applicable entity

(1) Applicable entity (A) In general The term “applicable entity” means— (i) any organization exempt from the tax imposed by subtitle A, (ii) any State or political subdivision thereof, (iii) the Tennessee Valley Authority, (iv) an Indian tribal government (as defined in section 30D(g)(9) ), (v) any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602(m) ), or (vi) any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas. (B) Election with respect to credit for production of clean hydrogen If a taxpayer other than an entity described in subparagraph (A) makes an election under this subparagraph with respect to any taxable year in which such taxpayer has placed in service a qualified clean hydrogen production facility (as defined in section 45V(c)(3) ), such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year, but only with respect to the credit described in subsection (b)(5). (C) Election with respect to credit for carbon oxide sequestration If a taxpayer other than an entity described in subparagraph (A) makes an election under this subparagraph with respect to any taxable year in which such taxpayer has, after December 31, 2022 , placed in service carbon capture equipment at a qualified facility (as defined in section 45Q(d) ), such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year, but only with respect to the credit described in subsection (b)(3). (D) Election with respect to advanced manufacturing production credit (i) In general If a taxpayer other than an entity described in subparagraph (A) makes an election under this subparagraph with respect to any taxable year in which such taxpayer has, after December 31, 2022 , produced eligible components (as defined in section 45X(c)(1) ), such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year, but only with respect to the credit described in subsection (b)(7). (ii) Limitation (I) In general Except as provided in subclause (II), if a taxpayer makes an election under this subparagraph with respect to any taxable year, such taxpayer shall be treated as having made such election for each of the 4 succeeding taxable years ending before January 1, 2033 . (II) Exception A taxpayer may elect to revoke the application of the election made under this subparagraph to any taxable year described in subclause (I). Any such election, if made, shall apply to the applicable year specified in such election and each subsequent taxable year within the period described in subclause (I). Any election under this subclause may not be subsequently revoked. (iii) Prohibition on transfer For any taxable year described in clause (ii)(I), no election may be made by the taxpayer under section 6418(a) for such taxable year with respect to eligible components for purposes of the credit described in subsection (b)(7). (E) Other rules (i) In general An election made under subparagraph (B), (C), or (D) shall be made at such time and in such manner as the Secretary may provide. (ii) Limitation No election may be made under subparagraph (B), (C), or (D) with respect to any taxable year beginning after December 31, 2032 .

Source

26 USC § 6417(d)(1)


Scoping language

for purposes of this section
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