Consultation regarding the Elective Payment of Applicable Credits under the Inflation Reduction held on July 17 was reportedly met with excitement. The consultation addressed proposed regulations from the Treasury and the IRS.
"We value the input of Tribal governments in shaping the final guidance for the Elective Payment of Applicable Credits. This consultation will enable us to address questions and comments from Tribal leaders, ensuring the effective implementation of the IRA," Chief Lynn Malerba, Treasurer and Point of Contact for Tribal Consultation at the U.S. Department of the Treasury, said.
In an email, Malerba invited Tribal leaders to participate in a consultation regarding the Elective Payment of Applicable Credits under the Inflation Reduction Act of 2022 (IRA). The consultation was held Monday, July 17, virtually, with more than 100 Tribal Representatives present.
The IRA, considered the most significant clean energy and climate change legislation in U.S. history, includes a provision under Section 6417 of the Internal Revenue Code that allows certain tax-exempt and governmental entities to access clean energy tax credits as payments from the Internal Revenue Service (IRS). The consultation aimed to gather feedback and provide guidance on implementing this provision, according to a document from the Federal Register.
Malerba emphasized the importance of the consultation, stating in the email, "We value the input of Tribal governments in shaping the final guidance for the Elective Payment of Applicable Credits. This consultation will enable us to address questions and comments from Tribal leaders, ensuring the effective implementation of the IRA."
The proposed regulations, published by Treasury and the IRS, define applicable entities, outline the elective payment election process, and clarify the timing and determination of credit amounts. The consultation focused on eligibility, the temporary regulations for the pre-filing registration process, and any additional questions or comments on the proposed rules.
According to a news release released the following day, during the consultation, Tribal commenters expressed excitement about the ability of elective pay to lower the cost of clean energy projects on Tribal land, along with feedback on the process for claiming clean energy credits. The consultations are part of Treasury’s ongoing work to solicit input from Tribal governments to inform its implementation of the Inflation Reduction Act, with previous Tribal Consultations on November 28 and 29, 2022, and June 26, 2023.