IRS News Release: Proposed Guidance, FAQs on Elective Payment Elections, Transfers of Credits for Tax-Exempt Entities

The IRS June 14 issued proposed regulations, and Frequently Asked Questions, describing the rules for tax-exempt entities that earn certain clean energy credits and choose to make an elective payment election, and the rules for taxpayers that elect to transfer certain credits to unrelated parties. For tax years after Dec. 31, 2022, tax-exempt entities can choose to make an elective payment election for certain credits. All other taxpayers may elect to be treated as an applicable entity for a limited number of credits. Eligible taxpayers that are not treated as tax-exempt entities can make an election to transfer an eligible ...