The Department of the Treasury, in conjunction with the Internal Revenue Service (IRS), has achieved a significant milestone in its efforts to expand the reach of Clean Energy Taxes and expedite project development. More than 45,500 projects have been registered for the New Elective Pay and Transferability Credit Monetization Provisions under the Inflation Reduction Act.

"Before the Inflation Reduction Act, it was more challenging for companies to access tax incentives to finance projects and deploy new clean power. The law included two new mechanisms to fix this and translate credits into financing, ensuring more clean energy projects are built quickly and affordably, and more communities benefit from the growth of the clean energy economy," stated U.S. Deputy Secretary of the Treasury Wally Adeyemo. "Meeting our economic and climate goals depends on the ability of companies to finance capital-intensive projects like building new factories, and initial data is encouraging. Increasing access to credits also underscores the connection between the economic and climate goals of the Inflation Reduction Act and our work to create a modernized IRS."

According to a press release by the Department of the Treasury, The Inflation Reduction Act has established direct pay and transferability delivery mechanisms that enable entities to fully utilize clean energy tax credits. This Act provides businesses and tax-exempt organizations with enhanced opportunities for tax benefits that were previously underutilized. The pre-file registration process developed by IRS has expedited access to clean energy tax credits, thereby incentivizing businesses to make use of them.

The IRS's Energy Credits Online (ECO) system assigns taxpayers a registration number that must be included in their annual return when transferring clean energy credit. According to another press release by the Department of Treasury, out of 45,500 total registered projects, over 98% are pursuing transferability of clean energy.