On September 19, 2024, FERC published a notice of proposed accounting release in the Federal Register. FERC “proposes to issue an accounting release [] to provide guidance on the accounting for the transferability of income tax credits related to certain energy projects as a result of the Inflation Reduction Act.” As proposed, the release would apply to jurisdictional public utilities, licensees, and natural gas companies, and “would require an entity to treat the transfer of income tax credits as a nonoperating activity.
IRA section 13801 allows for a one-time transfer of certain clean energy tax credits to unrelated taxpayers who may have greater tax liability than the original entity. Such transfers are available to non-profit organizations, for example, which lack federal tax liability.
The agency seeks public comment on the proposal by October 25, 2024.