Multiple Direct Pay Elections Not Intent of Tax Credit, Economist Says

Multiple direct pay elections for the new advanced manufacturing production credit were not the intent of the statute, a Joint Committee on Taxation economist said Wednesday at a District of Columbia Bar conference.

Taxpayers that are not tax-exempt entities can elect for direct pay for five years for three tax credits—45Q, 45V, and 45X—in the tax-and-climate law.

For the carbon oxide sequestration tax credit under Section 45Q and clean hydrogen production tax credit under Section 45V, the direct pay election is made when a qualified facility is placed in service. However, tax professionals said the statute ...