Treasury Releases Proposed Rule Clarifying that Tribal-Owned Entities Are Eligible for Direct Pay

On October 7, 2024 Treasury released a notice of proposed rulemaking to clarify that wholly-owned Tribal entities are eligible for direct payment of several IRA clean energy tax credits under IRA section 13801. Direct payment allows entities lacking federal income tax liability to receive the benefit of clean energy tax credits. Treasury is accepting public comment on the proposal through January 7, 2025 and will hold a public hearing on January 17, 2025. Treasury will also hold Tribal consultations on the proposed rule on December 16, 17, and 18, 2024, at 1 p.m. ET. Register for the consultations here. Treasury extended the deadline for Tribal consultation comments on the Dear Tribal Leader Letter on the NPRM to January 21st, 2025.