor hours for the construction of the
project by any laborer or mechanic employed by the
taxpayer or any contractor or subcontractor.
h. The amount of hours for which you claim to have
satisfied the apprenticeship requirements under the
good-faith effort exception.
i. The amount of penalty payments owed with respect
to any failure to meet the labor-hours requirement or the
participation requirement.
Applicable wage determinations. Applicable wage
determinations are the wages listed for a particular
classification of laborer or mechanic for the type of
construction and the geographic area, or other applicable
wage as determined by the Secretary of Labor. See

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Notice 2022-61, available at IRS.gov/irb/
2022-52_IRB#NOT-2022-61, for more information.

Line 8

Section 45Y(g)(7) provides an energy community bonus
credit amount for a qualified facility by increasing the
amount by 10% if the qualified facility is located in an
energy community. Check “Yes” if you satisfy the section
45Y(g)(7) requirements. See Increased Credit in Energy
Communities, earlier.

1. Your name and taxpayer identification number
shown on the return.
2. The facility description (including owner information,
if different from filer) and the IRS-issued registration
number (if applicable) of the applicable project from Part I.
3. A statement that any steel, iron, or manufactured
product that is a component of the facility (upon
completion of construction) was produced in the United
States (as determined under section 661 of Title 49, Code
of Federal Regulations).
4. A declaration, applicable to the statement and any
accompanying documents, signed by you, or signed by a
person currently authorized to bind you in such matters, in
the following form: “Under penalties of perjury I declare
that I have examined the information contained in this
Domestic Content Certification Statement and to the best
of my knowledge and belief, it is true, correct, and
complete.”

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Additional information for increased credit amount. If
you checked the “Yes” box in Part I, question 8, and
entered an increased credit amount on Part II, line 5a, you
must also attach a statement to Form 7211 that includes
the following information.
1. Your name and taxpayer identification number and
the facility description (including owner information, if
different from filer) and the IRS-issued registration number
(if applicable) from Part I.
2. If you checked box 8, include the following.
a. The location and type of the qualified facility.
b. The applicable wage determinations (as defined
below) for each classification of laborer and mechanic
who performed work on the construction, alteration, or
repair of the facility.
c. The wages paid (including any correction payments
as defined in section 45(b)(7)(B)(i)(I)) and hours worked
for each of the laborer or mechanic classifications
engaged in the construction, alteration, or repair of the
facility.
d. The number of laborers and mechanics who
received correction payments as the result of any failure to
pay the applicable prevailing wage rates.
e. The amount of penalty payments owed with respect
to any failures to pay the applicable prevailing wage rates.
f. The wages paid and hours worked by qualified
apprentices for each of the laborer or mechanic
classifications engaged in the construction of the facility.
g. The total labor hours for the construction of the
project by any laborer or mechanic employed by the
taxpayer or any contractor or subcontractor.
h. The amount of hours for which you claim to have
satisfied the apprenticeship requirements under the
good-faith effort exception.
i. The amount of penalty payments owed with respect
to any failure to meet the labor-hours requirement or the
participation requirement.

Line 9

Check the appropriate box on line 9.

Domestic Content Certification Statement
If you checked line 9 to claim the domestic content bonus
credit amount in Part I, you must also attach a domestic
content certification statement to Form 7211 at the time of
filing your return for each applicable project. The domestic
content certification statement should include the
following.
4

See Domestic Content Bonus Credit Amount and
Notice 2023-38, available at IRS.gov/irb/
2023-22_IRB#NOT-2023-38, for guidance with respect to
the domestic content requirement.

Part II—Clean Electricity Production

Line 1or Line 2

Enter the kilowatt hours of qualified clean electricity
produced at the applicable qualified facilities and multiply
by the applicable rate. Enter the calendar year related to
the kWh on line 1 or line 2.
In column (b), enter the base or alternative amount
multiplied by the applicable amount and rounded for the
calendar year entered on line 1 or line 2. Multiply column
(a) by column (b). Enter the result in column (c).

Skip lines 1 through 9 if you are only claiming a credit
that was allocated to you from an S corporation,
partnership, cooperative, estate, or trust.

Line 3

Enter the total amount of lines 1(c) and 2(c). A qualified
facility can use the “base amount” or “alternative amount,”
not both.

