Connect with us

Published

on

Treasury Department, IRS Release Additional Guidance on Domestic Content Bonus Credit 

WASHINGTON, D.C. – The U.S. Department of the Treasury and the Internal Revenue Service (IRS) released additional guidance today on the domestic content bonus tax credit. Following is a statement from Ray Long, President and CEO of the American Council on Renewable Energy (ACORE), on the guidance:

“We commend the Department of Treasury and IRS for issuing the domestic content guidance. Having clear rules of the road is critical for companies seeking to invest in America’s clean energy future, and today’s additional guidance on domestic content provides helpful clarity. Once successfully implemented, this bonus credit will help catalyze billions in private sector investment and thousands of good-paying jobs by boosting clean energy deployment and increasing the competitiveness of American-made products.  

“ACORE appreciates the improvements that were made to the initial guidance, which our analysis over the last year has shown should help facilitate a swift and sustained transition to domestic manufacturing. Of particular note is the amended safe harbor approach, which intends to remove unnecessary burdens on taxpayers by allowing them to reference default cost percentages. We also commend Treasury and the IRS for expanding the safe harbor classifications announced last year to include additional clean technologies, like hydropower, and for their plans to issue proposed guidance on projects that use elective pay. We look forward to further analyzing the impacts of the guidance on clean energy investment and deployment.”

Background:

ACORE submitted comments in response to the initial guidance concerning the domestic content bonus provision issued by Treasury and the IRS last May, which built from prior individual and joint comments on a range of pertinent issues.

##

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 renewable energy expansion. ACORE unites finance, policy, and technology to accelerate the transition to a renewable energy economy. For more information, please visit www.acore.org.

Media Contacts:
Alex Hobson
Sr. Vice President, Communications
American Council on Renewable Energy
hobson@acore.org | 202.830.3592 (o) | 202.594.0706 (c)

Dylan Helms
Manager, Communications
American Council on Renewable Energy
helms@acore.org | 202.935.6491 (o) | 727.290.8804 (c)

The post Treasury Department, IRS Release Additional Guidance on Domestic Content Bonus Credit  appeared first on ACORE.

https://acore.org/news/treasury-department-irs-release-additional-guidance-on-domestic-content-bonus-credit/

Continue Reading

Renewable Energy

Respect for One’s Executioner

Published

on

This from Sartre.

Great parallel to modern-day Trump supporters, who love their leader while they pay $5 for a gallon of gasoline.

Respect for One’s Executioner

Continue Reading

Renewable Energy

New ACORE Resource Breaks Down the Complexities of Energy Tax Equity Structures  

Published

on

New ACORE Resource Breaks Down the Complexities of Energy Tax Equity Structures  

WASHINGTON, D.C. – A new report from ACORE presents survey data from leading investors about the performance of tax equity structures and how they continue to play a significant role in financing clean energy projects.  

For more than two decades, tax equity has provided a stable private financing mechanism and an important source of capital for new clean energy projects in the United States. The U.S. clean energy industry now attracts over $45 billion in tax credit investments annually, of which more than $20 billion is provided by banks through tax equity arrangements. The report provides an expert look into how tax equity financing transactions are structured and the risks and returns associated with these deals.

Key takeaways from the report include:

  • Overwhelmingly Positive Returns: An ACORE survey representing over 75% of the tax equity market showed that these investors typically receive a median 8.4% return on current investments.
  • Minimal Downside Risk: Risks associated with recapture, foreclosure, and bankruptcy have been exceptionally low for tax equity investors.  
  • Demand for Tax Equity Exceeds Supply: Tax equity is responsible for between one third and two thirds of a clean energy project’s overall financing, and about 45% of tax equity is provided by banks through tax equity arrangements. Demand for tax equity will accelerate as investors look to finance energy storage and other eligible technologies that continue to qualify for tax credits.

“This report reflects ACORE’s commitment to delivering solid, impartial insights from the entire span of the clean energy industry,” said Ray Long, President and CEO of ACORE. “Getting clean energy tax policy right is the key to ensuring the United States is ready to deliver the power needed for tomorrow’s economy.”

The Risk Profile of Tax Equity Investments: 2026 Edition, is available in full on the ACORE website.  

###

About ACORE
ACORE is a nonpartisan nonprofit organization that operates at the intersection of affordability, reliability, and clean energy deployment. Our work is focused on stabilizing energy prices, strengthening the electric grid, and driving investment in cost-effective technologies to ensure that clean energy delivers for people, businesses, and the U.S. economy.

ACORE’s membership includes clean energy investors, developers, energy buyers, power generators, manufacturers, and energy providers. In 2024, nearly 80% of the booming utility-scale domestic clean energy growth was financed, developed, owned, equipped, or contracted by ACORE members. For more information, visit www.acore.org.  

Media Contacts:

Chris Higginbotham
higginbotham@acore.org

The post New ACORE Resource Breaks Down the Complexities of Energy Tax Equity Structures   appeared first on ACORE.

https://acore.org/news/new-acore-resource-breaks-down-the-complexities-of-energy-tax-equity-structures/

Continue Reading

Renewable Energy

An Economy that Works for Everyone

Published

on

Right-wingers, like the fellow shown here, tend to make broad and unfair generalizations about the left.

Progressives would like to see an economy that works for everyone, not just the uber-rich.  We want wealth creation for the people who need it most.

The best way to make this happen is strong, high-quality public education and universal healthcare.

These are not radical concepts; this is the way the vast majority of the developed world operates.

An Economy that Works for Everyone

Continue Reading

Trending

Copyright © 2022 BreakingClimateChange.com