Article Summary –
On May 29, 2024, the U.S. Department of the Treasury and the IRS released Proposed Regulations for clean electricity production and investment tax credits under Sections 45Y and 48E of the Internal Revenue Code, pivotal for the Biden Administration’s energy initiatives in the Inflation Reduction Act of 2022. These Tech-Neutral Credits will replace the legacy tax credits under Code Sections 45 and 48, which will begin to sunset in 2025, supporting the development of clean renewable energy resources in the coming decade. A white paper by several authors explains the rules and requirements for claiming these new credits.
New Regulations on Clean Energy Tax Credits Released by U.S. Treasury
On May 29, 2024, the U.S. Department of the Treasury and the Internal Revenue Service released anticipated Proposed Regulations regarding clean electricity production tax credits and clean electricity investment tax credits under Sections 45Y (“Tech-Neutral PTC”) and 48E (“Tech-Neutral ITC”) of the Internal Revenue Code of 1986, as amended (“Code”). The Tech-Neutral Credits are a key part of the Biden Administration’s energy incentives in the Inflation Reduction Act of 2022 and will be essential for developing clean renewable energy resources in the U.S. over the next decade.
This white paper, authored by experts including Beau Brawner, Andrew Bryant, Elina Coss, Nicole Gambino, Jaron Goddard, Brandon King, Peter Mostow, and Ryan Wong, explores the rules and requirements for claiming the Tech-Neutral Credits. These new credits will replace the legacy production tax credits (PTC) and investment tax credits (ITC) under Code Sections 45 and 48 that are set to sunset beginning in 2025.
Read the white paper here.
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