IRS News Release: Final, Proposed Partnership Clean Energy Rules Released (IRC §761)

Final rules that will help certain entities that co-own clean energy projects access clean energy tax credits through elective pay (i.e., direct pay) and proposed rules that would provide additional administrative requirements for unincorporated organizations that opt out of partnership treatment under the modified rules, the IRS announced. Prior to the Inflation Reduction Act, entities now eligible for elective pay could not benefit from clean energy tax credits because they had little or no federal tax liability. Elective pay enables eligible entities and organizations access to the full value of clean energy incentives by making certain clean energy credits refundable. ...