Clean Energy Tax Credit Transferability Under the Inflation Reduction Act: New Treasury and IRS Final Regulations, Hosted by Strafford

This CLE webinar will provide lawyers, developers, and investors guidance on the process and eligibility for transferability of energy tax credits under current US tax law, methods for making valid transfers, rules for transferors and transferees, challenges, and key considerations.

Description

The Inflation Reduction Act of 2022 (IRA) expands tax incentives for various energy resources, reshapes how eligible projects are financed, and monetizes new and expanded tax credits. Section 6418 of the Internal Revenue Code (IRC) permits taxpayers to transfer all or a portion of certain energy-related tax credits for cash. This opens the door to a larger pool of financing for developers and tax-equity investors.

Recently, the US Department of the Treasury and the IRS released final regulations under IRC Section 6418 for transferrable tax credits for incentives included in the IRA. Counsel must understand these credits and the final rules governing the transfer of such credits.

Listen as this panel discusses the clean energy tax credit transfer regime. The panel will also discuss the recent IRS and Treasury final rule for transferable tax credits as well as key elements of and clarifications under the rule.

Outline

1. Tax credit transfer regime and Section 6418
2. Overview of the final regulations
3. Key elements and clarifications
   1. Tax credit purchase agreements
   2. Tax credit transfer mechanics
   3. Loan and bridge financing
   4. Credit property registration
   5. Transferability
   6. Applicability of anti-abuse rule
   7. Passive activity rule
   8. Excessive credit transfers and recapture
4. Takeaways

Benefits

The panel will discuss these and other key issues: 

• Transfer of US energy-related tax credits, requirements, and limitations
• Manner and method for making valid transfers
• Rules for buyers and sellers
• Transfers involving partnerships and S corporations
• Key considerations and next steps for renewable energy developers, producers, and investors