IRS Launches the Pre-filing Registration Tool for the Inflation Reduction Act of 2022 and CHIPS Act of 2022
Blog
February 1, 2024
The Inflation Reduction Act of 2022 (the “IRA”) made several changes to the tax laws allowing owners to transfer certain manufacturing investment, clean energy investment and production tax credits to unrelated third parties or to elect for direct payment in lieu of the tax credit, if certain requirements are met. Among the various requirements set forth in the IRA, taxpayers that want to take advantage of transferring the tax credits or receiving a direct payment from the IRS will need to file with the IRS (i) a transfer election statement, (ii) a relevant source credit form, and (iii) a Form 3800 (General Business Credit) with such taxpayer’s tax return. However, before taxpayers can make a transfer or direct payment election, they must complete a pre-filing registration process with the IRS to obtain a registration number. The registration number is required to be disclosed on the taxpayer’s annual tax return as part of making a valid election.