The IRS on May 16, 2024, released Notice 2024-41, which modifies the existing domestic content safe harbor in Notice 2023-38. Importantly, Notice 2024-41:
- expands the previously announced safe harbor with respect to the categorization of Applicable Project Components to include additional project types, including hydropower and pumped hydropower storage facilities, and makes other adjustments to the safe harbor on categorization that was previously announced
- provides a new elective safe harbor for determining the domestic content bonus credit percentages under Sections 45, 45Y, 48 and 48E of the Internal Revenue Code and requests comments regarding the new elective safe harbor to inform the development of any future updates as it relates to costs
The Holland & Knight Energy Tax Team is reviewing the Notice and will provide additional analysis.
