IRS Clean Energy Portal: 3 Steps to Register Your Project

Registration is a critical step allowing you to receive direct payment or to sell your tax credits to corporate buyers—a valuable way to obtain immediate liquidity that was made possible through the Inflation Reduction Act (IRA). 

Registering your project with the IRS clean energy portal can be a detailed process that should be done in consultation with your company’s tax preparer or tax lawyer. When it launched in 2023, the Internal Revenue Service (IRS) released a 73-page user guide and instructions document to support developers. In this article, we provide an easy-to-read summary that answers your questions and breaks down the how, when, and why of the IRS energy credits online portal.

What is the IRS clean energy portal?

The IRS clean energy portal, officially known as the IRA/CHIPS Pre-Filing Registration Tool, is the online system that clean energy developers use to register their projects. It’s the only place you can register your project and allows you to get a unique registration number that is required to either receive direct payment or to transfer your credits to another entity. 

You can access the IRS energy credits online portal here.

How do I register through the portal?

While registering your project with the IRS clean energy portal is not particularly difficult, it does require some prep work and a couple critical steps. Here’s an overview of the process:

1. Sign in or create an account

If you’re a first-time user, you’ll need to create a new account with ID.me. To do so, make sure to have your photo ID ready to verify your personal identity (not your company’s information). If you already have an ID.me account, simply sign in to access the IRS clean energy portal.

2. Authorize your account

To access your organization’s online energy credits account, you must ensure that you’re an authorized representative. To do this, select “start authorization.” 

Once you’re an authorized user, you can access your organization’s account for the first time. The first time you sign in on behalf of an entity, you’ll need its employer ID number (EIN), as well as your personal name and address as they appear on your most recent tax return.

3. Get started with the IRS clean energy portal

Once your organization is authorized, you can get started through your prefiling registration dashboard. Select the “register” button to follow the prompts and enter the necessary information for your credits. All registrants must complete the general information section, which includes the tax period of the election, EIN, information about any subsidiaries, name, address, type of entity, bank account information, and types of returns filed. 

Other data and documentation will vary depending on the type of credits that your organization will collect — whether that’s 45X, 45Y, or 48E. However, some questions that are common to multiple credits include the choice of election, the dates when construction began and when the project was placed in service, and the source of funds.

For a full list of the information required under each credit, visit the IRS’s guidebook here.

One important thing to remember is that each registrant can only have one registration package for a taxable year, though this can pertain to as many payments or transfers that the registrant is eligible for. The number of registration numbers you’ll need to request will also depend on how the credits need to be reported on the source credit form and Form 3800.

When should I register through the IRS energy credits online portal?

When submitting your pre-filing registration, you should allow for ample time for the IRS to review your information. Currently, the IRS requires you after an investment property or production facility is placed in service. At the same time, the IRS also suggests registering at least 120 days before the due date for the tax return that you will report your credits on.

Note: Once you submit your registration package, you’ll be locked out from making any revisions or additions, so be sure that all the information you enter is accurate and up-to-date. The IRS says to never use the EIN of another taxpaying entity, even if it is closely related to the registering organization.

How long will it take to get my registration number?

While the timing varies, we’ve seen registrations take between two and six weeks, with some taking longer if there are questions about the energy property, the taxpayer’s ownership structure or other items that require follow up. 

Once the review of your registration is complete, the status will appear as either “returned — open” or “returned — closed.” The former will appear when each of the registration numbers requested have been issued or when fewer than all registration numbers were issued and no additional information was provided within 35 days of the date indicated in the reviewer’s comments. The latter message will appear when no or fewer than all registration numbers were issued, and you have 35 days from the date indicated to provide additional information or to correct errors that led to the non-issuance of the registration numbers.

Why do I need to get a registration number?

The IRS has established the IRA/CHIPS portal as a way of tracking and providing preliminary confirmation of a credits existence. This decreases the likelihood of fraudulent credits transferring, and therefore provides tax credit buyers more confidence in the legitimacy of the credits. 

When selling tax credits, buyers will need your project’s registration number from the IRS energy credits online portal. That’s because both buyers and sellers are required to submit a Transfer Election Statement with the registration number along with their yearly tax filings and IRS form 3468 for ITCs  or 8835 for PTCs, which flow into a Buyer’s Form 3800 General Business Credit.

Entities that are looking to receive an elective payment must also include the registration number on their annual tax return.

Questions about registering your project or transferring your tax credit? Talk to our team, and we’ll guide you through the process.