What is the purpose of the Domestic Content Bonus Credit?
The Inflation Reduction Act (IRA)[1] introduced the Domestic Content Bonus Credit to provide an additional credit amount to taxpayers that meet its requirements. The purpose of this bonus credit is to strengthen America’s domestic supply chain for clean energy construction materials. To receive the bonus credit from the Internal Revenue Service (IRS), taxpayers must certify that their qualified facility, energy project, or energy storage technology (collectively, “project”) is built using steel, iron, and a certain percentage of Manufactured Products that were mined, produced, or manufactured in the United States.[2]
As ING, a global European bank, noted in its review of the IRA, one year after its enactment, “the IRA is set to have a profound, long-term impact on the US. […] Through strict eligibility rules for the highest levels of tax credits, the IRA aims to strengthen the US domestic supply chain of raw materials used for low-carbon technologies, with EV and renewable energy tax credit guidelines incentivizing at least parts of the supply chain to reside in North America (originated, manufactured, assembled, or recycled). This move is to counter China’s dominance in the clean energy industry, as [China] now accounts for 77 percent of the global battery cell manufacturing capacity, 88 percent of solar PV manufacturing capacity, and an average of 50 percent of wind and electrolyser manufacturing capacity.”[3] As ING also noted, the structuring of Domestic Content Bonus Credits “are already leading EV manufacturers to explore vertically along the EV value chain.[…] General Motors (GM) announced a joint venture with mining company Lithium Americas to gain exclusive access to lithium from a mining site in Nevada,” and Ford Motors will “receive a $9.2bn loan from the Department of Energy (DOE), the largest single loan in the DOE Loan Program Office history, to develop battery plants in Tennessee and Kentucky.”[4]
Which tax credits can qualify to be increased by the Domestic Content Bonus Credit?
The Domestic Content Bonus Credit can apply to production tax credits (PTCs) under Sections 45 and 45Y (CEPTC) and investment tax credits (ITCs) under Sections 48 and 48E (CEITC).
How does the Domestic Content Bonus Credit become available to a project?
The Domestic Content Bonus Credit is available to a project that sources its steel, iron, and a specified percentage of its Manufactured Products from U.S. sources. As is discussed below, it provides to a qualified project a 10 percent increase to the credit for PTC-applicable credits and a 10 percentage-point bonus credit increase to ITC-applicable credits.
How do taxpayers ensure they meet their domestic content requirements?
Taxpayers can satisfy the domestic content requirements by certifying to the IRS that any steel, iron, or Manufactured Product that is a structural component in their energy project was produced in the United States. All structural steel or iron items must have U.S. manufacturing processes. A statutory minimum of the total costs of a project’s Manufactured Products must (1) use a U.S.-based manufacturing processes for all steel and iron “Applicable Project Components” that meet the Steel or Iron Requirement; and (2) ensure the statutorily set minimum amount of all Applicable Project Components (that make up Manufactured Products) are produced or (deemed to be produced) in the United States and meet the Manufactured Product Requirement.
Are there additional restrictions on the availability of the Domestic Content Bonus Credit?
Yes. Certain entities are allowed to elect “direct pay” from the government to receive cash for the value of specified tax credits. I discuss direct pay in greater detail in Part VIII of this Q&A with Andie. Direct pay is a unique aspect of the IRA. It carries with it highly prescriptive and specific requirements for domestic sourcing. In short, direct pay parties receiving the Domestic Content Bonus Credit can be subject to a phaseout of the credit if the related requirements are not met.[5]
Key terms & their definitions
The Domestic Content Bonus Credit requirements are met by complying with key terms—the precise definitions of which are critically important in qualifying for the Domestic Content Bonus Credit. Many of these terms are described below and synopses provided in Internal Revenue Bulletin: 2023-22 (May 30, 2023)[6] along with a specific caution from the IRS: “these synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.” We will try to help clarify these terms:
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Adjusted Percentage Rule
If all the Manufactured Products are not produced in the United States, the Adjusted Percentage Rule is applied to determine whether Manufactured Products that are classified as Applicable Project Components are deemed to be produced in the United States.
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Applicable Energy Percentage
The bonus credit percentage can vary based on the specific conditions met by the project, and the type of project.
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Applicable Project
(1) A qualified facility under a PTC-eligible project under Sections 45 or 45Y (CEPTC); (2) An energy project under Section 48; or (3) A qualified investment with respect to a qualified facility or energy storage technology under Section 48E (CEITC).
