Law360 Quotes Shariff Barakat on Treasury’s 'Excessive Transfer Rules'

For its article “4 Lingering Issues In Green Energy Credit Monetization Rules,” Law360 quoted Akin projects & energy transition partner Shariff Barakat. The article discusses the Treasury Department’s release of proposed rules on new ways to monetize clean energy tax credits.

Law360 writes that buyers or transferees of the tax credits are liable for situations in which the sale or transfer of these credits exceeds the amount available for the transaction. This, it notes, is known as an “excessive credit transfer.” Shariff said that the excessive transfer rules are broad and do not explain the reasons a transfer might be considered excessive: “The rules just say, ‘if it was more than it should have been, it's potentially excessive credit transfer’.”

He added that the proposed rules’ silence on excessive credits raises other questions, including what kind of due diligence the buyer should undertake in order to obtain an exception.