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In short (60 seconds)

• Transferability (IRC §6418) lets certain taxpayers transfer (sell) eligible clean energy/manufacturing tax credits to an unrelated taxpayer for cash.
• The buyer (transferee) then claims the transferred credit on its federal income tax return (subject to the rules).
• Only a specific list of credits is transferable — there are 11 “eligible credits”.
• The seller generally must complete IRS pre-filing registration and obtain a registration number for each eligible credit property before the transfer election is effective.
• If the transferred credit amount is later determined to be overstated, rules can impose tax consequences on the transferee (buyer) (high level).

Pick your path (best next click)

• How It Works — the process, cash rule, timing, and key constraints.
• Eligible Credits — the 11 transferable credits + links to each credit page.
• Registration Filing — pre-filing registration, registration numbers, election timing.
• Risk & Compliance — due diligence, excessive transfer concept, recapture basics.
• Glossary — definitions and FAQs.
• Updates — site changelog + official guidance links.

Choose your role (fast)

• I’m buying credits: start with Risk & Compliance, then open the credit page you’re buying.
• I’m selling credits: start with Registration Filing, then open the credit page you’re selling.
• I’m new: start with How It Works, then Eligible Credits.

Three non-negotiables (high level)

• Unrelated buyer: the transferee must be unrelated.
• Cash consideration: transfers are structured around cash consideration (high level).
• One transfer: transferred credits are not generally re-transferred by the buyer under §6418 rules (high level).

For the full process explanation in plain English, go to How It Works.

Why transferability matters

Many clean energy credits are valuable but historically required the project owner to have enough tax liability or use specialized financing. Transferability created a more direct path to monetize eligible credits by selling them to taxpayers that can use them (high level).

Plain-English distinction

• Transferability (§6418): eligible taxpayers sell eligible credits to unrelated buyers for cash.
• Elective pay (§6417): certain entities (and certain electing taxpayers for specific credits) treat the credit as a tax payment and may receive a refund.

Both paths generally involve pre-filing registration and registration numbers. See Registration Filing.

Tip: if you’re unsure, do this

1. Open How It Works to understand the mechanics.
2. Open Registration Filing to understand what makes an election effective.
3. Open Risk & Compliance to understand buyer/seller risk.

Quick index (the 11 credit pages)

• Section 30C — alternative fuel vehicle refueling/recharging property.
• Section 45 — renewable electricity production (PTC).
• Section 45Q — carbon oxide sequestration.
• Section 45U — zero-emission nuclear production.
• Section 45V — clean hydrogen production.
• Section 45X — advanced manufacturing production.
• Section 45Y — clean electricity production.
• Section 45Z — clean fuel production.
• Section 48 — energy investment (ITC).
• Section 48C — qualifying advanced energy project (allocation program).
• Section 48E — clean electricity investment (tech-neutral ITC).

Common confusion: §45 vs §45Y and §48 vs §48E are often “pre‑2025 vs post‑2024” frameworks. If unsure, open both pages and check placed‑in‑service timing and definitions.

High-level steps (seller + buyer)

1. Identify the credit and confirm it’s one of the 11 eligible credits.
2. Pre-filing registration: seller registers each eligible credit property and obtains registration number(s).
3. Negotiate terms: price, indemnity, documentation package, and timing.
4. Cash consideration: ensure payment is structured as cash consideration (high level).
5. File and elect: seller makes the transfer election on its return and includes required registration number(s).
6. Buyer claims: buyer claims the transferred credit on its return, subject to applicable rules and limitations.

The 3 risk buckets (simple)

• Eligibility risk: the project/property does not qualify for the claimed credit.
• Computation risk: the amount is wrong (production, basis, rate, or “adder” support).
• Filing/election risk: registration numbers or elections are missing/incorrect (transfer can fail for that property).

Read next: Risk & Compliance.