Par. 7. Section 1.6418-2 is amended by revising paragraphs (d)(1) and (g) to read as follows:
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(d) Determining the eligible credit —(1) In general. An eligible taxpayer may only transfer eligible credits determined with respect to the eligible taxpayer (paragraph (a)(4) of this section disallows transfer elections in other situations). An eligible credit is determined with respect to an eligible taxpayer if the eligible taxpayer owns the underlying eligible credit property and conducts the activities giving rise to the credit or, if ownership is not required to give rise to the eligible credit, such as a credit under section 45Z or section 45(d)(3)(C), the eligible taxpayer must conduct the activities giving rise to the credit. In the case of section 45X (under which ownership of eligible credit property is also not required, but for which rules related to contract manufacturing arrangements may be applicable), the eligible taxpayer must be considered (under the section 45X regulations) the taxpayer with respect to which the section 45X credit is determined. All rules that relate to the determination of the eligible credit, such as the rules in sections 49 and 50(b) of the Code, apply to the eligible taxpayer and therefore can limit the amount of eligible credit determined with respect to an eligible credit property that can be transferred. Rules relating to the amount of an eligible credit that is allowed to be claimed by an eligible taxpayer, such as the rules in section 38(c) or section 469 of the Code, do not limit the eligible credit determined, but do apply to a transferee taxpayer as described in paragraph (f)(3) of this section.
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(g) Applicability dates —(1) In general. Except as otherwise provided in this paragraph (g), this section applies to taxable years ending on or after April 30, 2024. For taxable years ending before April 30, 2024, taxpayers, however, may choose to apply the rules of this section and §§ 1.6418-1, 1.6418-3, and 1.6418-5, provided the taxpayers apply the rules in their entirety and in a consistent manner.
(2) Paragraph (d)(1). Paragraph (d)(1) of this section applies to taxable years ending on or after [date of publication of final regulations in the Federal Register ]. For taxable years ending before [date of publication of final regulations in the Federal Register ], see § 1.6418-2(d)(1) as contained in 26 CFR part 1, revised April 1, 2025.