Form 7218 is used to claim the section 45Z credit for the production of qualified clean fuel produced and sold after 2024.
The taxpayer must be registered as a producer of clean fuel under section 4101 at the time of production to
claim the credit. The 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 by the taxpayer to an unrelated person to be used in a trade or business, resold for use, or used in the production of a fuel mixture.
The entity that owns and operates a qualified facility files Form 7218 to claim the credit, and a separate form is filed for each qualified facility. A taxpayer receiving this credit from a pass-through entity doesn't need to file Form 7218 but reports it directly on Form 3800, General Business Credit. An estate or trust receiving this credit passes it through to the beneficiary(ies) on Schedule K-1 in the same proportion as income was allocated.
See the form instructions for details on how to complete Form 7218.
Individual income tax return
To access Form 7218 in the individual tax return in TaxSlayer Pro, from the Main Menu of the tax return (Form 1040) select:
- Credits
- General Business Credit
- Current Year General Business Credit
- Form 7218 - If the credit was received from a pass-through entity on Schedule K-1, select Credits from Pass Thru Entities.
Corporation Income Tax Return (Form 1120)
To access Form 7218 in the corporation income tax return in TaxSlayer Pro, from the Main Menu of the return (Form 1120) select:
- Tax and Payments
- Total Payments and refundable credits
- Elective Payment Election Amount (Form 3800)
- Current Year General Business Credits
- Form 7218 - If the credit was received from a pass-through entity on Schedule K-1, select Credits from Pass Thru Entities.
S Corporation Income Tax Return (Form 1120-S) and Return of Partnership Income (Form 1065)
To access Form 7218 in the S corporation or partnership income tax returns in TaxSlayer Pro, from the Main Menu of the return (Form 1120-S or Form 1065) select:
- Schedule K - Distributive Share Items
- Credits
- General Business Credits
- Current Year General Business Credits
- Form 7218 - If the credit was received from a pass-through entity on Schedule K-1, select Credits from Pass Thru Entities.
Income Tax Return for Estates and Trusts (Form 1041)
To access Form 7218 in the estate or trust income tax return in TaxSlayer Pro, from the Main Menu of the return (Form 1041) select:
- Schedule K-1
- Schedule K-1 Input - Select the beneficiary.
- Allocable Share Items
- Credits and Credit Recapture
- 13L - Clean Fuel Production Credit - Enter the amount received from the pass-through entity allocable to the beneficiary.
Additional Information: