The Biden Administration’s Inflation Reduction Act (IRA) represents the most significant legislation to invest in clean energy and address climate change in our nation’s history. Under Section 6417 of the IRA, a new provision called an elective payment election will allow for the first time certain tax-exempt and governmental entities to access specified clean energy tax credits as payments from the Internal Revenue Service (IRS).
Section 6417 generally applies to tax-exempt organizations, State and local governments, Indian tribal governments (“Tribes”), Alaska Native Corporations, the Tennessee Valley Authority, and rural electric cooperatives, which are referred to as “applicable entities”. Section 6417 allows applicable entities to make an elective payment election with respect to twelve (12) “applicable credits,”1 which include the major clean/green energy production tax credits and investment tax credits, as well as the credit for qualified clean commercial vehicles, the credit for alternative fuel vehicle refueling property, and the credit for carbon oxide sequestration.
The U.S. Department of the Treasury, is inviting Tribal Leaders to a consultation on the Elective Payment of Applicable Credits under the Inflation Reduction Act of 2022 (IRA), codified as Section 6417 of the Internal Revenue Code (Section 6417).
We respectfully request that each Tribe register one person to participate in the consultation. All others are welcome to register as listen-only participants.
The Dear Tribal Leader Letter (DTLL), summarizes prior consultations, includes expanded information regarding Notices of Proposed Rulemaking, and provides instructions for mandatory registration prior to making an elective payment election.
The DTLL also contains the questions that will be asked of Tribal leaders in the consultation. In addition to a Tribal consultation, Treasury is accepting written or electronic comments received by August 18, 2023, 11:59 p.m. Alaska Time. Submit written comments at tribal.consult@treasury.gov.
Please note that consultations are off the record and not for press purposes.
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