IRS Wraps Up Green Energy Tax Credit Transfer Rules, Explained

Final rules from the Treasury Department governing energy tax credit transfers cement guidance for one of the bigger changes to come out of the 2022 tax-and-climate law known as the Inflation Reduction Act.

The IRS and Treasury finalized proposed rules issued last June over how eligible taxpayers can effectively buy or sell certain energy tax credits, and clarify who is eligible to monetize the credits and how credits can be transferred. Transferability is expected to bring in a wider array of buyers and capital into clean energy financing.

The market for tax credit transfers has already exploded, with billions of ...