On May 12, 2023, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued Public Notice 2023-38, indicating their intent to propose regulations to address application of the rules that taxpayers must satisfy in order to qualify for the “domestic content” bonus tax credit established in the Inflation Reduction Act (IRA). The domestic content bonus tax credit –under Internal Revenue Code Sections 45Y and 48E – is an increased amount of federal tax credit that is otherwise separately available as production tax credit (PTC) or investment tax credit (ITC) for qualified facilities or energy projects that use a certain percentage of domestic content. It applies to clean energy projects that qualify for the existing renewable electricity PTC and ITC. Investments in newer clean energy technologies, such as energy storage facilities, can also qualify for the bonus credits.Continue Reading Initial Guidance for the Domestic Content Bonus Credit Issued