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Treasury, IRS Release Final Guidance on Transferrable Tax Credits Under IRA

Thursday, April 25, 2024 - 9:18AM

The U.S. Department of the Treasury and Internal Revenue Service (IRS) today released final guidance that describes rules and definitions for transferrable tax credits for incentives included in the Inflation Reduction Act (IRA) of 2022. The final regulations will be published in Monday’s Federal Register. Under the IRA and the Creating Helpful Incentives to Produce Semiconductors (CHIPs) Act, eligible taxpayers can transfer all or a portion of certain credits to an unrelated taxpayer for cash payments for tax years beginning after Dec. 31, 2022. The final regulations include special rules concerning excessive credit transfers and recapture events, as well as describing a mandatory IRS pre-filing registration process through an electronic portal for the transfer to be eligible.

Provisions of the IRA and updated guidance are a focus of the Novogradac 2024 Spring Renewable Energy Tax Credits Conference, May 16-17 in San Diego.

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