On October 5, 2022, the Department of Treasury (Treasury) issued a Request for Comments to help it develop guidance on the section 45 Renewable Electricity Production credit, section 48 Energy Investment credit, section 45U Zero-Emission Nuclear Power Production credit, section 45Y Clean Electricity Production credit, and section 48E Clean Electricity Investment credit. Each of those credit programs was revised in the IRA.
For the section 45 credit, the request solicited comments on how to verify that electricity sold to unrelated third parties is used to produce clean hydrogen, the reduction in credit for tax-exempt bond financing, and the definition of marine and hydrokinetic energy facilities, among other topics.
For the section 48 credit, the request solicited comments on newly-eligible energy property including electrochromic glass, energy storage technology, qualified biogas property, and microgrid controllers; energy property expenses for interconnection to the transmission or distribution system; the 80/20 rule used to determine whether retrofitted power plants qualify as new energy property; and the meaning of “structure” as it applies to solar generation, among other topics.
For the section 45U credit, the request solicited comments on “gross receipts” as the term applies to reducing a 45U credit by the amount received by a qualified facility from other zero-emission credit programs, among other topics.
For the section 45Y credit, the request solicited comments on applicable industry standards to determine taxpayer eligibility, considerations about the annual publication of a table with GHG emissions rates for types or categories of facilities, clarification on third party owned and operated metering devices, electricity “sold, consumed, or stored” by the operator, and the process of petitioning the Secretary to make a determination of the emissions rate for a facility lacking an established rate, among other topics.
For the section 48E credit, the request solicited comments on existing industry mechanisms to demonstrate eligibility. In addition, several topics solicited input on the environmental justice capacity limitation application, including application guidance and factors, incorporation of community input and benefits, the appropriate stage of project completion for applicants, certification that projects are to be built in low-income or Indian land, demonstration that the benefits of low-income residential building electricity production do not jeopardize housing eligibility, demonstration that at least 50 percent of the financial benefits of electricity production in a low-income economic benefit project is provided to households in applicable income thresholds, and the meaning of “financial benefit” as it applies to the provision of electricity to low-income individuals, among other topics.
The deadline to submit initial comments in response to the request was November 4, 2022.