Mintz
Summary
On Friday, May 12, 2023, the Department of Treasury (Treasury) and the Internal Revenue Service (IRS) issued Notice 2023-38 (the Notice) providing guidance regarding qualification for the domestic content bonus credit, which was added by the Inflation Reduction Act of 2022 (IRA), and is available to certain renewable energy projects that qualify for the production tax credit (PTC) and investment tax credit (ITC) if the project satisfies the domestic content requirements.
The domestic content bonus credit provision of the IRA provides a 10% tax credit boost for clean energy developers of and investors in qualified facilities that are PTC- or ITC-eligible (or both) or energy generation or storage projects (Applicable Projects) that can certify that all of their iron and steel, and, subject to the Adjusted Percentage Rule (discussed below), all of the manufactured products that are components of their projects, are made in America (the Domestic Content Bonus Credit). The Notice provides important guidance that the Treasury and the IRS intend to include in proposed Treasury Regulations regarding the requirements that taxpayers must satisfy to qualify for the Domestic Content Bonus Credit (the Domestic Content Requirements) and the related recordkeeping and certification requirements.
Continue Reading
#News#IRS#Infrastructure