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
Membership | Economics
Sep 11, 2026
Median Revenue Flat for NAHB Builder Members in 2025
According to the most recent NAHB member census, nearly two-fifths (38%) of NAHB Builder members earned between $1 million and $5 million in total revenue in 2025.
Education | Education at IBS
Sep 10, 2026
13 IBS Education Presentation Replays Now Available
To help industry professionals stay ahead of residential construction trends and bring actionable ideas to their businesses, NAHB is offering members exclusive access to the most valuable IBS Education sessions from the 2026 show.
Latest Economic News
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.
Economics
Sep 09, 2026
Mortgage Applications Decline for Sixth Straight Month in August
Mortgage application activity continued to decline in August as elevated US treasury yields pushed mortgage rates higher. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, declined 3.2% month-over-month in August on a seasonally adjusted basis, marking the sixth consecutive monthly decline.
Economics
Sep 09, 2026
Who Are NAHB’s Builder Members?
The National Association of Home Builders (NAHB) conducts an annual census to better understand the composition and characteristics of its members. In 2025, 35% of NAHB’s membership was comprised of builder members—single-family and multifamily builders, residential and commercial remodelers, commercial builders, land developers, and manufacturers of modular/panelized/log homes.