2026-03294Notice

IRS Wants Feedback on Tax-Free Energy Grant Paperwork Hassles

Published Date: 2/19/2026

Notice

Summary

The IRS wants your thoughts on how it collects info about energy grants and special energy loans that don’t get taxed. If you’re involved with these energy deals, this is your chance to help make the process easier and clearer. Send your comments by April 20, 2026, so the IRS can keep things fair without adding extra hassle or costs.

Analyzed Economic Effects

3 provisions identified: 0 benefits, 3 costs, 0 mixed.

Form 6497 Filing Requirement

If you administer a Federal, state, or local program that provides nontaxable energy grants or subsidized energy financing, you must make an information return under Internal Revenue Code section 6050D using Form 6497. The form (OMB Control No. 1545-0232) is used by the IRS to report those payments.

Estimated Reporting Time Burden

The IRS estimates 250 responses for Form 6497 with an average time of 3 hours and 14 minutes per response, totaling an estimated 810 annual burden hours. This is an extension of a currently approved collection (no change).

IRS Verification of Recipient Benefits

The IRS will use information reported on Form 6497 to ensure recipients of nontaxable energy grants or subsidized energy financing have not claimed tax credits or other benefits with respect to those grants or financing. The requirement comes from Internal Revenue Code section 6050D.

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Key Dates

Published Date
Comments Due
2/19/2026
4/20/2026

Department and Agencies

Department
Independent Agency
Agency
Treasury Department
Internal Revenue Service
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