The U.S. Department of the Treasury and the Internal Revenue Service have issued proposed regulations to provide guidance for the advanced manufacturing production credit established by the Inflation Reduction Act (IRA).
The new Section 45X provides a credit for the production (within the United States) and sale of certain eligible components, including solar and wind energy components, inverters, qualifying battery components and applicable critical minerals.
The proposed regulations affect taxpayers who produce and sell eligible components and intend to claim the credit.
The guidance provides rules for the production of eligible components and sale to unrelated persons, as well as special rules that apply to sales between related persons. The proposed regulations also include rules for a taxpayer to make an election to treat sales to related persons as made to unrelated persons, known as the “related person election.”
Finally, the proposed regulations provide definitions of eligible components, rules related to calculating the credit, as well as specific recordkeeping and reporting requirements.
“Today’s guidance is a critical next step for U.S. manufacturers as they work to make announced facilities a reality,” says American Clean Power Association Chief Advocacy Officer JC Sandberg. “By creating and expanding supply chains to make clean energy technologies here at home, we will strengthen America’s energy security, create good-paying American jobs, and boost the nation’s economy.”
More information about IRA guidance can be found on the Inflation Reduction Act of 2022 page on IRS.gov.
The post IRS Proposes Guidance for Solar Manufacturing Production Credit appeared first on Solar Industry.
IRS Proposes Guidance for Solar Manufacturing Production Credit
Renewable Energy
ACORE Statement on Treasury’s Safe Harbor Guidance
ACORE Statement on Treasury’s Safe Harbor Guidance
Statement from American Council on Renewable Energy (ACORE) President and CEO Ray Long on Treasury’s Safe Harbor Guidance:
“The American Council on Renewable Energy (ACORE) is deeply concerned that today’s Treasury guidance on the long-standing ‘beginning of construction’ safe harbor significantly undermines its proven effectiveness, is inconsistent with the law, and creates unnecessary uncertainty for renewable energy development in the United States.
“For over a decade, the safe harbor provisions have served as clear, accountable rules of the road – helping to reduce compliance burdens, foster private investment, and ensure taxpayer protections. These guardrails have been integral to delivering affordable, reliable American clean energy while maintaining transparency and adherence to the rule of law. This was recognized in the One Big Beautiful Act, which codified the safe harbor rules, now changed by this action.
“We need to build more power generation now, and that includes renewable energy. The U.S. will need roughly 118 gigawatts (the equivalent of 12 New York Cities) of new power generation in the next four years to prevent price spikes and potential shortages. Only a limited set of technologies – solar, wind, batteries, and some natural gas – can be built at that scale in that timeframe.”
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ABOUT ACORE
For over 20 years, the American Council on Renewable Energy (ACORE) has been the nation’s leading voice on the issues most essential to clean energy expansion. ACORE unites finance, policy, and technology to accelerate the transition to a clean energy economy. For more information, please visit http://www.acore.org.
Media Contacts:
Stephanie Genco
Senior Vice President, Communications
American Council on Renewable Energy
genco@acore.org
The post ACORE Statement on Treasury’s Safe Harbor Guidance appeared first on ACORE.
https://acore.org/news/acore-statement-on-treasurys-safe-harbor-guidance/
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