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Silence.

This video explains how to use the Inflation Reduction Act and CHIPS Act Pre-filing Registration Tool for organizations and entities that want to make an elective payment election on a tax return.

Although the Pre-Filing Registration Tool is also used by businesses that want to transfer their credits, this program will focus on elective pay.

Please be aware that this information also applies to businesses that may decide to transfer certain credits.

Special rules added by the Inflation Reduction Act, or IRA, allow certain Applicable Entities, which may otherwise not be able to use a general business credit to take advantage of certain applicable credits.

The terms “Applicable Entity” and “Applicable Credit” have specific meanings under the IRA provisions.

Please refer to the resources provided at the end of this presentation for details.

These Applicable Entities can treat the Applicable Credits they earn (with qualifying investments or production activities) as a payment of tax and receive a refund (or direct payment) for the amount of overpayment.

To receive the refund, you must register through the Pre-filing Registration Tool.

You must register before you file your return so that you can include the registration number(s) on the return.

IRA enables Applicable Entities to make an elective payment election for certain clean energy credits.

The CHIPS Act similarly enables certain taxpayers (not limited to Applicable Entities as defined by IRA) to make an elective payment election for certain investments in silicon chip manufacturing technology.

Elective pay may also be informally referred to as direct pay.

This video will help you access and use the IRA and CHIPS Pre-filing Registration Tool so you can claim your clean energy credit on your return.

You should submit your pre-filing registration after the beginning of the taxable period when you will earn the credit.

To allow time for your registration to be processed, we suggest you submit your registration 120 days before the due date of the return used to report the credits.

To access the IRA/CHIPS Credits Pre-Filing Registration tool, go to IRS.gov and select “Sign into your account” from the panel of links in the middle of the page or search “Sign into your account” from the IRS.gov search tool, then navigate to “Sign into business tax account,” as shown here.

You will also be able to find the IRA/CHIPS Pre-Filing Registration tool at www.irs.gov/eptregister.

After you click on “Sign into business tax account,” you will see this screen.

You must have an ID.me account to create an Energy Credits Online (ECO) business tax account to access the IRA/CHIPS Energy Credits Online tools.

You must login to your ID.me account every time you wish to access the Energy Credits Online page on IRS.gov.

If you already have an IRS online services account, click on “Sign in with ID.me.” When you login to “Energy Credits Online” for the first time (and each time until you authorize one or more ECO Business Tax Accounts), you will see this page.

After you authorize at least one ECO Business Tax Account, you will bypass the online services page and will be taken to the Business Tax Account landing page.

If you don’t have an ID.me account, select “ID.me Create an account” and follow the on-screen prompts.

Note that ID.me has its own help site and assists taxpayers when creating their ID.me account.

Please don’t call an IRS customer account service telephone number for help with ID.me.

Currently, IRS Business Tax Account access and full functionality is available only to sole proprietorships.

The IRS is currently working to develop full access to business accounts other than sole proprietorships.

In the meantime, if you wish to access Energy Credits Online on behalf of a business that is not a sole proprietorship, you must authorize a Clean Energy Online Business Tax Account for each business.

From the landing page, select “Start Authorization.” Each person accessing the IRA/CHIPS Pre-Filing Registration tool for the first time on behalf of a business, a tax-exempt organization or a governmental entity (including a tribal government) must go through the four authorization steps.

The first step is your Business Authorization: Authorizing access for a business begins with identifying the entity by reference to its unique Employer Identification Number (or EIN).

Every business entity, exempt organization, state, local or tribal government and every instrumentality of any such government entity MUST have its own EIN unless it’s an entity disregarded for income tax purposes.

You should never use the EIN of another entity, even temporarily!

See Pub 1635 - Understanding Your EIN for more information.

If you don’t have an EIN, you should leave the registration page and apply for one at IRS.gov/EIN, then return to the Pre-Filing Registration tool to complete your registration.

Next is your Personal Information: Until full Business Online Account functionality is available, business authorizations will be connected to your personal ID.me account, so you must authorize a business by providing your personal name and address exactly as they appeared on your latest personal income tax return.