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Applicable Project Component
Any article, material, or supply (manufactured or unmanufactured) that is directly incorporated into an Applicable Project and that consists of steel, iron, or a Manufactured Product. Table 2 of Notice 2023-38[7] provides a non-exhaustive list of Applicable Project Components. Of course, Applicable Projects and Applicable Project Components described in the Notice 2023-38 Table 2[8] must also meet the statutory requirements for the relevant tax credit.
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Domestic Content Requirements
This applies to any steel, iron, or a Manufactured Product[9] that is a component of an Applicable Project.
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Domestic Cost Percentage
The percentage of domestic content required to meet the Domestic Content Bonus Credit varies over time and given specified conditions.
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Manufactured
Something that is produced as a result of a Manufacturing Process.
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Manufactured Product
An item produced as a result of the Manufacturing Process that alters the form or function of materials or of elements of a product that adds value and transforms those materials or elements so they represent a new item that is functionally different from that which would result from the mere assembly of the elements or materials. A Manufactured Product is produced in the United States if: (1) all the Manufacturing Processes for the Manufactured Product take place in the United States; and (2) all the Manufactured Product Components of the Manufactured Product are of a U.S. origin.
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Manufactured Product Component
An article, material, or supply (manufactured or unmanufactured) that is directly incorporated into an Applicable Project Component that is a Manufactured Product. A U.S. Manufactured Product Component is treated as manufactured or produced in the United States, without regard to the domestic or foreign origin of its subcomponents. A taxpayer must certify to the IRS that any steel, iron, or Manufactured Product that is a component of an Applicable Project is produced in the United States.
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Manufacturing Process
The application of processes to alter the form or function of materials or of elements of a product to add value and transform those materials or elements so that they represent an item that is functionally different from that which would result from mere assembly of the elements or materials.
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Steel and Iron Requirement
Any steel or iron that is a component of an Applicable Project that was produced in the United States. It applies to construction materials made primarily of structural steel or iron. It does not apply to steel or iron used in Manufactured Product Components or subcomponents. This means that “items such as nuts, bolts, screws, washers, cabinets, covers, shelves, clamps, fittings, sleeves, adapters, tie wire, spacers, door hinges, and similar items…are not subject to this steel or iron requirement.”[10]
How is a Manufactured Product produced?
A Manufactured Product is produced as a result of a Manufacturing Process. This statement may seem obvious, but sometimes it matters that we state the very obvious. A Manufactured Product is considered to be manufactured in the United States if not less than a “specified portion” of its total cost is mined, produced, or manufactured in the United States. At the start of the IRA’s Domestic Content Bonus Credit requirements, the statutorily specified portions are 40 percent for pre-IRA ITC credit-eligible-, and pre-IRA PTC-eligible projects.
When is a Manufactured Product produced in the United States?
Manufactured Products are produced in the United States if: all (1) Manufacturing Processes for the Manufactured Product takes place in the United States and (2) Manufactured Product Components meet the requirements for being of U.S. origin.
Do subcomponents need to be manufactured in the United States?
No. A Manufactured Product is treated as being of U.S. origin if it is manufactured in the United States, without regard to the origin of its subcomponents.[11] For these purposes, the domestic content of subcomponents is ignored. This percentage requirement increases over time.
How does a taxpayer meet the Manufactured Product Requirement?
The Manufactured Product Requirement is met in 2024 if not less than 40 percent of the total costs of all Manufactured Product Components of the facility are produced or manufactured in the United States (Adjusted Percentage Rule).[12]
What is the percentage requirement for Manufactured Product Components for 2024 and going forward?
For 2024 at least 40 percent of the cost of a completed project’s Manufactured Product Components must be produced in the United States. That required percentage amount increases annually up to 55 percent for construction beginning after 2027:
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In 2024: 40 percent must be domestic content
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In 2025: 45 percent must be domestic content
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In 2026: 50 percent must be domestic content
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In 2027: 55 percent must be domestic content
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In 2028 and thereafter: 55 percent must be domestic content
In this respect, the domestic compliance bar is set very low; in part by necessity because certain components of the clean energy industry domestic supply chain simply do not meet the domestic content requirements as I discussed in my introduction. The supply chain will never exist without focused efforts to sufficiently incentivize, develop, and commercialize this industry. This incentivization is a broader U.S. national priority as well because it is a national security concern regarding the effective operational transition to a clean energy economy.
