Treasury Proposes Rules on Monetizing Energy Tax Credits (2)

The IRS and Treasury Department proposed rules Wednesday for taxpayers looking to monetize clean energy tax credits in President Joe Biden’s tax-and-climate law.

The Inflation Reduction Act outlined alternatives for taxpayers who want to buy or sell their energy tax credits instead of using tax equity investment structures. The law allows tax-exempt and government entities to receive a refundable payment in lieu of the credit.

The new rules (RIN 1545-BQ63 and RIN 1545-BQ64) further define how the registration process works and who is eligible for the monetization options.

These methods will “dramatically speed deployment, bring ...