The US clean energy industry in a public hearing Monday encouraged the Treasury Department and the IRS to make adjustments to proposed rules on the direct payment of clean energy tax credits.
Tax-exempt entities historically have not been able to take advantage of tax credits due to the lack of liability. The Democrats’ Inflation Reduction Act changed that, allowing entities such as state, local governments, tribes, and nonprofits to get cash in lieu of the credits.
The IRS and Treasury Department issued proposed rules on June 14 clarifying who is eligible to get the refund. Partnerships cannot make a direct ...