Solar and Storage Industry Commends Treasury Dept. for Finalizing Tax Credit Transferability Rule

WASHINGTON, D.C. — Today the U.S. Department of the Treasury issued new guidance on Section 6418 of the Inflation Reduction Act (IRA) that allows clean energy tax credits to be monetized by directly transferring the credit to a taxpaying entity.

Following is a statement from Ben Norris, vice president of regulatory affairs at the Solar Energy Industries Association (SEIA): 

“Expanded clean energy tax credits are supercharging America’s energy economy. The solar and storage industry appreciates Treasury’s efforts to quickly finalize complex rules around tax credit transferability, helping to provide the flexibility many clean energy companies need to move forward with billions of dollars in investments.

“These rules allow solar, storage, and manufacturing companies of all sizes to efficiently monetize various tax credits without the need for large, complex, and costly tax equity structures. The rules will strengthen existing transfer markets and add much needed liquidity for clean energy businesses as they navigate high interest rates and other economic headwinds.

“With the transferability provisions of the Inflation Reduction Act (IRA) fully implemented, we continue to call on the Biden administration to revise proposed Basel III rules on tax equity capitalization requirements. The U.S. solar and storage industry is expected to add over half a trillion dollars to the U.S. economy over the next decade, and the proposal as written threatens to blunt the impact of the IRA’s transferability provisions.”

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About SEIA®: 

The Solar Energy Industries Association® (SEIA) is leading the transformation to a clean energy economy, creating the framework for solar to achieve 30% of U.S. electricity generation by 2030. SEIA works with its 1,000 member companies and other strategic partners to fight for policies that create jobs in every community and shape fair market rules that promote competition and the growth of reliable, low-cost solar power. Founded in 1974, SEIA is the national trade association for the solar and solar + storage industries, building a comprehensive vision for the Solar+ Decade through research, education and advocacy. Visit SEIA online at www.seia.org and follow @SEIA on Twitter, LinkedIn and Instagram.

Media Contact: 

Morgan Lyons, SEIA’s Director of Communications, mlyons@seia.org (202) 556-2872