Date: 12/22/2023
Type: Implementation of IRA
On December 22, 2023, IRS announced the opening of a pre-filing tool for taxpayers to register in order to transfer or take direct pay of clean energy tax credits. IRA section 13801 created two mechanisms that allow entities lacking federal tax liability to benefit from clean energy tax credits, transferability and direct pay (elective pay). Taxpayers register using the tool to receive a registration number, which they then must include in their tax return to make a valid election. IRS recommends taxpayers register at least 120 days prior to submitting a tax return that makes an election for direct pay or transfer of tax credits.