Direct Pay and Credit Transfer Proposed and Temporary Regulations

The Inflation Reduction Act provided energy project owners and sponsors with two new ways to monetize energy tax credits generated by their projects: direct pay (§6417) and transferability (§6418).

The Direct Pay and Credit Transfer Proposed and Temporary Regulations Roadmap highlights the key takeaways from the proposed and temporary regulations issued by the Treasury and IRS to taxpayers seeking to make a direct pay election or transfer election.

This roadmap offers clarity in how to follow the proposed regulations consistently, including:

• How to make a direct pay election (“elective payment election”)
• Tax treatment of elective payments
• Excessive payments
• Requirements for a valid transfer election
• Special rules for partnerships and S corporations
• Registration, notification, and additional information
• And more.

Download your complimentary copy now.