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March 5, 2024

IRS releases final regulations on elective payments for the CHIPS advanced manufacturing investment credit

The IRS today released final regulations (TD 9989) on making an elective payment for the advanced manufacturing investment credit, which was enacted by the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act. The final regulations retain the basic approach and structure of the June 2023 proposed regulations with some modifications (see Tax Alert 2023-1080) concerning the limitations for making the elective payments the denial of double benefits rule and pre-filing requirements. The final regulations also provide an interim rule for determining a partner's distributive share of tax-exempt income. A Tax Alert is forthcoming.

Published by NTD’s Tax Technical Knowledge Services group; Chris DeZinno, legal editor