Date: 12/04/2024
Type: Implementation of IRA
On December 4, 2024, Treasury issued final rules for the IRC section 48 clean energy investment tax credit created by IRA section 13102. The regulations include changes to the energy property definition to allow it to apply to functional components, such as subsea cables for offshore wind, and changes to the definition of energy project to allow it to include multiple properties under the same ownership if they meet a multi-factor test.
Opportunities for Participation and Additional Resources:
- Final rule: https://www.federalregister.gov/public-inspection/2024-28190/definition-of-energy-property-and-rules-applicable-to-the-energy-credit
- Press Release: https://home.treasury.gov/news/press-releases/jy2736
- Explainer for Tax-Exempt Entities: https://home.treasury.gov/system/files/8861/ITC%20Elective%20Pay%20Explainer%20vF%201224_0.pdf
- IRS Clean Energy Investment Credit Landing Page: https://www.irs.gov/credits-deductions/clean-electricity-investment-credit