On June 20, 2024, experts from the U.S. Department of Treasury and U.S. Department of Energy hosted a webinar on the domestic content bonus provision in the Inflation Reduction Act (IRA). The webinar provides stakeholders from...
July 25, 2024
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On June 20, 2024, experts from the U.S. Department of Treasury and U.S. Department of Energy hosted a webinar on the domestic content bonus provision in the Inflation Reduction Act (IRA). The webinar provides stakeholders from the solar, wind, hydropower, and battery-electric storage industries an overview of how the recently released guidance from IRS and Treasury will make it easier for developers to determine if they can qualify for the domestic content bonus by purchasing products made with domestic components.
President Biden’s Inflation Reduction Act (IRA) is the largest investment in clean energy and combating the climate crisis in the nation’s history. Much of the investment for clean energy deployment is in the form of tax credits.
The domestic content bonus provides an additional 10 percent tax credit or 10 percentage points on top of the base clean energy generation Production Tax Credit and Investment Tax Credit, respectively, and also extends to the “technology neutral” investment and production tax credits beginning in 2025. The U.S. Department of Treasury and the Internal Revenue Service issued initial guidance on the domestic content bonus in May 2023 and provided additional guidance in January 2024 and May 2024.
Known as the “safe harbor guidance,” the May 2024 guidance makes it easier for clean energy developers to determine how much of their system is made domestically, which would make them eligible, for example, to receive a 10-percentage point bonus credit on top of the 30 percent investment tax credit already provided by the Inflation Reduction Act if prevailing wage and apprenticeship requirements are also met.
Speakers:
- Seth Hanlon, Deputy Assistant Secretary for Tax and Climate Policy, U.S. Department of the Treasury
- Eric Lantz, Director, Wind Energy Technologies Office, U.S. Department of Energy
- Elke Hodson, Deputy Director of Technology Policy, U.S. Department of Energy
- David Feldman, Senior Analyst, National Renewable Energy Laboratory, supporting the DOE Solar Energy Technologies Office and Office of Policy
This webinar provides an overview of certain Inflation Reduction Act (IRA) tax provisions for general informational purposes only and is not itself tax guidance.