Treasury Issues 2022 Renewable Electricity Production Credit Amounts

On November 28, 2022, the Department of the Treasury (Treasury) announced the new credit amounts for calendar year 2022 for the renewable energy production tax credit under section 45 of the Internal Revenue Code. The announcement notes that section 45 was amended by the IRA, which “changed the manner in which the [section] 45 credit amounts are calculated in the case of any qualified facility placed in service after December 31, 2021.” Those facilities will receive a 2.75 cents per kilowatt hour credit on the sale of electricity from wind, closed-loop biomass, geothermal, and solar. Open-loop biomass, landfill gas, trash, hydropower, and marine and hydrokinetic renewables are to receive a 1.25 cents per kilowatt hour credit when electricity is produced at a qualified facility placed in service starting in 2022. For facilities placed ins service before 2022, the credit amounts published by Treasury in Notice 2022-20 remain unchanged.