U.S. Department of the Treasury Releases Final Rules to Expand Access to Clean Energy Tax Credits

Final rules will improve access to direct pay for co-owned clean energy projects, helping to expand the buildout of the clean energy economy.WASHINGTON – Today, the U.S. Department of the Treasury and the IRS released final regulations that will expand the reach of the Biden-Harris Administration’s Inflation Reduction Act by helping entities that co-own clean energy projects access clean energy tax credits through elective pay – commonly known as direct pay.Prior to the Inflation Reduction Act, many entities – like state and local governments, Tribes and territories, public school districts, rural electric co-ops, and tax-exempt organizations like churches, hospitals, higher education institutions, and non-profits – could not benefit from clean energy tax credits because they had little or no federal tax liability.