The AICPA has submitted comments to the Treasury and the IRS requesting guidance pertaining to energy tax credit provisions of the Inflation Reduction Act and on section 48D advanced manufacturing investment credit provisions of the Creating Helpful Incentives to Produce Semiconductors Act.
These proposed temporary regulations provide some guidance to the pre-registration filing requirements and the clarification and definition of applicable entities.
However, they also create unnecessary and negative tax implications, making the purchaser of the credit subject to passive activity and Section 469 rules, though the transferee (purchaser) does not hold ownership interest in the entity.
The AICPA has requested the removal of the reference to Section 469 in the proposed regulations. See the AICPA’s recommendations.