Elective Payment Election (EPE) Overview

Under the IRA of 2022, IRC 6417(d)(3)(A)(i), the elective payment election (EPE) must be made by the due date of the return (including extensions). An elective payment election may only be made on an original return (including any revisions on a superseding return) filed not later than the due date (including extensions of time) for the original return for the taxable year for which the applicable credit is determined. This election was briefly termed Deemed Payment Elections (DPE) so returns could indicate either terminology. By making this election, the amount of the credit is treated as a payment of tax. Any overpayment will result in a refund.

Applicable MFTs are 02, 05, 06 and 34.

For each EPE, a taxpayer must pre-register and receive a registration number from the IRS before filing a tax return making the EPE.

The rules generally affect applicable entities, which includes tax-exempt organizations, State and local governments, Indian Tribal governments, Alaska Native Corporations, the Tennessee Valley Authority, and rural electric cooperatives. For more information see Pub 5817, Elective Pay Overview, through Pub 5817-G, Clean Energy Tax Incentives: Elective Pay-Eligible Tax Credits. In the table below are the thirteen credits [twelve credits for which an applicable entity can make an EPE under IRC 6417 and one credit allowing an EPE under IRC 48D(d)] including Credit Reference Number (CRN) and Item Reference Number (IRN):

Credit Name

CRN

IRN

Advanced Manufacturing Investment [IRC 48D(d)]

455

951

Alternative Fuel Vehicle Refueling Property

456

953

Renewable Electricity Production for Qualified Facilities placed in service after December 31, 2022

457

949

Carbon Oxide Sequestration for Qualified Facilities from equipment placed in service after December 31, 2022

458

956

Zero-Emission Nuclear Power Production

459

954

Clean Hydrogen Production Credit for facilities placed in service after December 31, 2012

460

950

Qualified Commercial Clean Vehicles but only for specific tax-exempt entities. Terminated by OB3 for vehicles acquired after September 30, 2025.

461

957

Advanced Manufacturing Production

462

947

Clean Electricity Production Credit

463

958

Clean Fuel Production Credit

464

952

Clean Energy

465

959

Qualifying Advanced Energy Project

466

948

Clean Electricity Investment

467

955

The following are three credits for which taxpayers (including individuals) that are non-applicable entities are also eligible to make an EPE:

Credit Name

CRN

IRN

Carbon Oxide Sequestration for Qualified Facilities

458

956

Clean Hydrogen Production

460

950

Advanced Manufacturing Production

462

947