How is the Adjusted Percentage Rule calculated?
The Adjusted Percentage Rule determines which Manufactured Products included in a project are treated as being produced in the United States, based on whether the Domestic Cost Percentage for that project equals or exceeds the applicable Domestic Content Adjusted Percentage. The calculation consists of four steps:
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The taxpayer will identify those Manufactured Products included in the project that are (a) U.S. Manufactured Products, (b) Non-U.S. Manufactured products, and (c) which components included in the project are U.S. components.
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These products and components will be identified in Notice 2024-41, Table 1, and the taxpayer will assign a Domestic Content Percentage value to each one.
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Then, the taxpayer adds up the Domestic Content Percentage values for every U.S. Manufactured Product and U.S. Manufactured Component that they have identified from their analysis of Table 1.
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The taxpayer’s project is only eligible for the Domestic Content Bonus Credit if (a) all of the structural steel and iron is U.S. sourced, (b) the sum of all Domestic Content Values equals or exceeds the applicable Domestic Content percentage as is set by statute (starting at 40 percent; or at 20 percent for offshore wind projects), and (c) all other requirements of the Domestic Content Bonus Credit are met.[13]
Two safe harbors are provided for calculating the Adjusted Percentage Rule. The first is contained in Notice 2023-38 and requires taxpayers to calculate the direct costs (that is, labor and materials) attributable to producing Manufactured Product components.[14] This requires taxpayers to obtain these costs from any supplier of a Manufactured Product component. The second safe harbor is set out in Notice 2024-41. It provides a table for solar arrays, wind farms, and battery storage systems. Notice 2024-41, Table 1 lists the Applicable Project Component, which Manufactured Product components combine to form the Applicable Project Component, and assigns a cost to each Manufactured Product component. If the Manufactured Product is produced in the United States, then the taxpayer counts the assigned cost percentage towards the 40 percent threshold of the Adjusted Percentage Rule. The safe harbor is discussed in a little more detail later in this article.
How does a taxpayer calculate project components with both foreign and domestic sources?
Taxpayers should turn to Notice 2024-41, which provides a weighted average formula to calculate a single Assigned Cost Percentage for components listed in Table 1 of that Notice when the components have both foreign and domestic sources.
What is the calculation if all Manufactured Product Components are produced in the United States?
The taxpayer can include the production cost of the Manufactured Product in the total Domestic Product Cost Percentage. The Assigned Cost Percentage attributable to the production costs of a given Manufactured Product can be used if the components of the Manufactured Product are not listed in Notice 2024-41, Table 1 or if some of the components in Table 1 are not part of the Manufactured Product, provided the components listed in Table 1 that are parts of the Manufactured Product are mined, produced, or manufactured in the United States.
Can a taxpayer determine a single Domestic Cost Percentage if a project consists of both solar energy property and battery energy storage?
Yes. Notice 2024-41 provides a weighted average formula that taxpayers can use to determine a single Domestic Cost Percentage for a single project that consists of both solar photovoltaic and battery storage systems.
What government guidance is currently available to taxpayers?
Although we do not have Treasury Regulations at the date of this writing, the Treasury has announced that it intends to propose Domestic Content Bonus Credit Regulations. In the meantime, we can refer to several IRS Notices to see what the government is thinking.
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Notice 2024-41
Domestic Content Bonus Credit Amounts under the Inflation Reduction Act of 2022: Expansion of Applicable Projects for Safe Harbor in Notice 2023-38 and New Elective Safe Harbor to Determine Cost Percentages for Adjusted Percentage Rule
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Notice 2024-9
Statutory Exceptions to Phaseout Reducing Elective Payment Amounts for Applicable Entities if Domestic Content Requirements are Not Satisfied
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Notice 2023-38
Domestic Content Bonus Credit Guidance under Sections 45, 45Y (CEPTC), 48, and 48E (CEITC). Taxpayers can rely on Notice 2023-38[15] for Applicable Projects that begin construction within 90 days after the Treasury publishes proposed regulations in the Federal Register. Notice 2023-38 provides information needed to identify projects that qualify for the Domestic Content Bonus Credit. It also provides a Safe Harbor as to the classification of steel, iron, and Manufactured Products in various types of projects or storage technologies.
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Notice 2022-51
Request for comments on prevailing wage, apprenticeship, domestic content, and energy community requirements.