Line 5a

Energy community bonus. If you checked line 8 in Part I,
multiply the amount on Part II, line 5a, by 10% (0.10). See
Increased Credit in Energy Communities, earlier.

Line 9
Elective payment phaseout for applicable entities. If
you are making an elective payment election for a facility
whose construction began in calendar year 2024, and the
facility does not satisfy the rules of section 45Y(g)(12)(B)
(i) or does not have a maximum net output of less than 1
megawatt (as measured in alternating current), multiply
line 9 by 90% (0.90).
Exception to elective payment phaseout. For
facilities whose construction begins before the later of
calendar year 2024 or further guidance, Notice 2024-XX
provides transitional procedures to claim the statutory
Instructions for Form 7211 (12-2024)

exceptions to the elective payment phaseout related to the
domestic content requirement.
To substantiate your claim of exception to the elective
payment phaseout, you must complete and attach a
statement to Form 7211. The statement must say, under
penalties of perjury, that you have reviewed the
requirements for the increased cost exception and the
non-availability exception under section 45Y(g)(12)(D),
and have made a good-faith determination that the
qualified facility meets the requirements for the increased
cost exception and/or the non-availability exception, as
applicable. The statement must be signed by a person
with the legal authority to bind the applicable entity in
federal tax matters. For more information, see Notice
2024-09, 2024-02 I.R.B. 358.

source credit to beneficiaries and cooperatives that can
allocate the credit to patrons must always report on line 10
the above credits related to clean electricity production. All
other filers figuring a separate credit on earlier lines must
also report the above credits on line 10. All others not
using earlier lines to figure a separate credit can report the
above credits directly on Form 3800, Part III, line gg.

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Line 10

On a separate Form 7211, enter “Credits from
Pass-Through Entities” on line 2b of Part I and report your
total distributive share from:
• Schedule K-1 (Form 1065), Partner’s Share of Income,
Deductions, Credits, etc., box 15 (code W);
• Schedule K-1 (Form 1120-S), Shareholder’s Share of
Income, Deductions, Credits, etc., box 13 (code W);
• Schedule K-1 (Form 1041), Beneficiary’s Share of
Income, Deductions, Credits, etc., box 13 (code E); and
• Form 1099-PATR, Taxable Distributions Received From
Cooperatives, box 12.

Partnerships and S corporations must enter the
passed-through credits on line 10. Also, estates and trusts
that can allocate the source credit to beneficiaries, and
cooperatives that can allocate the credit to patrons, must
enter the passed-through credits on line 10. Filers figuring
credits on earlier lines of Form 7211 must enter the
passed-through credits on line 10.

If you are not a filer described above, and your only
clean electricity production credit are credits passed
through to you, you can report the credits directly on Form
3800, Part III, line gg, as applicable.
Partnerships and S corporations must always report on
line 10 the above credits related to clean electricity
production. Also, estates and trusts that can allocate the

Instructions for Form 7211 (12-2024)

Line 11

Partnerships and S corporations. If you are a
partnership or S corporation electing to transfer the
energy credit with respect to a facility or property (or
portion thereof) under section 6418(c), you must report
the total credit amount with respect to your facility on Form
3800, Part III, line gg, and not on Schedule K.

Line 12

Cooperative election to allocate credit to patrons. A
cooperative described in section 1381(a) that is more than
50% owned by agricultural producers or by entities owned
by agricultural producers can elect to allocate any part of
the credit among the patrons of the cooperative. The
credit is allocated among the patrons eligible to share in
patronage dividends on the basis of the quantity or value
of business done with or for such patrons for the tax year.
The cooperative is deemed to have made the election
by completing line 12, as applicable. However, the
election isn't effective unless (a) made on a timely filed
return (including extensions), and (b) the organization
designates the apportionment in a written notice mailed to
its patrons during the payment period described in section
1382(d) or on Form 1099-PATR.
If you timely file your return without making an election,
you can still make the election by filing an amended return
within 6 months of the due date of the return (excluding
extensions). Enter “Filed pursuant to section 301.9100-2”
on the amended return.
Once made, the election can’t be revoked.
Estates and trusts. Allocate the credit on line 11
between the estate or trust and the beneficiaries in the
same proportion as income was allocated and enter the
beneficiaries’ share on line 12.

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The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden
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Instructions for Form 7211 (12-2024)