The IRS recently announced the launch of the IRS Energy Credits Online pre-filing registration tool for taxpayers who intend to receive a direct payment or transfer a clean energy credit. Established by the Inflation Reduction Act (IRA), Elective Pay (or “direct pay”) and Transferability are credit monetization mechanisms to help states, local governments, non-profits, and other eligible entities access clean energy tax credits.

Entities will use IRS Energy Credits Online to complete a required pre-filing registration process and receive a registration number. The registration number must be included on the taxpayer’s annual return when making an elective payment or transfer election for a clean energy credit. An IRS Energy Credits Online user guide can be found here and video tutorial here.

Additionally, the Department of Treasury will host an Elective Pay webinar and provide an overview of the pre-filing registration process on Wednesday, January 17 at 2:30 p.m. ET/1:30 p.m. CT.

Register in advance for this briefing:

Earlier this year, Treasury issued proposed Elective Pay and Transferability guidance, which can be found here and here. In addition to the Treasury press release, you can find FAQs and fact sheets that outline key information contained in the proposed guidance. You can also find helpful information on Treasury and the IRS will carefully consider public feedback before issuing final rules.