TaxCreditTransfer
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IRC §6418 · Plain-English guide

Tax Credit Transferability

Clear, plain-English guidance on US tax credit transferability (IRC §6418). Start with the essentials, then follow step-by-step pages on registration, filing, eligible credits, and risk. Educational only — not tax advice.
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How a §6418 credit transfer works

The path from holding a clean-energy credit to a buyer using it — at a glance.

1
You hold a credit
An eligible taxpayer earns a transferable clean-energy credit under §6418.
2
Register with the IRS
Pre-file through IRS Energy Credits Online and get a registration number for each credit property.
3
Find a buyer
An unrelated company agrees to pay cash for the credit, or a portion of it.
4
Diligence & documents
Both sides run due diligence (including FEOC checks) and sign a Transfer Election Statement.
5
Make the election
The seller reports the transfer on its original federal return, citing the registration number.
6
Buyer claims it
The buyer offsets its federal tax. The cash isn’t income to the seller or deductible by the buyer.

Simplified overview of the §6418 transfer mechanism — not every deal step, and rules in this area are changing. Educational only; see How It Works and confirm specifics with a qualified professional.

Start with these hubs

Pick a path based on what you need today. Each hub links to detailed guides and checklists.

Start Here
What transferability means, who can transfer, and what credits qualify.
Beginner
How It Works
Cash payment rule, partial transfers, timing, and key deal steps.
Process
Eligible Credits
A plain-English page for each clean-energy credit currently eligible for §6418 transfer.
Reference
Registration & Filing
Pre-filing registration, registration numbers, elections, and reporting.
IRS Steps
Risk & Compliance
Due diligence, excessive transfer risk, and recapture basics (high-level).
Risk
Glossary
Definitions and FAQs for the most-used transferability terms.
FAQ
Updates
What changed, what we updated, and where to find official guidance.
Fresh
Editorial Policy
How we write, cite sources, and keep pages current (YMYL standards).
Trust

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Educational introductions only — not tax, legal, or financial advice. We don’t vet, endorse, or guarantee any party or deal.

What this is: independent, plain-English education on §6418 credit transfers, built on primary IRS and Treasury sources. What it isn’t: tax, legal, or financial advice, or a recommendation about any specific deal or counterparty. For your situation, work with a qualified professional. See our full disclaimer.