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IRS Opens Registration for IRA-Eligible Transferability and Elective Pay

Friday, December 22, 2023 - 8:35AM

The Internal Revenue Service (IRS) today announced that qualifying businesses and nonprofits can register using the IRA/CHIPS Pre-Filing Registration Tool, allowing them to participate in clean energy tax incentive elective payments or a transfer of credits under the Inflation Reduction Act (IRA) of 2022. Both the IRA and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act allow states, local governments, nonprofits and other eligible entities to benefit from certain investment tax credits (ITCs) and production tax credits (PTCs) through elective pay or transfer. Earlier this year, the Department of Treasury issued proposed elective pay and transferability guidance. Taxpayers who intend to use either option must prefile to receive a registration number that is included in their annual tax return as part of making a valid election. Registration is not possible before the beginning of the tax year in which the credit will be taken, but the current recommendation is to submit the prefiling registration at least 120 days before the organization or entity plans to file the tax return on which it will make its election.

Keep informed on the latest IRS guidance and industry trends at the Novogradac 2024 Spring Renewable Energy and Environmental Tax Credits Conference, May 16-17, 2024, in San Diego.

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