Safe Harbors
Why do taxpayers need a safe harbor in claiming the Domestic Content Bonus Credit?
It can be complicated and time consuming for a taxpayer to comply with the terms of the Domestic Content Bonus Credit. As John Podesta, Senior Adviser to the President for International Climate Policy noted when addressing the New Elective Safe Harbor, “Today’s new safe harbor approach will make it simpler for companies to take advantage of this powerful incentive and support good-paying American jobs.”[16]
Taxpayers can refer to Notice 2023-38,[17] which provides information on the Safe Harbor and a process for how to identify Applicable Projects and their Manufactured Product Components that are subject to the Domestic Content Bonus Credit requirements. The Safe Harbor was modified by Notice 2024-41,[18] which provides a New Elective Safe Harbor to allow a taxpayer to determine project eligibility based on a pre-determined cost percentage set out by the IRS.
What is the Safe Harbor set out in Notice 2023-38?
Notice 2023-38 sets out a Safe Harbor. Table 2 of that Notice lists out various Applicable Projects that qualify for the Safe Harbor. The DOE assisted the IRS and the Treasury to evaluate certain Applicable Project Components typically found in wind, solar, and energy storage systems to determine whether to subject them to either the Steel and Iron Requirement or the Manufactured Products Requirement (Safe Harbor).[19] This evaluation included a review of the manufacturing processes involved in manufacturing Applicable Project Components. For example, under Notice 2023-38, a Manufactured Product that is an Applicable Project Component is considered to be produced in the United States if either: (1) it is manufactured in the United States and all Manufactured Product Components are manufactured in the United States; or (2) it is deemed to be produced in the United States because the Applicable Project, in the aggregate, meets the Adjusted Percentage Rule.
The New Elective Safe Harbor in Notice 2024-41 is based on the detailed list of Manufactured Product Components set out in Table 1 to make the Applicable Project Components for solar, land-based wind, and battery energy storage system projects. Cost percentages are specified for each of the Manufactured Product Components in Table 1. Under the New Elective Safe Harbor, the cost percentage specified by the IRS can be used to calculate the Domestic Cost Percentage and meet the Adjusted Percentage Rule. A taxpayer can elect to apply the classifications and cost percentages instead of using the manufacturer’s direct costs (as would have been required under the Adjusted Percentage Rule in the Notice 2023-38 Safe Harbor). As a result, Notice 2024-41 expands the list of applicable product components for three project types (solar, land-based wind, and battery energy storage systems) in a new Table 1. It provides cost percentages for key components and identifies applicable Manufactured Product Components that had not been included in Notice 2023-38. However, Notice 2024-41 states that taxpayers cannot mix and match the New Elective Safe Harbor with the Safe Harbor set out in Notice 2023-38. It is all or nothing.
What does the New Elective Safe Harbor add for taxpayers?
Notice 2024-41 acknowledged that modifications were needed to the Safe Harbor set out in Notice 2023-38 because it is challenging to calculate a manufacturer’s direct costs. The necessary calculations made it difficult for taxpayers to qualify for the Safe Harbor. To address this problem, the New Elective Safe Harbor calculates the domestic cost percentage under the Adjusted Percentage Rule. It does not require a taxpayer to obtain direct cost data. Notice 2024-41, Table 1 identifies Applicable Project Components and assigns associated cost percentages for each of the identified Manufactured Products and underlying Manufactured Product Components (Assigned Cost Percentages).
The New Elective Safe Harbor provides guidance as to when a project’s Manufactured Products meet the minimum percentage needed to meet the Domestic Content Requirements for Manufactured Products. It expands the list of Applicable Projects set out in the Notice 2023-38 Safe Harbor, and it provides the New Elective Safe Harbor to determine cost percentages for the Adjusted Percentage Rule.[20]
Each item described in Notice 2023-38, Table 2 (as revised by Notice 2024-41) is subject to either the Manufactured Product Requirement or the Steel or Iron Requirement.[21] Notice 2024-41 expands Notice 2023-38, Table 2 to include components of hydropower and pumped hydropower storage facilities. It redesignates the “utility-scale photovoltaic system” Applicable Project as the “Ground-mount and rooftop photovoltaic system” so that Table 2 now includes both utility-scale and smaller-scale solar projects.
How does a taxpayer calculate the New Elective Safe Harbor?
