On June 14, 2023, the IRS released proposed regulations on the provisions created under the Inflation Reduction Act of 2022 (the “IRA”) that will allow developers to sell energy tax credits.
Transferability is expected to supplement (and in some cases may replace) the existing method of monetizing tax credits through tax equity partnership structures, and will undoubtedly expand the market for investment in energy tax credits by allowing purchasers of these credits to offset predictable taxable income.
