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June 14, 2023

IRS issues FAQs and four sets of regulations on elective payments and transfers of certain credits under the Inflation Reduction Act

In addition to frequently asked questions (FAQs), the IRS has issued two sets of proposed regulations explaining rules for (1) applicable entities that earn certain clean energy credits and make an "elective payment election" (REG-101607-23) and (2) eligible taxpayers that opt to transfer certain credits to unrelated parties (REG-101610-23). Further, new temporary regulations (TD 9975) provide rules for the mandatory IRS pre-filing registration process that must be completed before making an elective payment election or an election to transfer eligible credits. Finally, new proposed regulations (REG-105595-23) focus on the advance manufacturing investment credit.

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor