The U.S. Department of the Treasury and the IRS have released final rules for the Section 48 Energy Credit, providing clarity for clean energy project developers. This move aims to boost clean power production, strengthen the clean energy economy, and create jobs. The rules, informed by stakeholder feedback, clarify eligibility for various technologies like offshore wind and geothermal heat pumps. The Inflation Reduction Act's extension of the ITC until 2025, transitioning to a tech-neutral approach, is expected to enhance energy security and reduce utility bills.
The U.S. Department of the Treasury and IRS have released guidance on the Investment Tax Credit (ITC) to drive clean energy investments. The guidance provides clarity and certainty for companies planning clean energy projects, including offshore wind, battery storage, and small-scale projects connecting to the grid. The proposed rules also address eligibility for power conditioning equipment, interconnection-related property costs, and technical definitions. The Treasury and IRS will accept comments on the proposed rules for 60 days.
The US Treasury Department and IRS have released guidance on the Inflation Reduction Act, which provides a bonus of up to 10 percentage points on top of the Investment Tax Credit (ITC) and an increase of 10 percent for the Production Tax Credit (PTC) for clean energy projects and facilities located in communities that have driven and historically been at the forefront of energy production, including areas with closed coal mines or coal-fired power plants. The bonus is also available to areas that have significant employment or local tax revenues from fossil fuels and higher than average unemployment. The Treasury has partnered with the Interagency Working Group on Energy Communities to provide a searchable mapping tool that helps identify areas that may be eligible for the energy communities bonus.
The US Treasury Department and the Internal Revenue Service (IRS) have released a notice of proposed rulemaking for the Advanced Manufacturing Investment Credit (CHIPS ITC) established by the CHIPS Act of 2022. The proposed regulations aim to provide clarity and certainty to taxpayers, mobilizing key tax incentives for investments in facilities that manufacture semiconductors or semiconductor manufacturing equipment, helping to spur American job growth and bolster US economic prosperity and national security. The proposed regulations also define key terms for the credit, which is generally equal to 25% of an eligible taxpayer’s qualified investment in a facility with the primary purpose of manufacturing semiconductors or semiconductor manufacturing equipment and are integral to the operation of the facility.