To calculate the Domestic Cost Percentage under the Adjusted Percentage Rule to see if the total percentage equals or exceeds 40 percent, it is necessary to determine which Manufactured Product Components are domestic and then add together the Assigned Cost Percentages for each of the U.S. Manufactured Product Components.
Taxpayers using the New Elective Safe Harbor can add up the Assigned Cost Percentages for each listed U.S. Manufactured Product used in the Applicable Project. This total value is the Domestic Cost Percentage. An Applicable Project is not required to include the full list of Applicable Project Components provided in Table 1. This means that taxpayers can rely on the New Elective Safe Harbor even if entries in Table 1 are not used as inputs in their Applicable Projects, or if their Applicable Project contains additional inputs that are not listed in Table 1. In addition, if all the Manufactured Product Components that are applicable to the taxpayer’s project are made in the United States, the taxpayer may also include the assigned “production” percentage to the total percentage.
The Manufactured Product Components and the cost percentages listed in Table 1, however, are the exclusive and exhaustive set of Manufactured Product Components used to determine compliance with the Domestic Content Requirements (that is, that may contribute domestic percentages to the numerator of the domestic cost percentage calculation under the Adjusted Percentage Rule). Unlisted items do not count toward the Adjusted Percentage Rule.
Are there other relevant rules related to the New Elective Safe Harbor?
Yes. A taxpayer must treat Manufactured Product Components that are not listed in Table 1 of the Notice as having zero value in calculating the Adjusted Percentage Rule. If a Manufactured Product or a Manufactured Product Component is sourced from both foreign and domestic sources, a weighted average formula is used to determine the Assigned Cost Percentage. If multiple units of a particular finished Manufactured Product Component are sourced from two different countries, the assigned percentage for that component is split between the non-U.S. country and the United States, with only the U.S. portion included in the numerator. The rule does not split the percentage for a Manufactured Product Component based on the origin of the U.S. and non-U.S. subcomponents. The weighted average is based on the nameplate capacity of the Manufactured Product or Manufactured Product Component, and if they do not have one, the nameplate capacity of the Applicable Project Component into which that item is directly integrated or utilized.[22] It is important to note that the Domestic Content Requirements are modeled after the Buy America Requirements in Section 661 of Title 49 of the Code of Federal Regulations.[23] Taxpayers may therefore find it helpful to analyze rulings issued by other federal agencies that address whether a Manufactured Product component was, or was not, manufactured in the United States.
How does a taxpayer elect the New Elective Safe Harbor?
To elect the New Elective Safe Harbor, a taxpayer must notify the IRS of the election and provide the required information on a “Domestic Content Certification Statement.” The classifications and cost percentages set out in the New Elective Safe Harbor must be used to calculate the Adjusted Percentage Rule.
In addition, an Applicable Project must use the components and cost percentages listed in Table 1 posted in Notice 2024-41. Table 1 provides the list of project components and Manufactured Product Components to determine if the project qualifies for the bonus credit. A taxpayer can elect the New Elective Safe Harbor if the components set out in Table 1 are not used in the project or the project has components that are not listed in Table 1. In this situation, the taxpayer calculating the Domestic Cost Percentage will treat the component as having a zero value. Components that are not listed do not count in meeting the Adjusted Percentage Rule.
Process and Documentation Technicalities
Which items must a project certify to demonstrate compliance with the requirements of the Domestic Content Bonus Credit?
A taxpayer meets the Domestic Content Requirement by certifying to the IRS that: (1) any steel or iron that is a component of an Applicable Project[24] is produced in the United States (Steel and Iron Requirement) and (2) all Applicable Project Components that are Manufactured Products are produced in the United States, or are deemed to be produced in the United States (Manufactured Products Requirement).
How can a taxpayer claim this credit?
The taxpayer must attach a Domestic Content Certification Statement to a Form 8835, Renewable Electricity Production Credit, for claiming a bonus credit from a PTC-eligible project, or a Form 3468, Investment Credit, for claiming a bonus credit from an ITC-eligible project. This form must be filed with the taxpayer’s annual tax return for the first year the taxpayer reports the Domestic Content Bonus Credit amount. When the taxpayer is claiming a PTC on Form 8835, a copy of the certification statement must be attached to the tax return for each additional taxable year when the credit is claimed.[25]
Can an Applicable Project obtain an exception from the Domestic Content Requirements?
