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
Disaster Response
Aug 05, 2026
How to Help Spokane Relief and Recovery Efforts
A series of fast-moving wildfires recently broke out in and around Spokane, Wash., causing widespread destruction. In response, the Spokane Home Builders Association is accepting donations to the Spokane Wildfire Disaster Relief Fund to provide support to the communities hit hardest by the wildfires.
Membership
Aug 05, 2026
Spring Membership Drive Rewards Strongest HBA Recruiters
Forty-eight home builders associations (HBAs) achieved tremendous recruitment and retention success in the 2026 Membership Drive program.
Latest Economic News
Economics
Aug 04, 2026
Construction Job Openings Rising
The number of open positions in the construction sector increased in June, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down measurably from three years ago due to declines in construction activity, particularly in housing.
Economics
Aug 03, 2026
Residential Construction Spending Slips as Remodeling Activity Weakens
Private residential construction spending declined 0.3% in June, while substantial downward revisions to improvement (remodeling) spending significantly altered the sector’s recent trajectory.
Economics
Jul 31, 2026
Housing’s Share of GDP Moves Lower in the Second Quarter
Housing’s share of the economy was 15.8% in the second quarter of 2026, according to the latest estimates of GDP produced by the Bureau of Economic Analysis. This share is down from 15.9% in the first quarter and is at the lowest level since 2019.