Hope for Individuals Wanting to Purchase Energy Tax Credits

October 17, 2023  | By Erik Lincoln

After passage of the Inflation Reduction Act last year, companies are now able to sell their energy tax credits. The market for the purchase and sale of such tax credits is just beginning, However, that market excludes individuals from purchasing energy tax credits. This is because proposed rules released by the Treasury Department in June 2023 plan to apply passive loss rules to individuals that purchase energy tax credits. This would generally prevent individuals from using energy tax credits against their active income.

The Treasury Department is said to now be considering ways to allow individuals to buy clean energy tax credits from companies. This is based on comments made by Sarah Haradon, attorney-adviser at Treasury’s Office of Tax Policy, at a virtual conference hosted by the American Bar Association’s tax section.

Erik Lincoln is a founding member of Lincoln. In addition to being an attorney he is also a CPA. Erik has consistently been recognized as one of the top attorneys in North Carolina, by Business North Carolina.