Page 53 - Inflation-Reduction-Act-Guidebook

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The Alternative Fuel Vehicle Refueling Property Credit (30C) and Credit for Qualified
Commercial Clean Vehicles (45W) are eligible for direct pay. Section 13801 of the Inflation
Reduction Act, adding Section 6417 of the Internal Revenue Code, extends many of the law’s
tax incentives, including the 30C and 45W credits, to entities that generally do not benefit from
income tax credits, such as state, local, and Tribal governments and other tax-exempt entities.
Specifically, these entities can elect to receive these tax credits in the form of direct payments.
The 30C tax credit also is transferable. Section 13801 adds Section 6418 of the Internal
Revenue Code and makes certain tax credits transferable. Taxpayers that are generally ineligible
for direct payment of credits may transfer all or a portion of certain credits to an unrelated party
in exchange for cash. As provided in other sections of the Inflation Reduction Act, starting in
2024, buyers of new and pre-owned clean vehicles may transfer the Clean Vehicle Credit (30D)
and Credit for Previously-Owned Clean Vehicles (25E) to dealers in exchange for a reduction
in price at the point of sale.

48 B U IL D IN G A C L E A N E N E R G Y E C O N O MY
G U ID E B O O K | J AN UARY 20 2 3 | VE RS I O N 2