Elective Payment of Applicable Credits (Direct Pay)

§ 6417. Elective payment of applicable credits(a) In generalIn the case of an applicable entity making an election (at such time and in such manner as the Secretary may provide) under this section with respect to any applicable credit determined with respect to such entity, such entity shall be treated as making a payment against the tax imposed by subtitle A (for the taxable year with respect to which such credit was determined) equal to the amount of such credit. (b) Applicable creditThe term “applicable credit” means each of the following:(1) So much of the credit for alternative fuel vehicle refueling property allowed under section 30C which, pursuant to subsection (d)(1) of such section, is treated as a credit listed in section 38(b). (2) So much of the renewable electricity production credit determined under section 45(a) as is attributable to qualified facilities which are originally placed in service after December 31, 2022. (3) So much of the credit for carbon oxide sequestration determined under section 45Q(a) as is attributable to carbon capture equipment which is originally placed in service after December 31, 2022. (4) The zero-emission nuclear power production credit determined under section 45U(a). (5) So much of the credit for production of clean hydrogen determined under section 45V(a) as is attributable to qualified clean hydrogen production facilities which are originally placed in service after December 31, 2012. (6) In the case of a tax-exempt entity described in clause (i), (ii), or (iv) of section 168(h)(2)(A), the credit for qualified commercial vehicles determined under section 45W by reason of subsection (d)(3) thereof. (7) The credit for advanced manufacturing production under section 45X(a). (8) The clean electricity production credit determined under section 45Y(a). (9) The clean fuel production credit determined under section 45Z(a). (10) The energy credit determined under section 48. (11) The qualifying advanced energy project credit determined under section 48C. (12) The clean electricity investment credit determined under section 48E. (c) Application to partnerships and S corporations(1) In generalIn the case of any applicable credit determined with respect to any facility or property held directly by a partnership or S corporation, any election under subsection (a) shall be made by such partnership or S corporation. If such partnership or S corporation makes an election under such subsection (in such manner as the Secretary may provide) with respect to such credit—(A) the Secretary shall make a payment to such partnership or S corporation equal to the amount of such credit, (B) subsection (e) shall be applied with respect to such credit before determining any partner’s distributive share, or shareholder’s pro rata share, of such credit, (C) any amount with respect to which the election in subsection (a) is made shall be treated as tax exempt income for purposes of sections 705 and 1366, and