The Internal Revenue Service (IRS) and the U.S. Treasury Department have announced new rules to broaden access to tax credits for certain types of co-owned projects, with the aim of accelerating the buildout of the clean energy economy.

The final regulations allow entities like state and local governments, tribal organizations, and non-profits to access clean energy tax credits through elective pay, also known as direct pay, according to a notice jointly issued by the two agencies on Nov. 19. Elective pay allows eligible entities and organizations to reap the full benefit of clean energy incentives by converting certain clean energy tax credits into refundable payments....