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Robert Kovacev Quoted on IRS Administration of Tax Provisions Under IRA in Reuters

"Inflation Reduction Act Progress Report Pt. 2: Industry Impact"


Robert Kovacev commented on how the Internal Revenue Service (IRS) has been administering a number of tax provisions under the Inflation Reduction Act (IRA). Kovacev discussed taxpayer excitement about the transferability of some green energy credits, saying "[h]istorically, federal tax credits have not been transferable – you couldn't buy and sell them. IRA created a huge new market for people to literally purchase tax credits from taxpayers who are engaged in qualifying activity but couldn't make use of those credits." He added, "There are certain things that are still left open but I think taxpayers for the most part are glad to receive at least some element of increased certainty, knowing what the IRS position is." While there are details that need to be filled in, Kovacev acknowledged "[] that given the resource constraints that [the IRS and Treasury] have, they have done a commendable job of getting guidance out in a timely manner in this area," he said. "And even with the additional funding provided by the IRA, there are limitations to how fast the IRS and Treasury can issue guidance… I'm sure they're doing the best they can."