Get your questions answered – IRS offers office hours for pre-filing!

TLDR:

In an EO Update newsletter, the IRS announced that it will hold office hours to help entities with the prefiling registration process required to monetize certain clean energy credits.

– Elective pay: An eligible entity that qualifies for a clean-energy investment tax credit may choose to claim that credit as a refund. The entity must notify the IRS of their intent to claim the credit and file an annual tax return to claim elective pay for the full value of the credit.

– Transferability: Transferability allows entities that qualify for a tax credit — but are not eligible to use elective pay — to transfer all or a portion of the credit to a third-party buyer in exchange for cash. The buyer and seller would negotiate and agree to the terms and pricing.

– Entities and other taxpayers will need to use the IRA/CHIPS Pre-filing Registration Tool to complete the prefiling registration process required to claim an elective payment or make a credit transfer.

– During office hours, IRS representatives will be available to answer prefiling registration questions.

The IRS is offering office hours to assist entities with the prefiling registration process required to monetize certain clean energy credits. Elective pay and transferability are two options entities have to access clean energy investment tax credits. Elective pay allows eligible entities to claim the credit as a refund by notifying the IRS of their intent to claim the credit and filing an annual tax return. Transferability allows entities that qualify for the tax credit to transfer all or a portion of the credit to a third-party buyer in exchange for cash. To complete the prefiling registration process, entities and other taxpayers will need to use the IRA/CHIPS Pre-filing Registration Tool. During the office hours, IRS representatives will be available to answer any prefiling registration questions.