July 26 -- The Internal Revenue Service (IRS) invites comment to OMB by August 30, 2023 regarding the proposed revised Form 7207 to claim the advanced manufacturing production credit under section 45X for eligible components produced by the taxpayer and sold during the tax year in the taxpayer's trade or business to an unrelated person. IRS is revising the form and instructions to include Inflation Reduction Act of 2022 provisions for Tax Year 2024.
The Inflation Reduction Act of 2022 (P.L. 117-169) created new section 45X, Advanced Manufacturing Production Credit to authorize a credit for eligible components produced and sold after 2022. Section 45X provide that, for purposes of the general business credit under section 38 of the Code, the advanced manufacturing production credit for any taxable year is an amount equal to the sum of the credit amounts determined under § 45X(b) with respect to each eligible component (as defined in § 45X(c)) produced by the taxpayer and sold by such taxpayer to an unrelated person, but only if such production and sale is in a trade or business of the taxpayer. In addition, under section 45X(a)(3)(B), a taxpayer may make an election in the form and manner prescribed by the Secretary of the Treasury or her delegate to treat a sale of components by such taxpayer to a related person as made to an unrelated person. The Advanced Manufacturing Production Credit is claimed on IRS Form 7207.
IRS is submitting this request as a renewal and revision for the Form 7207. IRS has made the following revisions to the form:
-- Checkbox attestation to indicate if eligible components include property produced at a facility that claimed a 48C credit.
-- Changing column header to Eligible Component.
-- Updated Line 2a text to “Related offshore wind vessel”
-- Updated Line 6a text to “Applicable critical minerals”
-- Updating rates based on Inflation Reduction Act changes.
In response to the 60-day comment notice posted on May 1, IRS received questions and comments from GreenLi-ion Recycling Technology and Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC). The two sets of comments and the IRS responses can be found at https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=202305-1545-013
For IRS responses, see Supporting Statement A section 8 (pp. 2-6).
DOE: Federal Tax Credits for Solar Manufacturers https://www.energy.gov/eere/solar/federal-tax-credits-solar-manufacturers
IRA Advanced Manufacturing Product Credit – A cheat sheet https://www.bricker.com/insights-resources/publications/inflation-reduction-act-ira-advanced-manufacturing-product-credit-a-cheat-sheet
Proposed revised Form 7207: https://www.reginfo.gov/public/do/PRAViewIC?ref_nbr=202305-1545-013&icID=257641
About Form 7207, Advanced Manufacturing Production Credit: https://www.irs.gov/forms-pubs/about-form-7207
IRS submission to OMB: https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202305-1545-013
Click IC List for information collection instrument, View Supporting Statement for technical documentation. Submit comments through this webpage.
For AEA members wishing to submit comments, "A Primer on How to Respond to Calls for Comment on Federal Data Collections" is available at https://www.aeaweb.org/content/file?id=5806