June 14, 2023

 

Treasury Department, IRS Release Urgently Awaited Transferability and Direct Pay Guidance

 

WASHINGTON, D.C. – The U.S. Department of the Treasury and the Internal Revenue Service (IRS) released guidance today on two key provisions in the Inflation Reduction Act (IRA), transferability and direct pay. Following is a statement from Gregory Wetstone, President and CEO of the American Council on Renewable Energy (ACORE):

“It’s very encouraging to see guidance swiftly issued on two of the IRA’s most transformational and impactful programs– credit transferability and direct pay. We fully expect this guidance to unleash a massive infusion of new renewable energy investment. Making renewable tax credits broadly transferable helps address current constraints in the nation’s tax equity market, while the new direct pay  regime  makes it easier for tribes, state and local governments, co-ops and other nonprofit entities to participate in the clean energy transition. Additionally, the guidance affirming direct pay eligibility for the 45X Advanced Manufacturing Component Credit will allow a substantial volume of new American clean energy manufacturing to move forward.

We are thrilled to see constructive treatment of numerous key issues reflected in this guidance and look forward to continuing to work with the Treasury Department as it moves to finalize these proposed rules.”

 

Background:

ACORE submitted both individual and joint comments to the U.S. Treasury Department seeking clear guidance on a range of important issues, including transferability and direct pay. ACORE staff has also participated in multiple conversations and roundtables with the Biden administration on the implementation of the IRA.  

 

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About ACORE:
For more than 20 years, the American Council on Renewable Energy (ACORE) has been the nation’s premier pan-renewable nonprofit organization. ACORE unites finance, policy and technology to accelerate the transition to a renewable energy economy. For more information, please visit www.acore.org.

 

Media Contacts:

Alex Hobson
Sr. Vice President, Communications
American Council on Renewable Energy
hobson@acore.org | 202.777.7584 (o) | 202.594.0706 (c)

Dylan Helms
Associate, Communications
American Council on Renewable Energy
helms@acore.org | 202.891.7868 (o) | 727.290.8804 (c)