Yes. The Treasury can provide exceptions to the Domestic Content Requirement under two conditions. First, an exception can be granted if compliance would increase the cost of construction by 25 percent. Second, an exemption can be granted if the needed materials are not produced in the United States in sufficient enough quantities or with the appropriate quality.
The firm extends gratitude to Nicholas C. Mowbray for his comments and exceptional assistance in the preparation of this article.
[1] The Inflation Reduction Act of 2022, Pub. L. No. 117-169, 136 Stat. 1818 (2022) (IRA), August 16, 2022.
[2] “Domestic Content Bonus Credit,” IRS, https://www.irs.gov/credits-deductions/domestic-content-bonus-credit
[3] “One Year On: America’s Inflation Reduction Act Is Closer to Reshaping the U.S. Clean Energy Industry,” ING, https://think.ing.com/opinions/one-year-later-inflation-reduction-act-is-closer-to-reshaping-the-us-clean-energy-industry.
[4] Ibid. p.8.
[5] For a discussion of the direct pay election, along with the specific implications for these project owners’ domestic sourcing requirements, please see Part VIII of this series, Monetizing Energy Tax Credits.
[6] Notice 2023-38, IRS, available at https://www.irs.gov/irb/2023-22_IRB#NOT-2023-38
[7] Notice 2023-38, IRS, May 12, 2023, available at https://www.irs.gov/pub/irs-drop/n-23-38.pdf.
[8] Ibid.
[9] As per the description in Notice 2023-38, § 3.01(2)(c).
[10] Notice 2023-38, IRS, May 12, 2023, available at https://www.irs.gov/pub/irs-drop/n-23-38.pdf.
[11] Ibid.
[12] Sections 45(b)(9)(B)(iii) and (C). For production tax credits under CEPTC, the 40 percent threshold increases and is capped at 55 percent for qualified facilities the construction of which begins after 2026. For investment tax credits under CEITC, however, there is no incremental increase, and the percentage remains at 40 percent.
See Sections 45Y(g)(11)(C) and 48E(a)(3)(B).
[13] Sections 3.03 (2)(b) and (c) of Notice 2023-38. The total cost of all Manufactured Products is the sum of the direct costs of each Applicable Project Component that makes up a Manufactured Product.
[14] The Notice defines “components cost” by reference to Treas. Reg. § 1.263A-1(e)(2)(i). The Notice specifically excludes direct costs of incorporating the Applicable Project Components into the Applicable Project, which presumably is intended to cover the costs to assemble and install Applicable Project Components into an Applicable Project.
[15] Notice 2023-38, IRS, May 12, 2023, available at https://www.irs.gov/pub/irs-drop/n-23-38.pdf.
[16] “U.S. Department of the Treasury, IRS Release Additional Guidance to Boost American Clean Energy Manufacturing,” Treasury, May 16, 2024, available at https://home.treasury.gov/news/press-releases/jy2344
[17] Notice 2023-38, IRS, May 12, 2023, available at https://www.irs.gov/pub/irs-drop/n-23-38.pdf.
[18] IR-2024-140, IRS, May 16, 2024, available at https://www.irs.gov/newsroom/irs-provides-guidance-for-the-domestic-content-bonus-credit.
[19] Notice 2023-38, Section 3.04.
[20] Notice 2024-41 modifies Sections 3.03(2)(b) and (c) and Section 3.04 of Notice 2023-38. “Domestic Content Bonus Credit Amounts under the Inflation Reduction Act of 2022: Expansion of Applicable Projects for Safe Harbor in Notice 2023-38 and New Elective Safe Harbor to Determine Cost Percentages for Adjusted Percentage Rule,” IRS, available at https://www.irs.gov/pub/irs-drop/n-24-41.pdf.
[21] These items are based on the Federal Transit Authority’s analysis and will be accepted by the IRS as Applicable Project Components or Manufactured Product components.
[22] Nameplate capacity is the intended full-load sustained output of a facility.
[23] 49 CFR Part 66, 1 last amended August 23, 2024. available at https://www.ecfr.gov/current/title-49/subtitle-B/chapter-VI/part-661
[24] Section 45(b)(9)(B)(i).
[25] “Domestic Content Bonus Credit Amounts under the Inflation Reduction Act of 2022: Expansion of Applicable Projects for Safe Harbor in Notice 2023-38 and New Elective Safe Harbor to Determine Cost Percentages for Adjusted Percentage Rule,” IRS, available at https://www.irs.gov/pub/irs-drop/n-24-41.pdf.
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