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IRS Safe Harbor Eases Path for Domestic Content Bonus Tax Credits

IRS Notice 2024-41 provides taxpayers with a clearer path toward qualifying for domestic content bonus tax credits through a new elective safe harbor....more

Federal Agencies Provide Guidance on Clean Vehicle Tax Credit Eligibility

Proposed regulations clarify FEOC restrictions and clean vehicle tax credit compliance for manufacturers aiming to produce eligible EVs. As countries around the world accelerate the transition to clean energy, the race to...more

After the IRA - A New Financing Landscape

As we pass the first anniversary of the Inflation Reduction Act, the project finance markets are beginning to coalesce around novel financing structures designed to make optimal use of the new tax credit subsidies that the US...more

IRS Proposed Rules Explain How Taxpayers Can Buy and Sell Renewable Energy Tax Credits or Receive Cash Refunds

The proposed rules for monetizing tax credits should catalyze energy transition markets and offer an alternative to tax equity transactions. On June 14, 2023, the IRS issued proposed rules for how it intends to administer...more

IRS Issues Initial Rules for Domestic Content Bonus Tax Credits

IRS Notice explains how a renewable energy project may qualify for bonus tax credits by using American-made components. Key Points: ..All project components made primarily of steel or iron that perform a structural...more

IRS Clarifies Rules for Energy Community Bonus Tax Credits

The Notice enables developers and investors to more easily determine the Energy Community status of projects. Key Points: ..The IRS and the Treasury Department have provided tables to assist in determining eligibility...more

Biden Signs Climate Bill With Transformative Changes to Clean Energy Tax Incentives

The Inflation Reduction Act ushers in the largest clean energy tax credit package in US history. Key Points: • Wind and solar tax credits receive a multi-year extension at full rates, and solar projects are eligible...more

Key Senators Agree to Significantly Expand Tax Incentives for Clean Energy

The Inflation Reduction Act, which includes the most dramatic expansion of clean energy tax credits in recent history, would provide a multi-year extension of existing tax credits for wind and solar, increase tax credits for...more

IRS Clears the Way for Retrofitted Carbon Capture Projects

In a new Revenue Ruling, the IRS addresses the scope, ownership, and placed-in-service date for carbon capture equipment. Key Points: ..Developers adding carbon capture equipment to an existing industrial facility now...more

Treasury Finalizes Carbon Capture Tax Credit Regulations

The US Treasury Department and the IRS provided practical administrative rules for the carbon capture and sequestration tax credit. Key Points: ..The IRS finalized the third set of rules in a series of regulatory guidance...more

COVID-19 Tax Relief Package Extends Renewable Power and Carbon Capture Tax Credits

Congress extends tax credits for certain renewables, and expands tax credits for offshore wind and waste energy recovery. Key Points: ..Production tax credits for onshore and offshore wind projects are extended at a 60%...more

Future of Carbon Capture Looks Bright After Treasury Proposes Long-Awaited Regulations

The Treasury Department and the IRS provided practical administrative rules for the carbon capture and sequestration tax credit. Key Points: ..These rules are the third in a series of regulatory guidance issued by the IRS...more

Proposed IRS Guidance on Carbon Capture Tax Credits

Market participants can comment on new details related to the requirements, time periods, and permitted transfers of carbon credits. On May 28, the IRS released the long-awaited third piece of carbon capture tax credit...more

Carbon Capture Industry Receives Long-Awaited 45Q Tax Credit Guidance

The IRS addressed key commercial and technical issues regarding the development and financing of carbon capture and sequestration projects. Key Points: ..The IRS released the first two of three anticipated guidance...more

New Law Extends Tax Credits For Wind and Other Renewable Power Plants

A favorable outcome for wind and other renewable projects, but solar and storage are left out. Key Points: ..Qualifying wind projects on which construction begins after December 31, 2019 and before January 1, 2021 will...more

Carbon Capture Industry Poised for Growth Following Anticipated 45Q Guidance

IRS seeks comments on key technical questions under the 45Q Credit regime that should spur industry growth. Key Points: ..The 45Q Credit, which was significantly broadened in 2018, provides a tax credit for each metric...more

IRS Issues Welcome Guidance on “Continuity Safe Harbor” for Wind Energy Projects

New rules provide wind developers with additional time to satisfy a critical safe harbor. On December 15, 2016, the Internal Revenue Service (IRS) issued Notice 2017-4, which modifies the “continuity safe harbor” as set...more

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