Step 3 is where you’ll enter your Business or Entity Information: Here, you’ll provide identifying information about the business entity, exempt organization, state, local or tribal government and every instrumentality of any such government entity for which you are creating an ECO Business Tax Account.

These online tools are new and are being refined as issues are identified.

On the day this program is being recorded, the online tool does not provide special entity-type categories for government entities.

Until the tool is updated, a “government entity” using the tool to authorize a Business Tax Account should please select “Nonprofit.” After the tool is updated, a government entity should select “government entity".

Note that you cannot change the legal name of the entity or its address during this authorization process.

The information you provide should be consistent with information in our records.

Note also that “entity type” and “title” are for informational purposes and are not matched against IRS records.

Finally, you must complete the Attestations: You’ll complete authorization of a business entity, exempt organization, state, local or tribal government and every instrumentality of any such government entity by making the attestations.

You’ll have an opportunity to review the information you provided before submitting the authorization.

Before you click “Submit,” you should carefully review the information you provided because it will be compared to information in IRS records.

Errors here may cause your attempt to authorize a business to fail.

Three consecutive failed attempts to authorize a business will cause your ID.me account to lock for 24 hours.

After you authorize at least one business, logging into your Business Tax Account through ID.me will take you directly to the business tax accounts/Clean Energy Online landing page.

This page you see will reflect the businesses you authorize.

From this landing page, you can authorize additional businesses by clicking “Add clean energy business account".

Be aware that you must create a separate account for each entity that you are authorized to act for and that entity needs to register its intention to monetize any CHIPS or IRA Credits with an elective payment election or a transfer election.

To navigate to a specific tool within Clean Energy, click on the tile for an authorized business.

Doing this will take you to the IRS Clean Energy landing page.

On the Clean Energy page, select “Get Started” under the title “Clean Energy and Semiconductor Manufacturers” to access the “CHIPS/IRA Credits” prefiling registration dashboard.

From the “CHIPS/IRA Credits” prefiling registration dashboard under “Email Notifications,” you can opt in to receive email notifications.

You’ll receive an email informing you any time the status of your registration submission changes.

For more information, see “Submission Status” in the User guide.

The email message will come from DoNotReply@account.irs.gov.

If you opt into email notifications, you may want to adjust settings in your email account to keep these notifications out of your spam folder.

After you have registered, you can also review your registration under “Your Registrations".

When you select “Register,” the Pre-Filing Registration tool will take you to the Registration Information page.

After you have entered all of the Registration Information and completed the General Information field, you can move to the Credit Selection module.

This slide shows the list of credits.

The roster of credits that will appear for each taxpayer will depend on the responses provided in the General Information section.

Note that Section 45Y, Clean Energy Production Credit, Section 45Z, Clean Fuel Production Credit and Section 48E, Clean Energy Investment Credit, will not be included for pre-filing registration until after December 31, 2024.

The information collected for each credit has been designed to reflect the requirements to qualify for the credit and has been limited to information relevant to each credit.

The purpose of pre-filing registration is to prevent duplication, fraud, improper payments, or excessive payments.

Information collected through the pre-filing registration process is designed to identify taxpayers that may not qualify to make an elective payment or transfer election with respect to any one or more of the IRA clean energy credit or to make an elective payment election for the CHIPS credit.

Issuance of a registration number does not mean that you have been determined to qualify for a credit of any specific amount.

In addition to registering for one of the credits, each taxpayer must compute and report the credit on the applicable source credit form and Form 3800.

You must attach those forms to your timely filed tax return.

The following resources will help you make an elective payment and claim certain clean energy credits.

To summarize the process, first you should access the Pre-Filing Registration Tool on IRS.gov then sign in with ID.me or create an ID.me account before completing the Business Authorization Steps.

Next, you’ll register your intent to make an elective payment or transfer election and move to the Credit Selection module.

Remember to submit your registration package early and understand that if you need to update or amend your registration package, you will need to resubmit it for a further review.

Thank you for your interest in the Inflation Reduction Act and CHIPS Act Pre-filing Registration Tool.