The U.S. Inflation Reduction Act of 2022 introduced new ways for taxpayers to monetize clean energy-related tax credits. One way was allowing taxpayers to “transfer” or sell the tax credits to third parties for cash. On April 25, 2024, the Treasury Department and the IRS released final regulations, which will become effective July 1, 2024, addressing the requirements for “transferring” these credits. The attached memo contains key updates and clarifications in the final regulations.
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