Direct pay and credit transfer options To help co

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%.