US Treasury Opens Pre-Filing Registration for Inflation Reduction Act Tax Credits, Expanding Access for Non-Profits and Firms.

The US Treasury Department (IRP) has opened the pre-filing registration portal for credits to be claimed under the Inflation Reduction Act of 2022 (IRA). Registration is required to obtain a registration number to be included on income tax return filings to claim tax credits. This registration affects both tax exempt entities seeking direct cash payments from the IRS and those seeking to transfer credits to a third-party buyer in exchange for cash. The new legislation allows non-profit entities to pursue elective pay credits and for-profit firms to transfer tax credits earned in exchange. The IRS has released a 73-page registration guidebook outlining the rules. Taxpayers are allowed only one pre-Filing registration for the applicable tax period and must apply for every credit they intend to claim within one filling. Taxpayer can update or amend pre-registration after the initial submission has been reviewed by the IRS.