Since the passage of the Inflation Reduction Act (IRA) and its many climate and clean energy provisions, those interested in clean energy have been anxiously awaiting more detailed technical guidance required for the precise use of the Act’s expanded tax incentives.

On Oct. 5, the Biden administration officially took the first public step in assuaging this collective anxiety by publicly releasing a series of IRS Notices asking for public input on such guidance.

The Treasury Department and IRS have issued six individual Notices, each seeking comment on a number of the incentives.

IRS notices by topic:

• Energy Generation Incentives
• Credit Enhancements
• Incentives for Homes and Buildings
• Consumer Vehicle Credits
• Manufacturing Credits
• Credit Monetization

Responses can be submitted electronically or by mail, with filing instructions contained within each of the Notices.

According to the accompanying Fact Sheet, comments are encouraged as soon as possible, “ideally within 30 days of issuance (by Nov. 4),” but later responses will still be accepted.

Note that these Notices do not count as the guidance that would initiate the 60-day period in the prevailing wage and apprenticeship requirements applicable to certain Act provisions. “The Treasury Department and the IRS will explicitly identify when they have published guidance with respect to the prevailing wage and apprenticeship requirements that is relevant for determining whether such requirements have been satisfied,” the Notices state.

For more information, see the Treasury’s release.

Contact

Lee J. Peterson, JD, Senior Manager

404.847.7744

Anton Cohen, CPA, Partner, Renewable Energy Industry and Project Finance and Consulting Practice Leader

301.280.1822

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