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Energy tax credits elective payment and the Member Income Test

In a prior post, I addressed new regulations from Treasury Department addressing clean energy tax credit options. The post discussed options for elective payment or transfer of the clean energy tax credits, including I.R.C. Section 48.

In one of its regulatory notices, the Treasury Department addressed how the payment option would be treated for purposes of the member income test. The Treasury Department clarified that because the payment offsets taxable income, it will not affect the member income test.

The Treasury Department and the Service requested comments concerning whether additional guidance is needed for consolidated groups with Subchapter T cooperatives.