republic-os/legal/us/code/title-26/chapter-68/section-6695b.md

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LegalText	26 U.S.C. § 6695B	Penalty for substantial misstatements on certification provided by supplier	us	united_states_code	code_section	26	INTERNAL REVENUE CODE	68	ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES	6695B	26 U.S.C. § 6695B	current	119-100	2026-06-26	official	https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip	/us/usc/t26/s6695B	data/legal/raw/us/code/title-26/usc26.xml	f6569ff9ebb2b5a88d8dcf097bb8d7b89fba13706a22bad6e3f9bea84dfa4017	a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4	4053e45d45f7778363b115d8141a75c616cfb768cd5c267f4aa7ab70ad4d64b3	2026-07-04	official	legal us-code

26 U.S.C. § 6695B - Penalty for substantial misstatements on certification provided by supplier

Text

(a) Imposition of penalty If—

(1) a person—

(A) provides a certification described in clause (iii)(II)(bb) of section 7701(a)(52)(D) with respect to any manufactured product, eligible component, or constituent element, material, or subcomponent of an eligible component, and

(B) knows, or reasonably should have known, that the certification would be used in connection with a determination under such section,

(2) such person knows, or reasonably should have known, that such certification is inaccurate or false with respect to—

(A) whether such property was produced or manufactured by a prohibited foreign entity, or

(B) the total direct costs or total direct material costs of such property that was not produced or manufactured by a prohibited foreign entity that were provided on such certification, and

(3) the inaccuracy or falsity described in paragraph (2) resulted in the disallowance of an applicable energy credit (as defined in section 6662(m)(2)) and an understatement of income tax (within the meaning of section 6662(d)(2)) for the taxable year in an amount which exceeds the lesser of—

(A) 5 percent of the tax required to be shown on the return for the taxable year, or

(B) $100,000,

then such person shall pay a penalty in the amount determined under subsection (b).

(b) Amount of penalty The amount of the penalty imposed under subsection (a) on any person with respect to a certification shall be equal to the greater of—

(1) 10 percent of the amount of the underpayment (as defined in section 6664(a)) solely attributable to the inaccuracy or falsity described in subsection (a)(2), or

(2) $5,000.

(c) Exception No penalty shall be imposed under subsection (a) if the person establishes to the satisfaction of the Secretary that any inaccuracy or falsity described in subsection (a)(2) is due to a reasonable cause and not willful neglect.

(d) Definitions Any term used in this section which is also used in section 7701(a)(52) shall have the meaning given such term in such section.

(Added Pub. L. 119–21, title VII, § 70512(k)(1), July 4, 2025, 139 Stat. 268.)

Notes

Statutory Notes and Related Subsidiaries

Effective DateSection applicable to certifications provided after Dec. 31, 2025, see section 70512(l)(3) of Pub. L. 119–21, set out in an Effective Date of 2025 Amendment note under section 45 of this title.