In February 2021, Winter Storm Uri hit Texas, resulting in severe electricity blackouts throughout the state. Commercial and industrial as well as residential retail customers across Texas sued hundreds of entities involved in the Texas electricity market for damages sustained due to the resulting electrical outages, including wholesale power generators. On Dec. 14, 2023, the
On Nov. 17, the IRS and Treasury Department released long-awaited proposed regulations for the Section 48 investment tax credit. Representing the first update to these regulations since 1987, they provide instructions reflecting new statutes under the Inflation Reduction Act of 2022, incorporate previous legislative changes and formally adopt administrative guidance the energy market has used…
On Oct. 19, 2023, the Department of Energy began accepting applications for all categories of the Low-Income Communities Bonus Credit Program for small-scale wind and solar projects. Read on for further details about the submission portal and the tax credit program.
On Sept. 29, the Supreme Court of Texas announced it will review a lower court’s reversal of two winter storm Uri orders in 2021 by the Public Utility Commission of Texas that raised power prices in the Electric Reliability Council of Texas, impacting countless companies and consumers. Read on to learn more about the latest…
On Aug. 29, the U.S. Department of the Treasury and the IRS proposed regulations and new guidance regarding the prevailing wage and apprenticeship (PWA) prerequisites associated with eligibility for full-value clean energy tax credits under the Inflation Reduction Act. Read on for an overview of the rules and guidance, which provide more certainty and greater…
The Inflation Reduction Act of 2022 extended and modified a federal investment tax credit for a broad variety of advanced energy manufacturing projects. The program relies on an application and award process to allocate the tax credits.
Read on for newly released details about the application process and technical guidance for the 48C program.
The Inflation Reduction Act of 2022 (IRA) created a 10% tax credit adder to encourage the use of “domestic content” in renewable projects that qualify for the production tax credit (PTC) and investment tax credit (ITC). Projects built using the required amounts of U.S.-produced steel, iron and manufactured products can receive a significant 10% increase to the credits. Taxpayers have been eagerly anticipating Treasury and IRS guidance on this credit adder since the IRA was signed into law in August 2022.Continue Reading Domestic Content 10% Bonus Guidance Released (IRS Notice 2023-38)
The application process for the first round of funding for the Section 48C credit will open May 31, 2023. The IRS will issue additional guidance on the program before the application process opens but the application window closes July 31, 2023, so interested taxpayers should prepare submissions now.Continue Reading Opening Soon — Application for Section 48C Advanced Energy Project Investment Tax Credit
The Inflation Reduction Act of 2022 (IRA) created several new tax incentives to encourage the development of clean energy projects that would benefit specific communities. Among these incentives, Congress included a tax credit adder for the production tax credit (PTC) and investment tax credit (ITC) for projects in “energy communities.” The energy community adder gives a 10% multiplier to a project’s PTC value and a potential 10% addition to the ITC rate. On April 4, 2023, the IRS released Notice 2023-29 to outline the rules for claiming the energy community enhanced tax credits under Internal Revenue Code Sections 45, 45Y, 48 and 48E.Continue Reading IRS Issues Guidance for Energy Community Bonus Tax Credits – Notice 2023-29
Direct pay and transferability for energy tax credits have been available since Jan. 1, 2023, but credit transactions using these provisions have been slow to materialize due to lack of Treasury or IRS guidance. On March 22, 2023, official Treasury Department remarks by Asst. Secretary for Tax Policy Lily Batchelder offered insights into that future guidance. Continue Reading Energy Credits — Treasury, IRS Promise Direct Pay and Transferability Registry and Guidance