Which Tax Credits Are Transferable Under Section 6418?

Published October 29, 2026. Only the credits listed in IRC §6418(f)(1)(A) can be sold to an unrelated buyer for cash. There are twelve. Several of them changed under the One Big Beautiful Bill Act (P.L. 119-21), so check the status before you plan a purchase.

The twelve eligible credits

Code section	Credit	2026 status to check
§30C	Alternative fuel vehicle refueling property	Does not apply to property placed in service after June 30, 2026 (§30C(i)).
§45	Renewable electricity production (PTC)	Election is made facility by facility for each year of a 10-year period from placed-in-service (§6418(f)(1)(B)). Crux describes legacy §45 credits from projects that began construction before 2025 as exempt from the new foreign-entity rules.
§45Q	Carbon oxide sequestration	Election window is 12 years from when the capture equipment was placed in service (§6418(f)(1)(B)).
§45U	Zero-emission nuclear power production	Does not apply to taxable years beginning after December 31, 2032 (§45U(e)).
§45V	Clean hydrogen production	The facility's construction must begin before January 1, 2028 (§45V(c)(3)).
§45X	Advanced manufacturing production	Phases out for components sold after 2029; wind components end after 2027. See the 45X buyer guide.
§45Y	Clean electricity production (technology-neutral PTC)	Wind and solar facilities placed in service after December 31, 2027 are cut off, with a beginning-of-construction exception (see below).
§45Z	Clean fuel production	Does not apply to fuel sold after December 31, 2029 (§45Z(g)).
§48	Energy credit (legacy ITC)	Investment credit property: basis reduction and recapture rules apply (§6418(g)(3)).
§48C	Qualifying advanced energy project	Investment credit property: same recapture rules as §48.
§48E	Clean electricity investment (technology-neutral ITC)	Same wind and solar cutoff as §45Y (§48E(e)(4)). Recapture rules apply.
§40A(b)(4)	Small agri-biodiesel producer credit	Only this part of the §40A biodiesel credit is eligible.

Clauses (iii), (iv), (vi), (vii), (viii) and (xi) of §6418(f)(1)(A), which are §§45Q, 45U, 45X, 45Y, 45Z and 48E, carry an extra rule: the seller may not transfer them to a buyer that is a "specified foreign entity" (§6418(g)(5)). See foreign-entity risk for buyers.

What is not transferable

• Credits not on the list. That includes the research credit (§41), the low-income housing credit (§42), the historic rehabilitation credit (§47) and the individual home energy credits. They cannot be sold under §6418. Some states run their own transfer programs; those are separate from federal law.
• Carryforwards and carrybacks. "Eligible credit" excludes any business credit carryforward or carryback under §39 (§6418(f)(1)(C)). Only the credit determined for the year can be sold.
• A second sale. A buyer cannot resell the credit; the regulations apply a "no additional transfer" rule (Treas. Reg. §1.6418-2(c)(2)).

Wind and solar: the July 4, 2026 line

Under the OBBBA, wind and solar facilities that did not begin construction on or before July 4, 2026 must be placed in service by December 31, 2027 to keep §45Y or §48E credits (Nixon Peabody summary). Treasury Notice 2025-42 had removed the five percent safe harbor for most larger projects; a federal district court vacated that notice on June 6, 2026. Law-firm summaries report that the government did not appeal by the August 5, 2026 deadline, so the earlier safe harbor is again available, though Treasury could still issue new guidance (Clifford Chance). A buyer should therefore ask the seller how construction began and what evidence supports it. Our OBBBA changes page has more.

What this means for a buyer

A credit being on the list does not mean it is allowed. The seller must have determined it, the project or component must qualify, and for most credits you need a registration number. Walk through the diligence guide, the §6418 overview and how buying works. Note that you pay cash, the price is not deductible and the discount is not income to you (§6418(b); Treas. Reg. §1.6418-2(f)(2)).

Educational information only, not tax, legal or investment advice, and no outcome is promised. Figures and rules were checked against the cited sources on November 2, 2026; confirm with your CPA and counsel before acting. See our disclaimer.