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Posted On: 09/23/2025 3:49:08 PM
Post# of 14009
Direct pay and credit transfer options
To help companies, especially those with low or no tax liability, benefit from the credit, two monetization options are available:
1) Direct pay (Elective Pay): For-profit companies can receive a direct payment (a cash refund) from the IRS for the first five years that they claim the §45X credit. Tax-exempt entities can use direct pay for the full duration of the credit.
2) Transferability: Companies can sell all or part of their §45X credits to an unrelated third-party taxpayer in exchange for cash. This option provides liquidity to manufacturers who prefer not to wait for a tax refund.
Why popping by Q2 2026, " can receive a direct payment (a cash refund) from the IRS for the first five years" because time is running out .
Full benefits: The credit provides full benefits through tax year 2029.
Phaseout period (except critical minerals):
2030: The credit is reduced to 75%.
2031: The credit is reduced to 50%.
2032: The credit is reduced to 25%.
To help companies, especially those with low or no tax liability, benefit from the credit, two monetization options are available:
1) Direct pay (Elective Pay): For-profit companies can receive a direct payment (a cash refund) from the IRS for the first five years that they claim the §45X credit. Tax-exempt entities can use direct pay for the full duration of the credit.
2) Transferability: Companies can sell all or part of their §45X credits to an unrelated third-party taxpayer in exchange for cash. This option provides liquidity to manufacturers who prefer not to wait for a tax refund.
Why popping by Q2 2026, " can receive a direct payment (a cash refund) from the IRS for the first five years" because time is running out .
Full benefits: The credit provides full benefits through tax year 2029.
Phaseout period (except critical minerals):
2030: The credit is reduced to 75%.
2031: The credit is reduced to 50%.
2032: The credit is reduced to 25%.
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