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.
Since 1985, Roger has practiced in the areas of federal, state, and local tax planning and controversies, with an emphasis on the unique tax and accounting issues facing rate-regulated public utilities. He has recently focused on matters such as the use of tax credits and incentives for the acquisition of utility scale renewable energy projects, sales and use tax advice and litigation, property tax advice and litigation, non-shareholder contributions to capital, VEBA taxation, and the taxation of nuclear decommissioning trust funds.