Expanding Applicable Entities’ Ability to Elect Direct Pay in Connection With Credit Property Owned Indirectly Through an Unincorporated Organization.
By Bracewell.
Treasury and IRS Issue Final and Proposed Regulations Expanding Applicable Entities’ Ability to Elect Direct Pay in Connection With Credit Property Owned Indirectly Through an Unincorporated Organization
On November 19, 2024, the Treasury Department and the Internal Revenue Service issued final regulations under Internal Revenue Code (Code) Section 761 (the Final Regulations) enabling certain entities to make a direct pay election with respect to tax credits earned in respect of applicable credit property owned indirectly through certain unincorporated organizations, such as limited liability companies. Simultaneously with the issuance of the Final Regulations, proposed regulations under Code Section 761 (the Proposed Regulations) were issued to address certain related administrative matters.
