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
Environmental Issues | Advocacy
Sep 15, 2026
NAHB Provides Agency Official Inside Look to Inform Changes to Stormwater Permitting
NAHB members and staff provided a tour of several residential subdivisions in Northern Virginia to an official from the U.S. Small Business Administration’s (SBA) Office of Advocacy. The tour offered an opportunity to show the official how NAHB members comply with construction stormwater requirements and to discuss the federal construction general permit (CGP) for stormwater discharges from active residential land development and construction sites.
Associate Members Committee | IBS
Sep 14, 2026
Associate Members Share Their Top Networking, IBS Advice
We spoke with three Associate members about their best tips on how to network with peers virtually throughout the year, and how to network in-person at key events such as the International Builders’ Show.
Latest Economic News
Economics
Sep 11, 2026
Inflation Persisted in August
Inflation in August remained sticky as renewed tensions with Iran continued pushing up oil prices, keeping pressure on the Fed to consider a rate hike at its upcoming meeting.
Economics
Sep 10, 2026
Existing Home Sales Fall despite Improved Inventory
Existing home sales fell for the third consecutive month as record-high home prices and elevated mortgage rates weighed on buyers. Mortgage rates resumed an upward trend after the July ceasefire ended.
Economics
Sep 10, 2026
Energy Prices Rise Again in August
Residential building material prices, excluding energy, rose 0.2% in August and were up 5.1% from a year ago. Energy prices rose sharply in August, as prices for energy inputs to residential construction rose 6.6% over the month.