Key Considerations When Buying U.S. Clean Energy Tax Credits
Author: Isaac J. Wheeler.; Samuel E. Saunders.; Ellen Y. Kim.
Source: Volume 41, Number 02, Winter 2024 , pp.53-57(5)
< previous article |next article > |return to table of contents
Abstract:
Following the release of the proposed regulations on the requirements and procedure for transferring federal income tax credits under the Inflation Reduction Act of 2022 on June 14, 2023, the market for selling and purchasing tax credits became more active. This article discusses important considerations for prospective tax credit purchasers who are looking to enter the tax equity market.Keywords: Inflation Reduction Act of 2022, tax credit transferability, Investment Tax Credits, Production Tax Credits, carrybacks and carry forwards, penalties, recapture
Affiliations:
1: Sullivan & Cromwell LLP; 2: Sullivan & Cromwell LLP; 3: Sullivan & Cromwell LLP.