Summer 2023 Solar Industry Update
Transferability of Tax Credits Guidance
Treasury and the IRS have issued FAQs, proposed, and temporary regulations on the transferability of the MPTC, 48C, ITC
and PTC. Comments were due to the IRS by August 14th.
3
(1
seller
(2)
(not eligible for direct pay)
Tax burden too low
to claim full credit
5
4
pre-filing registration
registration #
tax forms, registration #, ¢ taxes
+ transfer election statement
registration #
$ (cash)
transfer election statement
IR
ES
registration #, $ taxes,
tax forms,+ transfer
election statement
$$ refund (if applicable)
buyer
(e.g., has a higher
tax burden)
Step ①- Pursue a qualifying project
Step 2 Complete pre-filing.
registration with the IRS and get #
Step ③Meet all requirements of
qualifying project to earn credit
Step ④Arrange to transfer the
credit to an unrelated buyer for cash
Step ⑤- Provide the buyer the #
Step ⑥- Complete the transfer
election statement with the buyer
Step ⑦- Both buyer and seller file
annual taxes including the transfer
election statement and registration
number
Not all steps need be sequential, but ② must precede ⑤- ⑦.View entire presentation