On June 14, the Treasury Department (Treasury) and the Internal Revenue Service (IRS) issued proposed regulations and temporary regulations on tax credit transfers pursuant to Section 6418 of the Internal Revenue Code of 1986, as amended (Code), which was enacted by the Inflation Reduction Act. Section 6418 allows eligible taxpayers to elect to transfer certain tax credits, including the ITC and PTC, to unrelated taxpayers rather than using the credits against their federal income tax liabilities. The IRS also issued regulations on direct payments pursuant to Section 6417, which we will address in a subsequent update.
Adam is a nationally recognized attorney whose practice encompasses a wide array of tax matters for energy industry clients, including utilities, tax equity investors, and project developers and sponsors. Adam also represents clients in mergers and acquisitions, debt and equity offerings, transactions involving partnerships, LLCs, and other pass-through entities, and tax controversy matters.