Recent U.S. Treasury Department and Internal Revenue Service (IRS) final regulations (T.D. 9993) outline the requirements an eligible credit holder of certain clean energy credits must adhere to in order to properly elect to sell the credit (i.e., monetize).The statute allows eligible taxpayers to transfer certain clean energy credits to a third party in exchange for tax-free immediate funds so that businesses can take advantage of the incentives if they lack sufficient tax liability to fully utilize the credits themselves.The final regulations include definitions and special rules applicable to partnerships and S corporations as well as rules addressing excessive credit transfer or recapture events. In addition, the final regulations describe rules related to the mandatory IRS pre-filing registration process.

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