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.
To access Form 7218 in the individual tax return in TaxSlayer ProWeb, from the Federal Section of the tax return (Form 1040) select:
- Deductions
- Credits
- Less Common Credits
- Clean Fuel Production Credit - Complete the form. If the credit is from a passthrough entity reported on Schedule K-1, you don't need to complete the form in its entirety but you'll need a copy of Form 7218 that the entity filed so that you can enter the facility information in Part I, After finishing with Part I and selecting Continue, you'll be able to select Credits from Pass-Through Entities to enter the information about the entity and the amount of the credit.
Additional Information: