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Form 7218: Clean Fuel Production Credit
IRS Form 7218 is used to claim the section 45Z credit for clean fuel production by a taxpayer. If fuel was produced and sold in calendar year 2025, the applicable amount before inflation ranges from $0.20 to $1.75 per gallon.
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IRS Form 7218 - Clean Fuel Production Credit
IRS Form 7218 is used to claim the section 45Z credit for clean fuel production by a taxpayer. If fuel was produced and sold in calendar year 2025, the applicable amount before inflation ranges from $0.20 to $1.75 per gallon.
Risk Radar
Scan points- 1Ensure the clean fuel was sold to an unrelated person for a use described in section 45Z(a)(4).
- 2Failing to complete pre-filing registration before electing payment or transfer of credit.
- 3Not entering 'Credits from Pass-Through Entities' on line 2a of Part I when applicable.
- 4Incorrectly reporting the total distributive share in Part II, line 1 if not a filer described above.
- 5Omitting the facility coordinates (Latitude/Longitude) in Part I.
Plain English
This form allows taxpayers to claim tax credits based on the clean fuel they produce and sell. The credit applies if the fuel is transportation fuel made in the U.S. by the taxpayer at a qualified facility after 2024. Taxpayers use this form to report how much of that credit they are claiming.
Submission Date
- Filing date: 2025-12-31 10:33:25
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- Use this form when claiming the section 45Z credit for clean fuel production that was produced and sold after 2024.
- Do not use Form 7218 when the eligible taxpayer is an applicable entity electing to treat the credit as a payment of income tax, unless filing concurrently with Forms 3800 or 990-T/other return.
- Check Form 7220 instead when claiming the increased clean fuel production credit amount because the facility meets prevailing wage and apprenticeship requirements.
Form selector
Use this form or another form?
Electing to pay the credit as income tax
This is required for applicable entities making an elective payment election for the clean fuel production credit.
✓ Confirm you are also filing Form 990-T or other applicable return.
Transferring all or part of the credit
Eligible taxpayers can elect to transfer this credit amount to an unrelated third-party in exchange for cash under section 6418.
✓ Ensure the election is made on timely filed Form 3800.
Making a provisional emissions rate claim
A taxpayer may request an emissions value from the Department of Energy and use it to file a petition with the Secretary of the Treasury (PER).
✓ Verify if your fuel's emissions rate has not been determined by the IRS/Treasury.
Not stated in the official source
Filing as an Estate or Trust
The credit must be allocated on line 3 between the estate or trust and its beneficiaries in proportion to income allocation, with the share entered on line 4.
✓ Review instructions regarding how income was allocated for accurate distribution.
Not stated in the official source
Deadline or filing window
The form claims credits for fuel produced and sold after 2024. For fuel produced and sold during calendar year 2025, the applicable amount is calculated based on whether PWA requirements are met. The source does not state a specific filing deadline date but covers production/sale periods.
Checklist
What you need before filling it out
Purpose of Form
Claiming section 45Z credit for qualified clean fuel produced and sold after 2024 · Instructions p.1
Eligibility Requirement
Fuel must be transportation fuel, produced in the U.S. (including territories), by taxpayer at a qualified facility after 2024, and sold to an unrelated person for a use described in section 45Z(a)(4) during the tax year · Instructions p.1
Applicable Entity Election
Form 3800, Form 990-T, or other applicable return · Instructions p.2
Pre-filing Registration
IRS-issued registration number for the facility · Instructions p.3 / Form p.1 (Line 1)
Credit Transfer Election
Elect to transfer all or part of the clean fuel production credit amount to an unrelated third-party in exchange for cash under section 6418 · Instructions p.2
Estate/Trust Allocation
Proportionally allocate credit on Line 3 and enter beneficiaries’ share on Line 4 · Instructions p.5
Before you submit
- 1Ensure the facility qualifies under section 45Z(d)(4) by reviewing instructions.
- 2Confirm that if making an elective payment or transfer election, you have entered the IRS-issued registration number on Line 1.
- 3Verify that the description of the facility on Line 2a is accurate and matches the production site.
- 4If the owner differs from the filer, confirm both the owner’s name and TIN are correctly listed on Line 2b.
- 5Check if the clean fuel was produced and sold after 2024 to qualify for this credit.
- 6Confirm that you have not already taken credits for this facility related to section 45V, section 46, or section 45Q.
- 7If an applicable entity, confirm that Form 3800 (and Form 990-T if applicable) is attached.
How to file this form
- 1Complete the required pre-filing registration for each qualified facility before filing your tax return.
- 2Fill out Form 7218 by entering the necessary information, including the IRS-issued registration number on Line 1 and facility details on Line 2.
- 3If applicable, complete Form 3800 to document the elective payment or transfer election for the clean fuel production credit.
- 4Attach Form 7218 to your main tax return (or amended return) and file it with the Internal Revenue Service.
Known limitations
- 1Specified foreign entities (as defined in section 7701(a)(51)(B)) cannot claim the credit for tax years beginning after July 4, 2025.
- 2Applicable entities must file Form 7218 along with Form 3800, General Business Credit, and either Form 990-T or another applicable income tax return when making an elective payment election.
- 3If a taxpayer is not one of the filer types described, but only receives credit(s) passed through to them, they report the credit(s) directly on Form 3800, Part III, line 1q.
Field map
Compact field-by-field guide
General Info
2 items
Full legal name and taxpayer identification number (SSN or EIN).
Current mailing address.
Details
2 items
Complete all applicable sections of this form according to the official IRS instructions.
Enter the relevant dollar amount if this form involves tax calculation.
Certification
1 items
Read and acknowledge any certifications required by this form.
Signatures
1 items
Sign and date. Unsigned forms cannot be processed.
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Fillable formOpen in Editor->The current edition is the December 2024 revision, though instructions reference a future December 2025 revision. For the latest information regarding Form 7218 and its instructions, filers should consult IRS.gov/Form7218.
What changed or needs a fresh check
- Edition date — confirm the revision reads December 2024.
- IRS-issued registration number — confirm this is entered if making an elective payment or transfer election (Line 1).
- Facility description — confirm the description on Line 2a matches the facility being claimed.
- Owner's TIN — confirm the Taxpayer Identification Number of the owner is correctly listed on Line 2b, if different from the filer.
- Credit restriction check — confirm the facility has not taken credits related to section 45V, section 46 (attributable to a section 48(a)(15) election), or section 45Q.
Quick Facts
Downloads
After you file
- 1Keep a copy of the filed IRS Form 7218.
- 2If electing to transfer the clean fuel production credit under section 6418, the taxpayer can elect to transfer all or part of the amount to an unrelated third-party in exchange for cash.
- 3If filing as a partnership or S corporation and transferring the credit under section 6418(c), report the total credit amount on Form 3800, Part III, line 1q (not Schedule K).
- 4For estates or trusts subject to passive activity rules, complete Form 8582-CR, Passive Activity Credit Limitations, to determine the allowed credit allocation for beneficiaries.
Sources
- SRCInstructions p.1 — Use Form 7218 to claim the section 45Z credit for the production of qualified clean fuel produced and sold after 2024.
- SRCInstructions p.1 — Clean fuel must be transportation fuel produced in the United States (including U.S. territories) by the taxpayer at a qualified facility after 2024, and sold to an unrelated person for a use described in section 45Z(a)(4) during the tax year.
- SRCInstructions p.1 — The taxpayer must be registered as a producer of clean fuel under section 4101 at the time of production to claim the credit.
- SRCInstructions p.2 — Applicable entities making the elective payment election for the clean fuel production credit must file Form 7218, Form 3800, General Business Credit, and Form 990-T, Exempt Organization Business Income Tax Return, or other applicable income tax return.
- SRCInstructions p.3 — Before filing a tax return, if intending to make an elective payment election or transfer election on Form 3800 for the clean fuel production credit, pre-filing registration must be completed for each qualified facility.
- SRCInstructions p.5 — If receiving a Schedule K-1 (Form 1065), box 15, code BC, this is related to Transferees of Eligible Credits Under Section 6418 in the Instructions for Form 3800.
Common confusion points
Who must file Form 7218?
Eligible taxpayers must use Form 7218 to claim the section 45Z credit.
When is the clean fuel production credit applicable?
The clean fuel must be produced and sold after 2024 during the tax year.
What is the pre-filing registration requirement?
If intending to make an elective payment or transfer election, a pre-filing registration must be completed for each qualified facility before filing the tax return.
Does every eligible taxpayer have to file Form 7218?
Applicable entities must file it when making an elective payment election; other eligible taxpayers use it to claim the credit.
What if I receive a K-1 with code BC?
If receiving a Schedule K-1 (Form 1065), box 15, code BC, this relates to Transferees of Eligible Credits Under Section 6418 in the Instructions for Form 3800.
What do I fill out if my fuel is SAF?
In Part III, Column (a) of Form 7218, enter the type of fuel and specify if it is non-SAF or SAF.
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Form 7220 must be filed separately if the taxpayer produced clean fuel at a qualified facility and claims the increased credit amount for meeting prevailing wage and apprenticeship requirements.
Questions about IRS Form 7218
What is IRS Form 7218 used for?
This form allows taxpayers to claim tax credits based on the clean fuel they produce and sell. The credit applies if the fuel is transportation fuel made in the U.S. by the taxpayer at a qualified facility after 2024. Taxpayers use this form to report how much of that credit they are claiming.
Who must file IRS Form 7218?
Eligible taxpayers must file Form 7218, which includes applicable entities and electing taxpayers. Partnerships and S corporations that elect to transfer the clean fuel production credit also must file it.
What information does IRS Form 7218 require?
Part I collects facility details like the producer registration number and dates of construction/service. Part II reports the actual Clean Aviation and Non-Aviation Transportation Fuel Production Credit, while Part III is used for reporting credits passed through from other entities.
When is IRS Form 7218 due?
The form must be filed to claim the section 45Z credit for qualified clean fuel produced and sold after 2024. The applicable amount changes based on the calendar year of production (e.g., 2025).
How do I complete IRS Form 7218?
First, complete Part I with facility data. Next, report the credit amount in Part II (or Part III if passed through). Finally, ensure that for all lines entered, Column (h) is calculated by multiplying Column (e) x Column (f) x Column (g), and this total is placed on Part II, line 1.
What happens if IRS Form 7218 is filed incorrectly?
The IRS requires taxpayers to obtain this information; failure to do so means the taxpayer must carry out the Internal Revenue laws of the United States using Form 7218.
Who must file Form 7218?
Eligible taxpayers must use Form 7218 to claim the section 45Z credit.
When is the clean fuel production credit applicable?
The clean fuel must be produced and sold after 2024 during the tax year.
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