Treasury Floats Allowing Individuals to Buy Energy Tax Credits

The Treasury Department is considering allowing individuals to buy clean energy tax credits from companies, an official said Monday.

Companies can now sell their energy tax credits to a third party one time, after passage of the Inflation Reduction Act last year. That market, which is just starting to take shape, largely excludes individuals—a restriction that some tax professionals say should change so more money would flow to companies.

“It is definitely being looked at hard because it was a difficult one, for sure,” Sarah Haradon, attorney-adviser at Treasury’s Office of Tax Policy, said at a virtual conference ...