Evergreen submits comments to the IRS on tax credit regulations

Evergreen has submitted comments to the IRS in response to Notices 2022-49 (Request for Comments on Certain Energy Generation Incentives), 2022-50 (Request for Comments on Elective Payment of Applicable Credits and Transfer of Certain Credits), and 2022-51 (Request for Comments on Prevailing Wage, Apprenticeship, Domestic Content, and Energy Communities Requirements Under the Act Commonly Known as the Inflation Reduction Act of 2022).

In our comments, we recommended that the Treasury provide the following guidance in proposed regulations for the Inflation Reduction Act: 

1. Create a simple procedure for tax credit transfers to guard against fraud and facilitate a liquid market for tax credit transfers. 
2. Create a yearly application system for the allocation of the environmental justice capacity limitation, in a way that considers both carbon impact and equity. 
3. Create resources to help define eligibility for the additional incentive amounts created under the Act, in particular where those are geographically defined. 
4. Clarify the definition of certain key terms in the Act, such as “financial benefit” and “reasonable cause,” that will be of key significance for participants in a tax equity transfer market and for developers generally. 
5. In general, clarify the application of certain rules related to incentives, transfer of credits,  and recapture events to promote certainty and reduce risk for both developers and buyers of tax credits.  

For more information on the Inflation Reduction Act, click here. Please note that this article was posted prior to the passage of the bill - President Biden signed the bill into law on August 16, 2022.

A copy of our full comment letter is available for download below. We would in particular like to thank two of our developer partners, Sunkeeper Solar and Big Sun Solar, for their contributions to these comments.

Download Ever.green's full comments to the IRS regarding the IRA Implementation.