IRS Releases Draft Regulation, FAQ on Transferability of Energy Tax Credits
The Internal Revenue Service released a draft regulation and a list of frequently asked questions regarding the new election taxpayers may take to transfer certain energy tax incentives to other parties. For purposes of residential construction, this option generally applies to the Investment Tax Credit (Sections 48 and 48E) and the Production Tax Credit (Sections 45 and 45Y).
Transferability allows a taxpayer who generates certain clean energy tax credits to elect to transfer (i.e., sell) all or a portion of a tax credit to an unrelated third-party transferee (i.e., buyer) in exchange for cash. In such transactions, the buyer and seller negotiate and agree to the terms and pricing.
This guidance also includes information on the “elective pay” option available to non-profits, state and local governments, and certain other eligible entities. Elective pay allows entities that do not have tax liability to take advantage of these clean energy tax incentives through a direct payment from the Treasury Department.
The Investment Tax Credit and the Production Tax Credit are federal tax credits for installing qualifying clean energy technology, such as solar panels, as part of a commercial project, such as a multifamily building.
The Treasury Department also announced it intends to hold a series of webinars on the topic during the summer, beginning Thursday, June 29. Information on how to register can be found here.
Latest from NAHBNow
Labor | Advocacy
Sep 25, 2026
NAHB Responds as Immigration Enforcement Keeps Legal Workers Off Job Sites
As the housing industry faces a severe labor shortage, NAHB members report that increased immigration enforcement and jobsite raids are heightening worker fears and further straining the construction labor pool.
Advocacy
Sep 24, 2026
NAHB Helps Kick Off Innovative Housing Showcase on the National Mall
NAHB Chairman Bill Owens was on the National Mall in Washington, D.C., yesterday to help open the 2026 Innovative Housing Showcase, an annual event presented by the U.S. Department of Housing and Urban Development (HUD).
Latest Economic News
Economics
Sep 25, 2026
State and Local Government Tax Revenue Grows
Total tax revenue collected by state and local governments was up 5.8% from a year ago in the second quarter, according to the Quarterly Summary of State and Local Government Tax Revenue published by the U.S. Census Bureau. This was the highest year-over-year growth since the third quarter of 2024 (7.2%).
Economics
Sep 24, 2026
New Home Sales Rise as Affordability Challenges Continue
New home sales improved in August, but the monthly gain masked continued weakness in the broader new-home market. Elevated mortgage rates and ongoing affordability challenges continue to constrain demand, with new home sales remaining below last year’s pace and year-to-date sales lower than in 2025.
Economics
Sep 24, 2026
Single-Family Detached Homes Still Dominate Among the 55+ Population
Adults ages 55 and older make up a large and growing share of the U.S. population and play an important role in the U.S. housing market. In 2024, around 103 million Americans were ages 55 or older, ranging from adults still in the labor force to retirees.