The U.S. Department of the Treasury and Internal Revenue Service released additional guidance on the domestic content bonus provision enacted by the Inflation Reduction Act.
Wind Energy Technologies Office
May 16, 2024
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Today, the U.S. Department of the Treasury and Internal Revenue Service released additional guidance on the domestic content bonus provision enacted by the Inflation Reduction Act. For wind, solar, and other clean energy projects to receive the bonus, all their steel and iron products must be produced in the United States, and a minimum percentage of their manufactured products and components must also be produced in the United States.
To assist taxpayers in determining whether the minimum percentage of the costs of the manufactured products and components of manufactured products is met, this notice creates a new “elective safe harbor” that gives clean energy developers the option of relying on DOE-provided default cost percentages for an exhaustive set of manufactured products and their components for certain technologies instead of obtaining direct cost information from suppliers. The guidance also amends last May’s Notice to add safe harbor classifications for manufactured products, manufactured product components, and steel and iron products for additional technologies, including the addition of hydropower technologies, as well as to provide clarity for rooftop solar.