Treasury Extends Transitional Process for Claiming Exceptions to Domestic Content Bonus Requirements

On November 22, 2024, Treasury and IRS announced the extension of the transitional process for entities to claim statutory exceptions if domestic content bonus requirements are not met in elective payment projects under IRC sections 45 (renewable electricity production), 45Y (clean energy production), 48 (renewable energy investment), and 48E (clean electricity investment) credits beginning construction in 2024 that fail to satisfy domestic content requirements. Under the notice, if an entity provides an attestation with respect to property the construction of which begins before the later of January 1, 2027, or the issuance of further guidance, the IRS will treat the attestation as establishing that one or both statutory exceptions to the application of the statutory elective payment phaseouts are met. The notice also states that the Treasury Department and IRS intend to propose regulations addressing the process by which the Secretary of the Treasury will implement the statutorily required exceptions to the phaseouts under sections 45Y(g)(12) and 48E(d)(5).