Treasury proposes rules on monetizing energy tax credits and on semiconductor chips tax credit

Yesterday the IRS issued proposed and temporary regulations on elective payments and transfers of certain credits under the Inflation Reduction Act and guidance on the advanced manufacturing investment credit.

The advanced manufacturing investment credit under section 48D allows taxpayers to obtain a refund for the credit. Section 6417 allows certain taxpayers to elect to treat certain credits and payments to the IRS and claim a refund for these credits. Section 6418 allows certain taxpayers to transfer certain credits to an unrelated third party for cash. Among other things, the regulations provide requirements that must be satisfied in order to claim a refund or sell a credit. Baker Tilly will issue a more detailed explanation of the guidance in the near future.

For more information on this topic, or to learn how a Baker Tilly specialist can help, contact our team.

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