On March 5, 2024, the U.S. Department of the Treasury and the Internal Revenue Service released the following guidance with respect to the elective payment election under Section 6417:

  • Final regulations under Section 6417, which modify and finalize proposed regulations released on June 21, 2023;
  • Proposed regulations under Section 761, which would expand the election to be excluded from Subchapter K to apply to certain unincorporated organizations organized exclusively for electricity generation; and
  • Notice 2024-27, which requests comments regarding whether, in certain circumstances, the Direct Payment Election should be available for energy transition tax credits that are purchased by the taxpayer pursuant to Section 6418.

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