Last week, the Department of the Treasury and the Internal Revenue Service released a notice of intent to issue proposed regulations on the domestic content bonus credit for certain clean energy projects. In this Legal Update, we’ll examine the proposed regulations, what taxpayers will need to do to reap the benefits, and the recordkeeping requirements
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US Treasury to Propose Regulations on Energy Community Bonus Adders
On April 4, 2023, the Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) released a notice of intent to issue proposed regulations on qualifying for the energy community bonus credit under Sections 45, 45Y, 48 and 48E (Notice). Pursuant to the Inflation Reduction Act that was passed last August, eligible taxpayers can
US Treasury Issues Proposed Regulations on Section 30D Clean Vehicle Credit
Electric vehicle and electric battery manufacturers and critical mineral producers will want to take note of a notice of proposed rulemaking (NPRM) on Section 30D of the Internal Revenue Code of 1986, as amended, released by the Department of the Treasury and the Internal Revenue Service on March 31, 2023. The NPRM provides further guidance
Guidebook to the IRA’s Clean Energy Provisions
The White House today released a new resource titled Building a Clean Energy Economy: A Guidebook to the Inflation Reduction Act’s Investments in Clean Energy and Climate Action, which it describes as “provid[ing] clear descriptions of the law’s tax incentives and funding programs to build a clean energy economy, lower energy costs, tackle climate change,
IRS Guidance on Electric Vehicles
IRS and Treasury today issued Revenue Procedure 2022-42, which includes procedures for manufacturers of electric vehicles eligible for tax credits under Section 30D, Section 25E and Section 45W. Here is a link to the Notice.
More on Prevailing Wage & Apprenticeship
As noted in yesterday’s post, the IRS published Notice 2022-61 regarding the prevailing wage & apprenticeship requirements. In addition, the Department of Labor yesterday issued two Frequently Asked Question (FAQ) documents: one on prevailing wage and the other one on apprenticeships. You’ll need to scroll down and click on the “+” signs to expand
The Clock Starts Now: IRS Issues Prevailing Wage & Apprenticeship Guidance under the IRA
The IRS has published a notice that will start the clock on the 60-day period respect to the applicability of the prevailing wage and apprenticeship requirements under numerous provisions of the Inflation Reduction Act of 2022 (the IRA). For a taxpayer to avoid application of the prevailing wage and apprenticeship requirements of the IRA, it
IRS Announces New PTC Rate under Section 45
The IRS today released Announcement 2022-23, which sets forth the new rate for the production tax credit (PTC) under Section 45 for facilities that are placed in service after December 31, 2021. The rate is 2.75 cents per kWh for a wind facility (i) with a maximum net output of less than 1 MW, (ii)
IRS Requests Comments on Additional Aspects of Energy Tax Credits
On November 3, 2022, the U.S. Internal Revenue Service (IRS) issued three additional notices requesting public input on key aspects of climate and clean energy tax provisions in the Inflation Reduction Act. Here is list of, and links to, these three notices.
- Notice 2022-56 requests comments related to the qualified commercial clean vehicles provisions under
IRS Requests Comments on Various Aspects of Energy Tax Credits
On October 5, 2022, the U.S. Internal Revenue Service (IRS) issued six notices requesting comments on various aspects of extensions and enhancements of energy tax benefits in the Inflation Reduction Act. Here is list of, and links to, the notices.
- Notice 2022-46 requests comments on credits for clean vehicles.
- Notice 2022-47 requests comments on energy