Dear USET/USET SPF Family,
The U.S. Department of the Treasury has issued a Dear Tribal Leader Letter announcing a Tribal consultation on proposed regulations of the Elective Payment of Applicable Credits under the Inflation Reduction Act of 2022 (IRA). Under Section 6417 of the IRA, a new provision called an elective payment election allows certain tax credits as payments from the Internal Revenue Service (IRS) and generally applies to Tribal governments, tax-exempt organizations, and other entities. Section 6417 also allows applicable entities to make an elective payment election with respect to 12 applicable credits, which include the major/green energy production tax credit, investment tax credits, as well as credit for qualified clean commercial vehicles, credit for alternative fuel vehicle refueling property, and credit for carbon oxide sequestration. Further, Section 6418 of the IRA permits partnerships and other entities, but not applicable entities, to transfer all, or part of, 11 eligible credits to any unrelated transferee taxpayer for cash.
- To view proposed regulations for implementing Section 6417 of the IRA, please click here.
- To view proposed regulations for implementing Section 6418 of the IRA, please click here.
Treasury will be hosting a briefing session on the Elective Payment of Applicable Credits Guidance. Details are as follows—
Details regarding the upcoming Tribal consultation on the proposed regulations for Section 6417 and 6418 of the IRA are as follows—
For more information regarding the Elective Payment of Applicable Credits, please view the Dear Tribal Leader Letter or Treasury’s Elective Pay and Transferability website. Treasury has also produced a Frequently Asked Questions document as well as a Tribal Fact Sheet. Written comments on the proposed regulations are due Friday, August 18, 2023 and can be submitted to firstname.lastname@example.org.
For more information, please contact Brian Howard, USET SPF Senior Policy Analyst, at email@example.com.