Treasury Seeks Comment on Clean Energy Credit Elective Pay and Credit Transfer

On March 5, 2024, Treasury released a notice seeking comment on situations in which an Internal Revenue Code section 6417(a) election could be made for credits purchased in transfers under Internal Revenue Code section 6418(a), a procedure known as “chaining.” The IRA created two new procedures allowing entities lacking federal tax liability to take advantage of clean energy tax credits – section 13801 of the IRA created both the direct pay procedure and a procedure allowing for the transferability of tax credits to other entities with tax liability.

Comments are due by December 1, 2024.