The U.S. Dept. of the Treasury and Inside Income Service (IRS) have launched additional guidance on the Inflation Discount Act’s home content material bonus (45X) for the PTC and ITC. The teams launched their last guidelines last year.
Archive photograph of photo voltaic cells at SolarWorld’s Oregon manufacturing facility. Oregon Department of Transportation
The newest steerage updates and builds upon the home content material secure harbor that gives clear power builders the choice to depend on default price percentages offered by Dept. of Vitality (in lieu of acquiring direct price data from suppliers) to find out eligibility for the home content material bonus. Right now’s steerage displays improved default values that extra intently align with the traits and prices of relevant venture parts and manufactured product parts within the market, as analyzed by the DOE.
Now there are non-compulsory various price percentages for builders of photo voltaic initiatives that use photo voltaic cells manufactured with domestically-produced wafers to appropriately acknowledge price differentials for producers who use cells made with home wafers, thereby enhancing incentives for onshoring wafer manufacturing.
The steerage additionally offers a wide range of updates to make clear use of the secure harbor tables, together with:
- Photo voltaic: The up to date tables replace price percentages, make sure changes to the characterizations of relevant venture parts and manufactured product parts, and provide clarifying definitions.
- Home Photo voltaic Wafers: For every photo voltaic desk, there are new non-compulsory various price percentages for initiatives utilizing home photo voltaic cells manufactured with home wafers.
- Land-Primarily based Wind: The up to date desk for Land-Primarily based Wind contains minor changes to the characterizations of relevant venture parts and manufactured product parts.
- Battery Electrical Storage System (BESS): The up to date desk updates price percentages, makes sure changes to the characterizations of relevant venture parts and manufactured product parts, and provides clarifying definitions.
As well as, at the moment’s steerage offers extra readability on using the tables for retrofits, initiatives using elective pay (also called direct pay), in addition to carport and floating photo voltaic initiatives. Taxpayers could make the most of the secure harbor tables included on this steerage for initiatives starting development as much as 90 days after the discharge of additional steerage. See the safe harbor tables here.
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