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)
Opening Soon — Application for Section 48C Advanced Energy Project Investment Tax Credit
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
IRS Issues Guidance for Energy Community Bonus Tax Credits – Notice 2023-29
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
Inflation Reduction Act Extends and Modifies Tax Credits for Solar Projects
On Aug. 16, 2022, President Joe Biden signed into law the Inflation Reduction Act of 2022 (IRA), which includes new and revised tax incentives for clean energy projects. This alert provides a summary of the IRA impact on solar energy tax credits, which were extended and significantly expanded. Additional alerts will provide summaries of the IRA’s impact on other clean energy technologies.Continue Reading Inflation Reduction Act Extends and Modifies Tax Credits for Solar Projects
Inflation Reduction Act Creates New Tax Credit Opportunities for Energy Storage Projects
On Aug. 16, 2022, President Joe Biden signed into law the Inflation Reduction Act of 2022 (IRA), which includes new and revised tax incentives for clean energy projects. This alert provides a summary of the IRA’s impact on tax credits for energy storage technologies, which were extended and significantly expanded. Additional alerts will provide summaries of the IRA focused on credits for other clean energy technologies.Continue Reading Inflation Reduction Act Creates New Tax Credit Opportunities for Energy Storage Projects
Department of Commerce Issues Final Rule Imposing Tariff Moratorium for Solar Panels
On Sept. 16, 2022, the Department of Commerce (DOC) issued its final rule effectuating a two-year moratorium on tariffs on certain solar cells and modules exported from Cambodia, Malaysia, Thailand and Vietnam.
As discussed in McGuireWoods’ June 7, 2022, alert, “President Biden Orders Tariff Exemption for Solar Panels,” President Biden’s Proclamation 10414 issued on June 6, 2022, declared an emergency and authorized the Secretary of Commerce to allow the importation of solar cells and modules exported from Cambodia, Malaysia, Thailand and Vietnam for up to two years.
Continue Reading Department of Commerce Issues Final Rule Imposing Tariff Moratorium for Solar Panels
U.S. Senate Introduces the Inflation Reduction Act
On July 27, 2022, U.S. Senate Majority Leader Chuck Schumer (D-N.Y.) and Sen. Joe Manchin (D-W.V.) introduced the Inflation Reduction Act of 2022, which proposes new and revised tax incentives for clean energy. The bill incorporates many, but not all, of the original proposals from last year’s Build Back Better Act.
Continue Reading U.S. Senate Introduces the Inflation Reduction Act
Webinar Replay: Offshore Wind Market Update and Supply-Chain Investment Opportunities
Did you miss our July 14, 2022 webinar?
McGuireWoods is organizing a series of webinars and events for utilities, private equity, independent sponsors, energy developers and other market participants pursuing energy investments in the North American offshore wind sector.
White House Launches Federal-State Offshore Wind Partnership to Supercharge Production by 2030
The White House announced a partnership on June 23, 2022, with 11 East Coast states to accelerate the growth of the United States’ offshore wind industry. The Biden administration offered the partnership to strengthen national energy security in a time of energy instability and simultaneously pursue a clean energy future.
Continue Reading White House Launches Federal-State Offshore Wind Partnership to Supercharge Production by 2030
President Biden Orders Tariff Exemption for Solar Panels
Yesterday, June 6, 2022, President Biden ordered various emergency measures to combat a shortage of solar modules and related components in the United States, including declaring a tariff exemption of up to two years on certain solar cells and modules exported from Cambodia, Malaysia, Thailand and Vietnam.
Continue Reading President Biden Orders Tariff Exemption for Solar Panels