Internal Revenue Code · 26 U.S.C.

§ 6695B. Penalty for substantial misstatements on certification provided by supplier

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).

Cite as 26 U.S.C. § 6695B

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status: In force
Added: July 4, 2025 by Pub. L. 119–21
Length: 4 subsections · 346 words · about 2 min to read
Cross-references: cites 3; cited by 1 Code section and 0 other regulations

¶(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.)

Cross-references

Computed from the citations in the text of Title 26 and 26 CFR.

This section cites 3 other sections

Cited by 1 Code section

§ 6696(a) Rules applicable with respect to sections 6694, 6695, 6695A, and 6695B

Amendment history

From the source credit and the official notes, newest first.

July 4, 2025Added by Pub. L. 119–21

Where it sits in the Code

Nearby sections

Official notes

Show the Law Revision Counsel's notes (amendments, effective dates)

Effective Date

Section 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.