Photo voltaic & Storage Trade Commends Treasury Dept. for Finalizing Tax Credit score Transferability Rule

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WASHINGTON, D.C. — This week, the U.S. Division of the Treasury issued new steering on Part 6418 of the Inflation Discount Act (IRA) that enables clear vitality tax credit to be monetized by instantly transferring the credit score to a taxpaying entity.

Following is a press release from Ben Norris, vp of regulatory affairs on the Photo voltaic Vitality Industries Affiliation (SEIA): 

“Expanded clear vitality tax credit are supercharging America’s vitality financial system. The photo voltaic and storage business appreciates Treasury’s efforts to rapidly finalize advanced guidelines round tax credit score transferability, serving to to offer the pliability many clear vitality corporations want to maneuver ahead with billions of {dollars} in investments.

“These guidelines enable photo voltaic, storage, and manufacturing corporations of all sizes to effectively monetize numerous tax credit with out the necessity for big, advanced, and dear tax fairness constructions. The principles will strengthen present switch markets and add a lot wanted liquidity for clear vitality companies as they navigate excessive rates of interest and different financial headwinds.

“With the transferability provisions of the Inflation Discount Act (IRA) totally carried out, we proceed to name on the Biden administration to revise proposed Basel III guidelines on tax fairness capitalization necessities. The U.S. photo voltaic and storage business is anticipated so as to add over half a trillion {dollars} to the U.S. financial system over the subsequent decade, and the proposal as written threatens to blunt the impression of the IRA’s transferability provisions.”

From the Photo voltaic Vitality Industries Affiliation® (SEIA)