Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Multiple Direct Pay Elections Not Intent of Tax Credit, Economist Says

Jan. 25, 2023, 8:50 PM

Multiple direct pay elections for the new advanced manufacturing production credit were not the intent of the statute, a Joint Committee on Taxation economist said Wednesday at a District of Columbia Bar conference.

Taxpayers that are not tax-exempt entities can elect for direct pay for five years for three tax credits—45Q, 45V, and 45X—in the tax-and-climate law.

For the carbon oxide sequestration tax credit under Section 45Q and clean hydrogen production tax credit under Section 45V, the direct pay election is made when a qualified facility is placed in service. However, tax professionals said the statute ...