Expanding Clean Energy Tax Credits: New Guidance and Opportunities.
The US Treasury Department and the IRS have released guidance on the Inflation Reduction Act's provisions to expand the reach of clean energy tax credits, including elective pay and transferability, to state, local, and tribal governments, non-profits, US territories, and rural energy co-ops. The new credit delivery mechanisms will enable more entities to take advantage of clean energy tax credits, creating good-paying jobs, lowering energy costs, and advancing American innovation. The proposed regulations clarify eligibility requirements and the process to claim and receive an elective payment or transfer a credit, with a formal 60-day public comment period.